Page 132 - annual report AUCT 2025_Eng

Business Operation and Operating Results Corporate Governance Financial Statements Attachments
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
132
Annual Registration Statement / Annual Report 2025
(Form 56-1 One Report)