Company: HNIT
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001493152-25-003324
Chunk: 182

Company: Huineng Technology Corp
Filing Date: 2025-01-23
Form: 10-K
Item: Item 6
Chunk 182
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 statements that were communicated or required to be communicated
to those charged with governance that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgements. We determined that there are no critical audit matters.

The
critical audit matters communicated below are matters arising from the prior period audit of the financial statements that were communicated
or required to be communicated to those charged with governance and that: (1) relate to accounts or disclosures that are material to
the financial statements and (2) involved our especially challenging, subjective, or complex judgements. The communication of critical
audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the
critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they
relate.

Revenue
recognition

The
Company provides digital solutions to customers by developing, creating, and designing website for its customers and assist in website
maintenance after completion of website development. The recognizes revenue upon transfer of control of promised goods and services to
customers for a consideration as stated in service agreements.

The
Company has recorded USD20,000 revenue for the period ended November 30, 2023 and a deferred revenue of USD2,400 as of that date.

As
revenue is a presumed fraud risk areas in the consideration of fraud in a financial statements audit in accordance with AS2401, we have
identified revenue as the primarily focus on the financial statements audit in addressing fraud risk consideration. While ASC 606 is
the revenue recognition standard that affects all businesses that enter into contracts with customers to transfer goods and service,
we had examined the accuracy of the timing of revenue recognition (cut-off testing) and appropriateness of performance obligation recognition
to make sure it is in accordance with the standard.

Our
audit procedures in this area among others to test the appropriateness, completeness, accuracy, cut-off and occurrence of revenue included
the following:

    (a)
    Identified
    the performance obligations within in contractual agreements;

    (b)
    Assessed
    and evaluated the degree of control of the Company has over the goods and services and the point at which control is transferred
    to the customer;

    (c)
    Reviewed
    the application of revenue recognition criteria, including satisfactory of performance obligations and transfer of risk and rewards;

    (d)
    Evaluated