Page 120 - One report AUCT2024_Eng

Part 3
Financial Statements
I have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report, including in relation to this matter. Accordingly, my audit included the performance of procedures designed to respond to my assessment of the risks of material misstatement of the financial statements. The results of my audit procedures, including the procedures performed to address the matter below, provide the basis for my audit opinion on the accompanying financial statements as a whole.
Key audit matter and how audit procedures respond to this matter are described below.
Recognition of revenue from service income
As discussed in Note 4.1 to the financial statements regarding the accounting policies on revenue recognition from rendering of services, service income is significant accounting transaction as it represents material amounts in the financial statements and directly affects profit or loss of the Company. The major contribution of the Company’s revenue is from the property auction broker service fees. The revenue recognition is in the form of service on operating fee. The operating fee is primarily charged to the bidder, and the service fee is charged to the property owner, in accordance with the agreed conditions. The Company has a large number of service income transactions. In addition, the Company has several auction locations. In this regard, there is a risk related to the completeness and occurrence of recognition of revenue from service income. I therefore gave significant attention to the recognition of revenue from service income of the Company.
I have examined the recognition of revenue from service income of the Company by assessing and testing the Company’s internal controls with respect to revenue cycle by making enquiry of responsible executives, gaining an understanding of the controls and selecting representative samples to test the operation of the designed controls. I have applied a sampling method to select service income transactions occurring during the year and near the end of the accounting period, to assess whether the recognition of revenue from service income was in compliance with the Company’s policy. I have also reviewed credit notes that the Company issued after the period end and performed analytical procedures on disaggregated data to detect possible irregularities in service income transactions throughout the period, particularly for accounting entries made through journal vouchers.
Other Information
Management is responsible for the other information. The other information comprise the information included in annual report of the Company, but does not include the financial statements and my auditor’s
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Annual Registration Statement / Annual Report 2024
(Form 56-1 One Report)