17h 7min, feb 16, 2026 y - Oqema Key WP Review

Description:

Trading Goods only no manufacturing
Chemicals distribution (Food, Pharma, Aroma etc.)
FRS 102 to HGB
Substantive audit
Recognise Revenue upon delivery to customer
10+2
No DB Pension scheme, no derivatives, no SBP
Auditing to local PM £744k
GA shared comfort - ITGC only

Journals
-Tab 3; February seismic increase due to "PI backlog" but no testing. Team to follow up
-Tab7,8 - no issues
-Tab10 - MLP for segregation

Revenue/debtors
-insured
-debt factoring non-recourse!
-completeness fine
-cut-off didn't check stock ledgers

Purchases
-cut-off has a $4.4m GRN; no checks on stock ledgers. FI to check O/S

Confirmations
-bank received
-debtors poor response; alternative
-tax done R&P; no issues
-intercompany received
-legal is in-house council; 3 cases (HCL, AMS, Garlic)

HCL case £200k;
-no changes in claim
-Oqema AG have master policy, UK not named but expecting to be dragged in
-FY26 Q2 to be kept or reversed

AMS £1.2m
-disagreed on settlement, will go to court
-probability to win/lose
-IC agreement between UK and AG
-Contracting party is AG not UK

Garlic/Nut allergy - no provision
-nut traces found but have supplier certificate
-parameters acceptable for food
-supplier is BRC accredited for food chain
-UK named on master policy

Bank
-£1m suspense account is reconciling items; FI said checked

Payables
-supplier statement; alot of reconciling items, rec received but not summarised properly by us; FI to follow up
-VAT fine
-Accruals mainly legal accruals as above

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