What Is The Auditor Of Petronas Dagagan Berhad (PDB?

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Recommended: Similarity between IFRS and GAAP

Petronas Dagangan Berhad (PDB) is a company that supplies petroleum products and service stations in Malaysia. PDB is divided into three segments, which are retail segment, commercial segment and other segment. The core of the businesses is retail, commercial, liquefied petroleum gas (LPG) and lubricants. PDB offers a range of products and services in them.

This assignment has three primary objectives with the first being to classify the types of audit opinion issued by the auditors of Petronas Dagangan Berhad. Audit opinion can be found on audited statements and auditor is required to state the opinion whether the statements have followed the generally accepted accounting principles (GAAP) or not. There are four types of audit opinion, …show more content…

Lin et al., (2006) stated that when the audit committee has low or no independency, it is believe that the quality and credibility of financial reporting can be badly affected. The independent audit committee directors are expected to ensure better financial reported. Therefore, hypothesis 2 is developed.

3. Audit Committee’s Financial Expertise and Earnings Management There is a statement in Egypt the Corporate Governance Code, that in the board must has at least one member of the audit committee that has relevant experience in financial. However, it does not state that a financial expert is someone who has a professional qualification from any professional accountancy bodies. Therefore, this article is going to examine the relationship between that audit committee’s financial expertise and earnings quality. Therefore, hypothesis 3 is developed.

4. Audit Committee Meetings and Earnings …show more content…

in arriving at audit opinion. Obtain audit evidence that is sufficient and appropriate is one of the most important steps that auditors should make and that is crucial in shaping the overall standard governing audit evidence. Audit evidence should be properly documented to ensure that the objective of the audit was achieved. If the objectives were not achieves, the working papers must contain documentation of failure. Also, the use of experts could be considered as audit evidence and auditors must know when their expertise is exceeded. This study therefore suggested that further empirical work should be done on the impact of evidence on audit

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