audit requirements list

CPAG

30-June-2015

AUDIT REQUIREMENTS SCHEDULE Date required Interim

30/04/2015

Final

30/06/2015

Date provided NOTES

SUMMARY INFORMATION

Trial balances detailed by account at 30 April 2015 ASAP a a

Final trial balances detailed by account at 30 June 2015 Audit fieldwork

Detailed general from 1 July 2014 to 30 June 2015. Audit fieldwork a a

Draft management accounts at 30 April 2015 (including the management

accounts excel work book).

ASAP a a

Budget for the next financial year (FY 2016). Audit fieldwork a

Details and brief descriptions of any major subsequent events. Audit fieldwork a

Copies of any contractor licenses renewals - renewed since 30 June 2014. Audit fieldwork a a

Updated organisational chart Prior to Audit a

SYSTEMS

Copy of risk management policy and risk management register if relevant. Prior to Audit a

Copy of any business/ strategic plans for the entity. Prior to Audit a

Access to a senior member of your IT department/external service provider in

order that we can run through a series of standard questions about the IT

environment.

Audit fieldwork a

Updated Business Continuity and Disaster Recovery Plan Prior to Audit a

CASH / BANK OVERDRAFTS

For each bank account the bank reconciliation including listing of outstanding

cheques and deposits.

Audit fieldwork a

Copies of 30 June bank statements for each account. Audit fieldwork a

A schedule of interest bearing deposits and supporting statements for each

account and a calculation of any accrued interest.

Audit fieldwork a

Bank statements for year to be made available - electronic download is strongly

preferred.

Audit fieldwork a a

Copy of bank facility document including details of any bank covenants in place. Prior to Audit a

Copies of agreements relating to equipment financing. Prior to Audit a

RECEIVABLES

Aged trade debtors listing at balance date. Audit fieldwork a

Reconciliation to General Ledger Audit fieldwork a

Aged other debtors listing at balance date Audit fieldwork a

Listing detailing the status of any large and overdue debtors balances included in

the ledger. Also details of any significant credit balances included in the listing.

Audit fieldwork a

Details of cash receipts received subsequent to year-end relating to pre year-end

for selected debtors.

On request. aPP to provide a selection.

Listing of bad debts, including reasons for each major bad debt. Audit fieldwork a

Indication of any related party debtors on debtors listing Audit fieldwork a

Details of the calculation of the provision for doubtful debts including breakdown

of debtors provided for.

Audit fieldwork a

List of credit notes (or negative sales) raised from 1 July 2015 to audit date. Audit fieldwork a

Details of any non-standard contractual arrangements with Trade debtors e.g.

pricing policies, discounts and rebate / contra arrangements, payment terms.

Audit fieldwork a

A report providing the breakdown of accrued income at balance date. Audit fieldwork a


30/04/2015

Final

30/06/2015

Date provided NOTES

PROPERTY, PLANT & EQUIPMENT

Details of the asset capitalisation policy. Audit fieldwork a

Fixed assets register/s to 30 June 2015. Audit fieldwork a a

Reconciliations to general ledger Audit fieldwork

Details of fixed asset additions / disposals, fair value adjustments. Audit fieldwork a a

Invoices supporting PP&E additions in the year - on request. On request. a a PP to provide a selection.

Support for the sale of any significant assets. On request. a a PP to provide a selection.

Reconciliation of depreciation per the fixed asset register to depreciation

expenses in the profit and loss account.

Audit fieldwork a

Reconciliation of (profit)/losses on sale per the fixed asset register to

(profit)/losses on sale in the profit and loss account.

Audit fieldwork a

Details of fixed assets under finance lease or hire purchase. Audit fieldwork a a

INTANGIBLES

Roll forward of intangible assets from 30 June 2015. Audit fieldwork a

Reconciliation of amortisation expense per intangibles assets register to profit

and loss.

