17h 31min, jan 29, 2026 y - Korber Technology Key WP Review

Description:

Tobacco machine sales
Buy back machines, reconditioned and sell
After warranty period there is services repairs
PM £400k, Group £650k
Auditing local PM £170k

Fully controls (next year to assess)
Debtors:
-£200k overpaid customer balances >6 years
-ageing 87k more than 181 days+
-confirmations not sufficient but additional procedures
-sales cut-off incoterms
- Grodno (Belarus) provided due to sanctions
Journals testing:
-manual journals to bank
-directors journals
Stock labour budget absorption based on 2022 rates
Payables
-VAT on advance payments issue; waiting on client
-warranty accrual SUAD
-bonuses agreed to contract & utilisation
-provision £200k for GS redundancy/restructuring
Other income
-cash deposit interest received
Dividends & minutes received
No complex accounting areas

MLP
-manual override of inventory purchase dates for provision manipulation
-no dilaps

FY 24 Review:
Financial review
Stock similar to PY £2m (net)
2nd hand machines are bought and immediately written down to nil if very old, not w/d if machine fairly new.
WIP only starts when there is an order
Stock provision -£200k
Receivables +£300k to £3.2m
Deposits paid +£120k (to suppliers)
Trade payables +800k to £1.8m ???? Reclass
Other liabilities +700k to £1m being deferred income adjustment due to incoterms cut-off
Revenues -£800k to £17.2m includes £400k Services income £400k????
'Other operating Prof' £500k ???? Interest income from cash pooling
DP services £120k vs £60k PY

WP review
Fully controls
Sales can not be raised without order, Mashaf seen
No issues in Sales TOC
No work done on Services income; sample selected sent to Gary
Purchases controls no issues
No rebates given to customers
After date credit notes; no issues
Journals testing
-manager review items outstanding
Inventories
- stocktake no issues
- cost/nrv no issues
- provision no issues
- WIP tested sample
Trade debtors
- 1.2m exposed o/due of which 900k <30 days
- RAK owing £200k not provided??? per Gary unsatisfactory explanation SUAD
- Grodno (Belarus) provided due to sanctions
Payables
- supplier statement testing
- no significant unusual accruals

Added to timeline:

Date: