romnick bajin- audit program.docx
TRANSCRIPT
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Audit Objectives:
To determine the accurate amount of cash under possession of the entity.
a.) To discern whether the amount of cash recorded is the actual cash owned by
the entity.
b.) To evaluate whether the processes used in recording and measuring cash arreasonable and valid.
c.)To know whether errors or fraud are committed when recording the amount
of cash.Audit Procedures Done by Date W/P
Ref1. Discuss and document with the eld treasurer
the procedures for the receiving and
disbursements of cash.a.) Sources of cash
b.) Freuency of depositsc.) !ho makes the depositsd.) The "level# of cash receivede.) The nature and documentation of
e$penditures %invoices& check reuests& etc.)f.) 'uthori(ation procedures
. Determine whether the level of cash held in the
eld and in the o*ce is appropriate.
+. For petty cash funds,a.) Determine if an accurate petty cash voucher
is maintained.b.) -onduct a physical cash count.c.) Determine whether the petty cash funds are
restricted and know who has the access to
these funds.
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. For all checking accounts,a.) Determine the number of signatures reuired
for each check.b.) Determine the process for which cash is
received for mission operations.
c.) /btain bank statements for each account.d.) Determine the timing and freuency of the
preparation of bank reconciliations.e.) Summari(e a listing of deposits from the bank
statements and reconcile the amounts
reported and obtain other sources of income.f.) /btain bank reconciliation and test for
accuracy.g.) 0erify whether a second party reviews bank
reconciliation monthly.
AUDIT PROGRA !OR "A#$
Tick Mark Legend:
- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to
FX amount
A-G - Refer to W/P L-100 for
furter detailsM - As te recalculated
difference !elow posting scope" p/f/i
ased on the procedures performed and the results obtained& it is in
my opinion that the ob2ectives listed in this audit program have been
achieved.
3erformed by 444444444444444444444444444444444444444444444 Date
44444444444
5eviewed and approved by 4444444444444444444444444444444444 Date
44444444444
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-onclusions,
-omments,
AUDIT PROGRA !OR T$% AOU&T# DU% !RO OT$%R#'&OT%#( A/R)
Audit Objectives:
a.)To determine the accurate amount of receivables from outside
debtors.b.)To determine whether the amount of receivables are measured
with reasonableness.c.)To determine whether the process of aging the accounts
receivables and the process of determining the uncollectible
amounts and bad debts are valid and acceptable.d.)To determine whether errors or fraud are committed when
recording the amounts ofreceivables.
Audit Procedures Done
by
Date W/P
Ref
1. Discuss with the treasurer thenature& purpose& and term of
amounts due from others. The
recording of these amounts
should be in accordance with
the accepted accounting
standards.
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. 6$amine any note agreements.+. 7f possible& verify the balance
with the other party.. Determine whether the
interest is being properlycomputed and collected on a
timely basis.8. Determine whether loans&
advances& etc. were properly
authori(ed by personnel.9. 6valuate any personal account
balances to determine
reasonableness and estimated
timing of collection.
Tick Mark Legend:
- Recalculated w/o/e
- Agreed to G/L w/o/e - Recalculated respective to FX amount
A-G - Refer to W/P L-100 for furter details
M - As te recalculated difference !elow posting scope" p/f/i
ased on the procedures performed and the results obtained& it is in
my opinion that the ob2ectives listed in this audit program have been
achieved.
3erformed by 444444444444444444444444444444444444444444444 Date
44444444444
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5eviewed and approved by 4444444444444444444444444444444444 Date
44444444444
-onclusions,
-omments,
AUDIT PROGRA !OR I&%&TOR*
Audit Objectives:
a.)To determine whether the inventory re:ected in the accounts
represents a complete listing of products& materials and supplies
owned by the company and whether such assets are physically on
hand& in transit or stored at outside locations at the balance sheet
date.
b.) To determine whether inventory listings are accurately compiled&
e$tended& footed and summari(ed and the totals are properly
re:ected in the accounts.
c.) 7nventory is valued in accordance with generally accepted
accounting principles consistently applied at the lower of cost or
market.
d.) To determine whether e$cess& slow;moving& obsolete and defective
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inventory is reduced to net reali(able value.
e.)To determine if inventory is properly classied in the balance sheet
and disclosure is made of pledged or assigned inventory& ma2or
categories of inventory and the methods used to value inventory.
Audit Procedures Done by Date W/P
Ref1. /bserve the company
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to those used to compile the
inventory summary. 7nvestigate
any tags or count sheets added
or deleted.
c.)7f applicable& trace in uantities
at remote locations that were
conrmed.
d.)Test the e$tensions of several
items and foot the totals.
e.)5econcile the physical inventory
summary to the general ledger
account balance. 7nvestigate and
e$plain ma2or reconciling items.
ased on the procedures performed and the results obtained& it is in
my opinion that the ob2ectives listed in this audit program have been
achieved.
3erformed by 444444444444444444444444444444444444444444444 Date
44444444444
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5eviewed and approved by 4444444444444444444444444444444444 Date
44444444444
-onclusions,
-omments,
AUDIT PROGRA !OR T$% PROP%RT*( P+A&T A&D
%,UIP%&T
Audit Objectives:
a.)To determine whether all assets under the 3roperty& 3lant and
6uipment line item really fall under such asset classication.
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>and held for undetermined use is not recorded under 336 but
under the 7nvestment 3roperty line item. 3roperties for sale are not recorded as 336 but 7nventory.
b.)To determine whether the process of recording and measuring theitems in the 336 are reasonable and valid.
The method of computing depreciation re:ects the manner by
which the asset is used. !hether the method of measurement is in accordance with the
3hilippine ?''3.
!hether such items are measured at cost or fair value
!hether revaluation is elected as the subseuent measurement
of such items.
c.)To determine whether certain items in the 336 are mortgaged tocreditors.
d.)To determine whether all items in the 336 physically e$ists.
Audit Procedures Done by Date W/P Ref
1. Determine whether the entity
owns any assets %automobiles&
land& buildings& o*ce
euipment& etc.)
. Determine whether the listing of
all assets owned is maintained.
/btain a copy
5eview for completeness
Determine date of latest
compilation.
0erify whether the assetsare registered to a proper
authori(ing body. 7f not&
state the reasons.
+. Determine whether the entity
has obtained adeuate
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insurance on these assets.
. For any asset purchased&
determine whether proper
authori(ation was received.
8. Determine whether there is
appropriate security over
mission assets. This includes
documenting previous history of
theft.
ased on the procedures performed and the results obtained& it is in
my opinion that the ob2ectives listed in this audit program have been
achieved.
Tick Mark Legend:
- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
A-G - Refer to W/P L-100 for furter details
M - As te recalculated difference !elow posting scope" p/f/i
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3erformed by 444444444444444444444444444444444444444444444 Date
44444444444
5eviewed and approved by 4444444444444444444444444444444444 Date44444444444
-onclusions,
-omments,
AUDIT PROGRA !OR +O&G-T%R D%T#
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Audit Objectives:
a.)@otes payable& long;term debt& and debt euivalents represent a
complete listing of authori(ed debt.
!"# Such debt is properly classied between current and long;term
portions& and reuired disclosures have been made.Audit Procedures Done
by
Date W/P
Ref1. /btain or prepare an analysis of
notes payable& long;term debt&
capitali(ed lease obligations& and
other nancing transactions or
arrangements& such as lines of
credit.
. . Summari(e in the work
papers the information needed to
prepare any reuired nancial
statement disclosures.
5eview loan and debt
agreements and determine
if assets are pledged and ifthere are any restrictive
covenants. Aake nancial
statement disclosure points
for pledged assets and loan
restrictions. Determine if the
company is in compliance
with restrictive covenants.
. 6$amine leaseagreements and determine
if any leases should be
capitali(ed. Summari(e in
the work papers the
nancial statement
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disclosures for both capital
and operating leases.
Determine the current
portion of long;term debt.Summari(e in the work
papers the disclosures for
note terms& interest rates&
and maturities over the ne$t
ve years.
+. -onsider the need to apply one or
more additional procedures. The
decision to apply additionalprocedures should be based on a
consideration of whether
information obtained or
misstatements detected by
performing substantive tests or
from other sources during the
audit alter your 2udgment about
the need to obtain a further
understanding of control
activities& the assessed level of
risk of material misstatements.
. -onsider whether procedures
performed are adeuate to
respond to identied fraud risk
factors. 7f fraud risks factors or
other conditions are identied
that reuire an additional audit
response& consider those risk
factors or conditions.
8. -onsider whether the results of
audit procedures indicate
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reportable conditions in internal
control and& if so& add to the
memo of points for the
communication of reportable
conditions.
Tick Mark Legend:
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- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
A-G - Refer to W/P L-100 for furter details
M - As te recalculated difference !elow posting scope" p/f/i
ased on the procedures performed and the results obtained& it is in
my opinion that the ob2ectives listed in this audit program have been
achieved.
3erformed by 444444444444444444444444444444444444444444444 Date44444444444
5eviewed and approved by 4444444444444444444444444444444444 Date
44444444444
-onclusions,
-omments,
AUDIT PROGRA !OR R%%&U%
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Audit Objectives:
a.)To insure that the revenue is for valid transactions in the ordinary
course of business that are recorded correctly as to account&
amount& and period& and uncollectible amounts& returns& orallowances are adeuately provided for.
b.)5ecorded revenue includes billings at the correct amount for
products shipped or services provided.c.)-osts of products or services are valid& complete& and recorded
correctly as to account& amount& and period.d.)6$penses are valid& complete& and recorded correctly as to
account& amount& and period.e.)5evenues& cost of products or services& e$penses& and
e$traordinary& unusual& or infreuent items are properlydescribed and disclosed in the income statement.
