Answer to Question #281256 in Management for Ribasshni

Question

Your client, Aminah Sdn Bhd has asked whether representatives of your firm would be available to attend a meeting with the company’s bankers, who they are hoping will finance the acquisition of Mochi Sdn Bhd. They are depending on your presence to support the management team in conveying the suitability of the acquisition of Mochi Sdn Bhd.

For the meeting, the bank requires the most up-to-date interim accounts of Aminah with the accompanying auditor’s independent interim review report. Your firm is due to complete the interim review shortly and the management team of Aminah has requested that the interim review be completed quickly so that it does not hold up negotiations with the bank. They also implied that if it does, it might affect the outcome of the next audit tender, which is due to take place after the completion of this year’s audit.

Answer should be related with MIA professional ethics

Answer 1

Interim statements offer a more timely look into a business’s operations, rather than waiting until year-end statements, which do not officially become available for months after year-end close anyway. Investors find the periodic snapshots helpful when allocating investment capital – all of which leads to greater market liquidity – a prime goal of capital markets.

These reports can also alert investors and analysts to recent changes that meaningfully affect the corporation. A form 8-K, for instance, is used to report unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the Securities and Exchange Commission (SEC). The report notifies the public of events reported including acquisition, bankruptcy, resignation of directors, or a change in the fiscal year. Form 8-K reports may be issued based on other events up to the company's discretion that the registrant considers to be of importance to shareholders.

For tender to be successful, make certain you comprehend the requirements. Thoroughly review the contract documents. Attend any pre-tender seminars and prepare properly with questions. If you're still unsure and need help, ask for clarification. This is the point at which you must decide whether or not to proceed with the bid. A range of representative documents and certificates will be included with each tender submission. Make sure you have all of the relevant licenses and certifications. Examine the contract's terms of service to ensure that you can meet them. Tenders that are not compliant may be rejected by customer.