131 ANNUAL REPORT 2024 Key Audit Matters (Cont’d) Key audit matters How our audit addressed the key audit matters Impairment Assessment on Trade Receivables Refer to Note 11 to the financial statements As at 31 December 2024, the carrying amount of the trade receivables was approximately RM152,149,000. The Group is exposed to credit risk, or the risk of counterparties defaulting. The assessment of the adequacy of the allowance for impairment losses involved judgement, which includes analysing historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in the customer payment terms. We determined this to be a key audit matter given the magnitude of the carrying amount and the determination of the adequacy of the impairment loss of trade receivables under Expected Credit Losses (“ECL”) method involves the application of significant judgement and estimates. Our procedures included, amongst others: • Obtained an understanding of: • the Group’s control over the receivable collection process; • how the Group identifies and assesses the impairment of receivables; and • how the Group makes the accounting estimates for impairment. • Reviewed the ageing analysis of receivables and testing the reliability thereof; • Reviewed subsequent cash collections for major receivables and overdue amounts; • Made inquiries of management regarding the action plans to recover overdue amounts; • Compared and challenged management’s view on the recoverability of overdue amounts to historical patterns of collection; • Examined other evidence including customer correspondences, proposed or existing settlement plans, repayment schedules, etc.; and • Evaluating the reasonableness and adequacy of the allowance for impairment recognised. Information Other than the Financial Statements and Auditors’ Report Thereon The directors of the Company are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KEYFIELD INTERNATIONAL BERHAD (Incorporated in Malaysia) Registration No: 202001038989 (1395310-M) (cont’d)
RkJQdWJsaXNoZXIy NDgzMzc=