ROMNICK BAJIN- AUDIT PROGRAM.docx

8/10/2019 ROMNICK BAJIN- AUDIT PROGRAM.docx

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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:


- 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



achieved.

3erformed by 444444444444444444444444444444444444444444444 Date

44444444444


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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.



achieved.

3erformed by 444444444444444444444444444444444444444444444 Date

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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.



achieved.

Tick Mark Legend:



- Recalculated respective to FX amount




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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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achieved.

3erformed by 444444444444444444444444444444444444444444444 Date44444444444


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.


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:








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.


21/23


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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achieved.

3erformed by 444444444444444444444444444444444444444444444 Date

44444444444


44444444444

-onclusions,

-omments,

ROMNICK BAJIN- AUDIT PROGRAM.docx

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