In other cases, transactions errors relating to, for example undelivered order balances are identified after 30 September; we need to ensure those corrections are made in the next fiscal year.
Since undelivered order testing (only done in phase three) is the most time consuming, plan to assign one or two individuals at HQ to work with the IPA to complete
Recommendation: The Finance Officer at the Commission's European Regional Office should take action to ensure that invoices, undelivered orders
, and payroll accounts are reviewed to identify any goods and services received and liabilities incurred before September 30 so amounts are properly accrued in accordance with closing instructions at year-end.
Awea has capacity to process orders of between NT$200 million and NT$250 million per month, compared to over NT$400 million in the beginning of this year, with NT$2 billion in undelivered orders
and expects to see growing shipments to China this year.
At the Commission's ER office, we identified the following accounting procedure deficiencies: (1) Euro bank account transactions were not recorded and reconciled (2) English employees pension plan liability was not accrued timely (3) Some expenditure transactions lacked evidence of receipt dates and approvals (4) Undelivered orders
report did not support the general ledger balance (5) Some vendors had multiple identification numbers.
5 billion of undelivered orders
, with institutional investors predicting good likelihood for the maker to challenge NT$5 billion in consolidated sales this year.
With undelivered orders
of NT$700 million, Kao Fong saw cumulative sales hit a historic high in the first half and has orders to fill production throughout the end of October.
These manufacturers currently have undelivered orders
of between NT$800 million and NT$3.
The company has undelivered orders
valued between NT$3.