Kimlun Corporation Berhad Annual Report 2020

Key audit matters (cont'd) Jeco_nition o^ renenue and cost o^ construction (cont'd) Information other than the financial statements and auditors' report thereon We evaluated management’s assumptions in determining the estimated total construction cost by comparing the estimated cost to complete with documentary evidence such as letters of awards issued to subcontractors and approved variation orders and by making reference to similar completed projects; We assessed the completeness of the cost incurred and the accuracy of the cost recognised in the financial statements by examining supporting evidence such as subcontractors’ progress claim and suppliers’ invoices; We tested management’s workings on the computation of percentage of completion; and We tested management’s workings on the computation of revenue. Our audit procedures included, amongst others and where applicable, agreeing the contract revenue to the original signed contracts or letter of awards issued by customers and where applicable, to approved variation orders. The directors of the Company are responsible for the other information. The other information comprises the Directors' Report and 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 identified above 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 on the other information that we obtained prior to the date of this auditors’ report, 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. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the directors of the Company and take appropriate action. - 11 - INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KIMLUN CORPORATION BERHAD (INCORPORATED IN MALAYSIA) Annual Report 2020 068