The first company that we selected is Apollo Food Holdings Berhad. APOLLO is principally responsible for investment holding and provides management services to its subsidiaries. Apollo Food Industries (M) Sdn. Bhd and Hap Huat Food Industries Sdn. Bhd. are the subsidiaries of APOLLO and they are mainly deal with the manufacturing and trading in the compound chocolate confectionery products and layer cakes. This company was incorporated as a private limited company under the name Apollo Food Holdings Sdn Bhd. on 5th March 1994. On 8th September 1994, the company is then transformed into a public limited company and used the name Apollo Food Holdings Bhd.
According to the annual report in 2011, the chairman's statement has revealed that because of the improvement of the demand in foreign countries and domestic markets, the turnover rate for this particular financial year has an increase of 10.51% compared with the previous year, 2010. To remain competitive in this challenging market environment, APPOLO has continuously improve their investment on newer and modern production machineries, stringent quality control and also product planning. Besides, training is also provided to the employee to improve their management, operational, industrial and marketing skills. "The Group's continuous effort to produce quality products and providing excellent service has been recognised with an International Quality Crown Award, London, in the realm of Customers Satisfaction, Leadership, Innovation and Efficiency, as established in the QC 100 TQM (Total Quality Management) Model in November 2010." ("APOLLO's Annual Report," 2011, p.29)
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An adequate and appropriate analysis and evaluation has gone through the company's annual report in year 2011. After the analysis and evaluation, it is believed that the auditor has issued a standard unqualified opinion report on APOLLO's financial statements.
This audit report consists of seven distinct parts of a standard unqualified audit report:
The report title is "Independent Auditors' Report" which has included the word "independent" to show that it is prepared by an unbiased third party.
The responsibilities of the directors of APOLLO and the auditors has stated clearly in the introductory paragraph. The directors is responsible to present a true and fair view financial statement that in comply with the Financial Reporting Standards (FRS) and The Company Act, 1965 in Malaysia while the auditors have the responsibility to issue an opinion on these financial statements based on the audit.
The scope paragraph contains the action of the auditors during the audit process. The auditors evaluated the overall financial statements presented and then made a risk assessment to determine whether any material misstatement within the financial statements.
Based on the audit, auditors expressed an opinion on financial statements in the opinion paragraph.
This opinion paragraph, the auditors have stated there: "In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of performance and cash flows for the financial year then ended." ("APOLLO's Annual Report," 2011, p.39) This means that the auditors have concluded that the financial statements are free from any misstatement and misleading and the approved accounting standards are used to prepare the financial statements. The auditors have warrant that the financial statements give a true and fair view of the company's financial status. "In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act." ("APOLLO's Annual Report," 2011, p.39) shown that the engagement is following the International Standards of Auditing (ISAs) in all respects. Besides, the auditors also indicated that the financial statements comprise all statements and they have gathered adequate audit evidence by stating: "We are satisfied that the accounts of the subsidiaries that have been consolidated with the financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes." ("APOLLO's Annual Report," 2011, p.39) Likewise, the sentences: "Our audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act." ("APOLLO's Annual Report," 2011, p.39) revealed that the financial statements is not necessary to be modified and also not requiring any additional explanation or any modification
Always on Time
Marked to Standard
At the bottom left corner of the audit report, the name of the auditors indicated the audit firm. From the annual report, it identified the Chartered Accountants (CA) firm is Reanda LLKG International.
The address has shown that the audit firm is from Kuala Lumpur.
The date, 23 August 2011 is the time when the audit process is completed.
In a nutshell, it can conclude that the audit report that has been issued by auditor on APOLLO's financial statement is classified as the standard unqualified opinion report, which is the best type of report that a company received. This is because the audit report has shown the financial information provided by APOLLO appears to be presented fairly. The auditor is also able to access all the financial information needed and had proven that the financial statements are in line with the approved accounting standards. Moreover, the report also contained the seven distinct parts and had met the five circumstances that required for the issuance of a standard unqualified opinion.