Serba Dinamik Annual Report 2016

166 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P INDEPENDENT AUDITORS’ REPORT (Cont’d) 2. Completeness and existence of materials on site Refer to Note 2(g) (accounting policy) and Note 9 (financial disclosures) The Key audit matter How the matter was addressed in our audit Material on site makes up a significant portion of the Group’s current assets. Coup with the multi-location operation of the Group, the material on site is spread throughout different sites. As a result, it is harder for the Group to monitor their material at site. We focused on this area as a key audit matter due to its susceptibility to error base on the nature of the operation. Our audit procedures included, amongst others: i) We evaluated the design and implementation of controls related to inventories. ii) We attended inventory count to ascertain the accuracy of material on site’s volume and its existence. iii) We vouched purchases and payments of inventories during the year to obtain corroborative evidence over existence of material on site. We have determine that there is no key audit matter in the audit of the separate financial statement of the Company to communicate in our auditors’ report. 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 annual report 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 annual report, in doing so, consider whether the annual report 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 the annual report, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Statements The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards and the requirements of the Companies Act 1965 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the ability of the Group and of the Company to continue as going concerns, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group and the Company or to cease operations, or have no realistic alternative but to do so.