Audit fieldwork a

Copy of managements impairment assessment of goodwill. Audit fieldwork a

PREPAYMENTS AND OTHER ASSETS

A listing of prepayments and deposits as at balance date. Audit fieldwork a

Rental bond support Audit fieldwork a Bank statements

Short Term Deposit statements - Macquarie Audit fieldwork a

Breakdown of balance on any suspense accounts Audit fieldwork a

LOAN RECEIVABLES / PAYABLE

Loans to - Non-group entities

Details of all related parties for which the group engage in transactions. Audit fieldwork a

Confirmation or statement of loan balances from external and related parties. Audit fieldwork aSame template as prior year

Roll forward of related party balances from 1 July 2014. Audit fieldwork a

Loan confirmations including any agreements for repayment:

- Subsidiaries, associates or joint ventures Audit fieldwork a

- Any new related party balances for which transactions have been undertaken. Audit fieldwork a

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Where the related party balance is a receivable - assessment of recoverability by

reference to net assets of that entity.

Audit fieldwork a

Terms of repayment, and expected date for repayment of debt. Audit fieldwork a

TRADE & OTHER PAYABLES

Trade creditors aged trial balance as at balance date. Audit fieldwork a

Where there are significant debit balances on the listing reasons for the debit

balance.

Audit fieldwork a

Reconciliation to General Ledger Audit fieldwork a

Listing/reconciliation of related party payables. Audit fieldwork a

Other creditors listing as at balance date, and supporting schedules. Audit fieldwork a

Copies of any vendor/supplier agreements and details of any major current

purchase commitments including key provisions and timeframes of such

agreements.

Audit fieldwork a a

Details of and support for amounts in “Accruals” including a comparison to the

prior years and commentary on major movements.

- PAYG (agreed to payroll activity summary report & BAS) Audit fieldwork a

- Superannuation Liability (agreed to payroll activity summary report) Audit fieldwork a

- General accruals (please provide supporting calculation and invoices) Audit fieldwork a

Schedule of cash payments from 1 July 2015 to date Audit fieldwork aPayment summaries after year end

Unpaid invoices as at date of audit fieldwork Audit fieldwork a

Un-earned revenue calculations Audit fieldwork a


30/04/2015

Final

30/06/2015

Date provided NOTES

OTHER FINANCIAL LIABILITIES

Borrowings - External

Where relevant - Borrowings reconciliation including opening balance, loans

raised, principal repayments, adjustment to loan value, together with relevant

support.

Audit fieldwork a

Terms of repayment, and expected date for repayment of debt. Audit fieldwork a

Calculation of interest accruals where required. Audit fieldwork a

Leases & Hire Purchases

Listing of all capital and lease commitments contracted for at period end and

copies of:- new operating leases in the year. Prior to Audit a a

- new finance leases and hire purchase contracts in the year. Prior to Audit a a

PROVISIONS

IT : Electronic copy of the YTD payroll report , master file, and entitlement

records.

Audit fieldwork a

Listing of annual leave entitlements (electronically) by employee (number of days

accrued) x (pay rate) = total liability

Audit fieldwork a

Listing of total number of employees during the period, including details of new /

terminated employees

Audit fieldwork a

Details of leave taken during the period, and access to leave approval forms Audit fieldwork a

Access to EFT payment reports for all pay runs in the year to date and access to

employee files.

Audit fieldwork a a

Discounted long service leave provision calculations by employee, including

details of assumptions for inflation %, discount % and probabilities.

Audit fieldwork a

Split of long service leave into current and non-current portions Audit fieldwork a

Detailed calculation for any other provisions including:

- make-goods

- straight-line leases

Audit fieldwork a

TAXES

Income tax

Details of any tax disputes between the company, the Commissioner of Taxation

or any other Federal, State or Municipal body or authority

Audit fieldwork a a

Access to all correspondence received from the Australian Taxation Office

(“ATO”) to date.

Audit fieldwork a a

Access to all advice in relation to taxation matters. Audit fieldwork a a

Goods and Services Tax (“GST”)

Copies of lodged Business Activity Statements (“BAS”) including June 2015. Audit fieldwork a a

Copies of all supporting schedules and reconciliations used in the preparation of

the BAS's.

Audit fieldwork a a

Copies of all advice and ATO audits in relation to GST matters. Audit fieldwork a a

A listing of general ledger accounts which are not subject to GST. Audit fieldwork a


30/04/2015

Final

30/06/2015

Date provided NOTES

PAYG Withholding

Copies of the annual reconciliation statements lodged with the ATO (including

relevant supporting work papers and pay-roll/wages reports).

