MKH Annual Report 2019

082 A N N U A L R E P O R T 2 0 1 9 Report on the Audit of the Financial Statements Opinion We have audited the financial statements of MKH BERHAD , which comprise the statements of financial position of the Group and of the Company as at 30 September 2019 and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, as set out on pages 87 to 238. In our opinion, the accompanying financial statements of the Group and of the Company give a true and fair view of the financial position of the Group and of the Company as at 30 September 2019 and of their financial performance and their cash flows for the year then ended in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are described further in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”) and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and IESBA Code. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current year. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. Key audit matter How the matter was addressed in the audit Revenue from property development activities Our audit procedures included, among others: The Group recognises property development revenue using the cost-based input method, which is measured on the basis of the Group’s efforts or inputs to the property development costs incurred to date relative to the total expected property development costs. • Obtained an understanding of the relevant controls put in place by the Group in respect of revenue recognition for property development activities and performed procedures to evaluate the design and implementation and test operating effectiveness of such controls. INDEPENDENT AUDITORS’ report TO THE MEMBERS OF MKH BERHAD (Incorporated in Malaysia)