Audit Procedures Done by Date W/P Ref
1. 7nuire of management or
review documentation
obtained previously on the
nature of the client
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. 3erform an analytical test of
sales by obtaining for the
work papers a schedule
summari(ing sales by ma2or
product line and geographiclocation for the year
compared to prior year
amounts& budgets& or other
e$pectations. 'naly(e this
schedule and critically
evaluate and document
e$planations for signicant
di=erences that are unusual
in amount or nature.
+. . /btain or prepare for the
work papers an analysis of
sales& cost of sales& and gross
prot summari(ed by product
line& department& location& or
other meaningful division& in
total and by meaningful
interim period %monthly&uarterly& etc.).
. Test the analysis by selecting
a few categories and
compare the amounts shown
with those recorded in the
sales 2ournal. Trace the sales
2ournal balances to the
general ledger.
8. 5eview the analysis and
identify any unusual trends or
variations within the period or
compared to the prior period.
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9. Determine the average or
standard mark;up percentage
for goods sold& if such
percentage e$ists. -alculatethe gross prot using the
normal percentage %with an
allowance for spoilage or
waste) and compare it to the
actual percentage reali(ed
during the period. Document
the comparison.
B. /btain and document sound
business reasons for large or
unusual di=erences in interim
or total amounts included in
the analysis. 5elate sales by
product line& if available& to
inventory categories for
possible overstock or
obsolete inventory items.
C. For specic selected e$pense
accounts that are sensitive or
sub2ect to unusual risk& select
specic individual large
disbursements and e$amine
the documents supporting
such transactions. This should
be considered for repairs and
maintenance& legal fees&
consulting fees& and similar
accounts& and any other
e$penses that should be
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vouched because the auditor&
or his rm& has ta$ return
preparation responsibility.
. 5eview and document thelarge or unusual di=erences
in specic e$pense accounts
compared to the prior period
actual amounts and& if
available& the current period
budget. From discussions with
management and analysis of
evidence from other audit
areas& obtain and documente$planations for the
variations noted.
Tick Mark Legend:
- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
A-G - Refer to W/P L-100 for furter details
M - As te recalculated difference !elow posting scope" p/f/i
ased on the procedures performed and the results obtained& it is in
my opinion that the ob2ectives listed in this audit program have been
achieved.
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3erformed by 444444444444444444444444444444444444444444444 Date
44444444444
5eviewed and approved by 4444444444444444444444444444444444 Date44444444444
-onclusions,
-omments,
AUDIT PROGRA !OR %P%&DITUR%#
Audit Objectives:
a.)To determine the appropriate amount of e$penditures of the
entity.b.)To determine whether the method of measurement of e$penses is
in accordance with the company policy or the ?''3.
c.)To determine the assumptions considered in measurement ofe$penses are correct.
d.)To determine whether certain research and development
e$penditures are e$pensed outright or capitali(ed.e.)To determine the nature and proper treatment of e$penses
charged against revenue.
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Audit Procedures Done by Date W/P Ref
1. 5eview the following, -ancelled checks for
agreement ofendorsement&
payee& amount& etc. Supporting invoices
for agreement of
description& amount&
date and account
classication.
3roper authori(ation
in accordance withthe company policy.
. 5eview the check register
for the prior months and
be particularly alert for
unusual items such as, >arge amounts
3ayments to agency
sta=s
3ayments totreasurer& director or
related persons 3ayments to banks
3ayments to
individuals+. For the travel advances or
reimbursements& etc.,
a.)Discuss the procedures forreimbursements with the
treasurer or director of the
company.
b.)Select disbursements for
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detail review of support and
determine whether the
documentation includes,
!ho incurred thee$penseE
!hat was the purpose
of the e$penditure
incurredE
!hen was the e$pense
incurredE !here was the e$pense
incurredE
!hy was the e$penseincurredE
. 5eview personal e$penses
for personal medical
charges for e$patriate
level sta=. 'gency funds
should not be used unless
with home o*ce
authori(ation. This
authori(ation must bedocumented.
Tick Mark Legend:
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- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
A-G - Refer to W/P L-100 for furter details
M - As te recalculated difference !elow posting scope" p/f/i
ased on the procedures performed and the results obtained& it is in
my opinion that the ob2ectives listed in this audit program have been
achieved.
3erformed by 444444444444444444444444444444444444444444444 Date
44444444444
5eviewed and approved by 4444444444444444444444444444444444 Date
44444444444
-onclusions,
-omments,