Sasbadi Annual Report 2020

SASBADI HOLDINGS BERHAD 146 FINANCIAL STATEMENTS (continued) Key Audit Matters (continued) 3. Valuation of inventories Refer to Note 10 to the financial statements. The key audit matter How the matter was addressed in our audit The valuation of inventories is a key audit matter because of the judgement involved in assessing the level of allowance for inventories write down required and the inventories balance as at year end is material to the Group. We performed the following audit procedures, amongst others, around the valuation of inventories: x We evaluated the design and implementation over the control of identification of slow moving inventories and tested their effectiveness; x From samples selected, we checked the inventories to sales subsequent to the year end to determine that these were sold at more than its cost; and, x We assessed the adequacy of the allowance for inventories write down at year end. We have determined that there is no key audit matter in the audit of the separate financial statements 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 Directors’ Report and Statement on Risk Management and Internal Control (but does not include the financial statements of the Group and the Company and our auditors’ report thereon), which we obtained prior to the date of this auditor’s report, and the remaining parts of the annual report, which are expected to be made available to us after that date. 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 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.