-difficulties in getting large cashflow

-board of directors are having office politics clouding judgement (biasness)

S1A to C

Fraud

high inherent risk

-The auditing team should have also probed further the company about their ability to pay on time

1. Lack of Disclosure:

   • There was no written assurance provided regarding a director's potential connection to Primetel.

2. Board Dynamics:

   • The board of directors appears to be affected by office politics.

   • This situation may be clouding their judgment and leading to biased decision-making

• Internal control risks

• Impairment of S1A, S1B, S1C were not factored in

• No proper of Segregation of duties ( Control risk)

Sales for S1A is below expectations and lead to a write down .

Company engaged independent firm to test their product and found 50 issues.

Board of directors was incompetent in technology.

Audit risk: The auditors never check for documentation, only did inquiry and nothing else. Doesnt answer assertions

Assurance paperwork was not properly filed.

Verbal documentations instead of paperwork

Risk to cyber attacks

The company relied solely on verbal assurances without obtaining any physical evidence to substantiate the claimsThus, these verbal confirmations cannot be deemed reliable. Verbal assurances are inherently less dependable because they lack tangible proof and can be subject to misinterpretation. For an assurance to be credible, it should be supported by concrete evidence such as documents, records, or other verifiable data. Hence this poses a significant audit risk.

Maybe got fraud

The 2 people kissing might be the sister and the ex bro in law and if they still have some sussy relationship then got COI.

Dan should not have skipped out on report checking.

• Development delay for D. Share value drops

• Write down of tech value.

• Picture taken of shareholder’s sister + Premintal’s Board of Director. Allegedly no family relations or connections. Divorce proof?

• Premintel is a “supplier” that is a shell company

• Integrity concern with family links and ownership of the company unclear. Are reports being produced for the amount paid or just a justification for money going though?

• Never checked if the tech written in the reports make sense to be worth the cost justified especially when the payments increased this FY.

Clearer instructions on what should have been done for the spreadsheets should also be given as the poor fella had no clue about what to do

The last guy did not check properly before coming up with a conclusion

They only took into account the verbal confirmation and didn't investigate further.

-Dan did not finish his research properly so there might be chance for audit risk and he lied to his Joy that he was done giving a chance to potential audit risk.

- guy kept assuring that he has no connection w premintel, but someone snap photo of the scandal

• Audit team invited tech people from another company, not part of the audit team

More payments made to Premintel
Searched ownership of Premintel after realising the abnormal payments.

The girl is not supposed to discuss confidential information in the hallway. She should find somewhere more official and then ask. For example, an office.

One of the members was still very unsure of what to do but after getting a call, he said that everything was done next morning. He might not have finished the report properly.

Audit firm did not receive reports from last yr.

When they Received assurances from the one of the directors that there were no family connection.

The audit firm should not have used word of mouth as reliable info for the audit .

Audit firm was pressured by the client to not look into the company.

however, the team should have verified with more information before asking the director such assertive & direct questions.

one of the audit members left & didn't finish his audit work.

1. Overall Team Performance:

   • The audit team demonstrated commendable work as a collective unit.

2. Individual Responsibility:

   • Dan's decision to forgo the report verification process was an oversight.

   • This omission in Dan's duties stands out as an area for improvement

• Premintel is a shell company to be used for bribing interested companies to pick their product.

• Using different agent to secure deals, trustable? No history we can

• External auditors to uncover… nothing

• Order cancellations due to?

• Data is being stolen? From Dan’s reports that he didn’t check and left out.

• February data attacks linked to order cancellation?

• IT Project invoice? Different explanations for reasons to draw money out

• Sighting of location of contractor office

-sent reconfirmation to the 6 countries

-Report was not fully complete

Bribery

Suppliers were not legitimate

bribery

- blackmail

- bogus transactions with suppliers

- guy accepted contracts to generate revenue and keep stocks high

Tom with his blackmailing of pictures

Richard authorising Tom to do it because of the pressure of the profits not making it

There was also opportunity for it to happen

Blackmailing

Blackmail

Fraud company does not exist

Lying

Company feels pressured to keep up with high stock prizes

There was bribery involved.

bribery

false suppliers that turn out to be fictional.

incomplete audit work.

Receiving bribes

Say no to blackmailing :DDD

check all the documents and make sure with your team before approaching the client

#HONESTY #AUDITOR #ICAEW

I also learned more about ICAEW and the future of accountancy students.

And also be nice to people and do not blackmail or do bribery.

Your client will not be friendly as they don't like surprises.

be more thorough with the documents provided

must be careful and accurate if not might hv grave consequences

Michelle - clients can be difficult people

Yuning - we should follow our instincts

Communication within the group is v impt

-sarguna