Audit fieldwork a

FBT

Latest calculation of FBT payable at 30 June 2015. Audit fieldwork a

CONTINGENT LIABILITIES & COMMITMENTS

Details of any off balance sheet financing instruments, including letters of

comfort.

Audit fieldwork a

Copies of all leases and sub leases either as lessor or lessee in respect of the

premises (not yet already provided)

Audit fieldwork a a

Listing of all contingent liabilities known to management up to the date of sign-

off, including but not limited to bank guarantees/commitments to purchase or

sell any assets of the company or claims by customers.

Audit fieldwork a

Copies of all contracts whereby the company guarantees the obligations of

others

Audit fieldwork a

Details of any capital expenditure commitments. Finalisation a

EQUITY

Details of any movements in share capital (issues, buyback) Audit fieldwork a

Details of any share options or warrants issued Audit fieldwork a

Roll forward of share capital from 1 July 2014 to 30 June 2015. Audit fieldwork a

STATUTORY RECORDS

Directors minutes for whole of financial period and subsequent. (additional from

interim)

Audit fieldwork a a

CEO reports for the period from 30 June 2014. Audit fieldwork a a

Company Registers including registers of charges etc Audit fieldwork a a

Minutes of board/shareholder and management meetings

PROFIT & LOSS

Revenue/WIP

Update of our understanding of system and procedure notes with respect to the

revenue cycle.

Audit fieldwork a PP to provide documented notes

from FY14. Could you please

update for any changes since 1 July

2014.

If policy and procedure notes are not documented - access to relevant employees

involved in the processes.

Audit fieldwork a

Reconciliation of Data Build reports of revenue and cost of sales to revenue and

cost of sales per the general ledger.

Audit fieldwork a a

WIP/Unearned income reports at 30 June 2015. Audit fieldwork a a

Access when requested to detailed contracts report which itemise invoices raised

and costs incurred on specific contracts selected for testing

Audit fieldwork a a

Access to sale contracts on request. Audit fieldwork a a

Revenue - Other

Schedules supporting any sundry revenue Audit fieldwork a

Schedule of interest income Audit fieldwork a


30/04/2015

Final

30/06/2015

Date provided NOTES

Expenses (ex Management, Employees & Contractors)


expenditure cycle.




2014.



Audit fieldwork a

Detailed schedule of legal fees paid, and copies of invoices. Audit fieldwork a a

Copies of all insurance policy documents Audit fieldwork a a

Access to specific purchase invoices on request. PP will select certain expenses

invoices for vouching.

Audit fieldwork a a

Schedule of consulting / management fees - identifying any amounts to related

parties.

Audit fieldwork a

Reconciliations of depreciation and amortisation - refer sections above. Audit fieldwork a

Analysis of interest expense versus loan agreements. Audit fieldwork a

Explanation of certain expenses - we will advise further once detail is obtained -

based on interim results:

Audit fieldwork a

Payrol (Management, Employees & Contractors)


payroll cycle.




2014.



Audit fieldwork a

Details of any redundancies made or planned. Audit fieldwork a a

Access to EFT payment reports for all pay runs in the year to date and access to

employee files.

Audit fieldwork a a

Listing of total number of employees during the period, including details of new /

terminated employees

Audit fieldwork a

Details of pay rises awarded in the year Audit fieldwork a a

Copies of any EBA's, pay awards applicable to employees of the company. Audit fieldwork a a

Details of employee bonus schemes in place. Copy of Bonus policy document. Audit fieldwork a

Access to employee files on request On request a a

Access to employee timesheets on request. On request a a

Reconciliation of wages expense accounts to payroll records. Audit fieldwork a

Reconciliation of labour costs to wages per BASs. Audit fieldwork a

Reconciliation of labour costs to Group tax records. Audit fieldwork a

Summary of bonuses outstanding at 30 June 2015 including details of when the

bonuses were paid.

Audit fieldwork a

Details of employee superannuation. Audit fieldwork a

Details of any loans to employees. Audit fieldwork a

Workers compensation return certificates including detailed work papers to

support claims.

Audit fieldwork a

JOURNALS

Report generated from the system which lists all of the general journals

processed in the period. It is preferable that this report is generated in our

presence.

On request. a

audit requirements list

Documents