A Delima

1st Case Study - MAF 680

AC 220 8D

Group members:
• Aziem Mukriz bin Abdullah 2012673222
• Muhamad Nabil Fauzan bin Azman 2013874174
• Muszahidah binti Mustafa 2013243488
• Nur ‘Ain binti Yusoff 2013207572
• Nur Ameera binti Azizan 2013681986
 -Delima Enterprise
- Encik Zayed as a founder
1981 -Trading & supply products,
manpower supplies.

-Business growth
- Delima Enterprise Sdn Bhd
- Controlling director (husb wife)
- basis position in the company are family
2004 members
- Mission : become a leading service contractor
and provide quality product and excellent
services.
- been awarded: RM 1.0 mil cumm revenue.
 -Continue business as usual
2005 - been awarded: RM 1.7 mil
cumm revenue.

-Employed Cik Amy as Finance

Executive
- secured contract RM750000
May - shortage funds: submit application for
banking faculities
2006 - bank requested audited financial
statement
 -Engaged external auditor Aziz
July & Co
- several unresolved issues
2006 - planned to appoint new
“friendly party” auditor.

Sept - Issue the audited

financial statement.
2006
DIRECTORS WERE NOT FAMILIAR WITH
ACCOUNTING STANDARDS AND THE
PROVISIONS OF THE COMPANIES ACT
1965, INCLUDING THEIR ROLES AND
DUTIES AS COMPANY DIRECTORS.
Not qualify the Financial Statements
• Section 132
• Financial Statements must be audited
Appointment of Auditor & appoint a new
“friendly party”
• Appointment by Company
• Appointment by Directors
• Appointment by Registrar
• Qualification of auditor
Training employees
• Employed employee who did not have job experiences
Issue : No Standard Operating
Procedure (SOP) for financial
department
 STANDARD OPERATING PROCEDURE
FOR SALES & COLLECTIONS

ORDERING • 1. Approval of sales order

• 2. Checking of credit limits
AND • 3. Preparation of despatch
DESPATCH document
GOODS • 4. Despatch of goods

• 1. Preparation of sales invoices

• 2. Processing of invoice – sales
INVOICING journal and debtors ledger
• 3. Preparation of debtors
statement
 STANDARD OPERATING PROCEDURE
FOR SALES & COLLECTIONS

• 1. Preparation of credit
CREDIT NOTES notes for valid claims of
AND defective goods
ADJUSTMENTS

• 1. Initial recording of cash received

• 2. Enter cash received in cash book
RECEIVING AND • 3. Preparation of deposit slip and payment
RECORDING OF into bank
• 4. Posting of receipt into debtors ledger
CASH/CHEQUES • 5. Checking of cash book with bank
statement
 STANDARD OPERATING PROCEDURE
FOR SALES & COLLECTIONS

• 1. Posting to general ledger

GENERAL • 2. Agreement of control
account
RECORDING

• 1. Following up overdue
debts
OVERDUES • 2. Adequate provision made
for doubtful debts
 STANDARD OPERATING PROCEDURE FOR
PURCHASES & PAYMENT
• 1. Requisition of goods
ORDERING • 2. Ordering goods

• 1. Receipt of goods
• 2. Checking
RECEIPTS • 3. Claims for short deliveries or defective goods
OF GOODS • 4. Putting goods into store

• 1. Receiving invoices
• 2. Checking invoice
• 3. Coding invoice
PROCESSING • 4. Overall approval of invoice
INVOICE AND • 5. Processing invoice for purchase journal
SETTING UP • 6. Processing invoice for creditors ledger
LIABILITY
• 7. Reconciliation of creditor ledger account with suppliers statement.
STANDARD OPERATING PROCEDURE FOR
PURCHASES & PAYMENT
• 1. Selection of item for payment
• 2. Preparation of cheques
• 3. Approval of cheques
• 4. Signature of cheques
• 5. Enter cheques in cash book
PAYMENT • 6. Posting of payment to creditor ledger
• 7. Checking of bank statement with cash book

• 1. Posting to general ledger

• 2. Agreement of control account

GENERAL
STANDARD OPERATING PROCEDURE
FOR PAYROLL PROCESS
Update Employee Master File

Set Pay Period

Enter Time Worked

Enter Manual Payment

Alter Deductions

Review Reports
Issue Payments

Issue Management Reports

Back Up Data
Lock Down The Period

Deposit Taxes

Store Time Cards

Investigation Errors
Problem: The employees prepared
their timesheets manually.

• Inefficient
• Easily misplaced/lost
Suggestions
• Used automated timekeeping systems

• Keep it simple
 MYOB
CURRENT FINANCIAL
SOFTWARE WAS NOT
INTEGRATED Documents were manually
prepared.

Documents were not pre-numbered.

Data was not processed & generated

automatically between modules.

Procurement Human Resource (HR)

Accounts Receivables (AR)

Accounts Payables (AP)

Cash Book
SOLUTIONS..? New skills & knowledge can be
acquired.

Employees feel
Employee training supported and enabled in
their work.
& development
Wider impact in
the organisation.

Upgrade the
accounting software

MYOB Essentials

MYOB AccountRight
 POOR
SEGREGATION OF
Others..
DUTIES
Withdrawals were made without
proper documentation.

Cik Amy No one reviews the prepared

accounting records

Maintenance of the accounting &

financial matters

Preparation of accounts
 Authorization – approving
SOLUTIONS..? transactions and decisions

Recording –
Segregation of preparing source
Duties documents

Custody
- handling cash, tools,
inventory, or fixed assets;
- receiving incoming cheques;
- writing cheques
Employee Job
Descriptions

Describe employee’s job or position.

They create clarity. Clarifies employer

expectations for employee.
 ENCIK ZAYED
Chief Executive Officer
Delima Enterprise Sdn Bhd
Organizational Chart

HR &
Operations Finance
Administration
Manager Manager
Manager

Project Clerical
Supervisor Assistant

Project Team
THE END