audit programs
TRANSCRIPT
-
7/27/2019 Audit Programs
1/491
B.1.2 Audit Programs for Different Cash Accounts
1. Cash in VAULT
NAME OF AGENCY
AUDIT PROGRAMFOR THE PERIOD ________________
CASH in VAULT
( Account Code 101 )
Account Description: This account is used to record the amount of cash collected by the
Treasurer of the Philippines and the Treasurers of Local Government Units (LGUs)
pending deposit.
Audit Objectives:
1. To ascertain the existence or occurrence of the balance of cash in vault.
2. To determine the completeness and regularity of the account balance.
3. To determine whether the account is properly presented and adequate disclosure is made
in the financial statements.
Assertions: Completeness ( C), Existence or Occurrence (EO )), Validity/Legality or
Regularity ( VR ), Presentation and Disclosure (PD ).
AUDITPROCEDURES
WP
Re
f
FS
ASSERTI
ON TO
BEDON
E
BY
TIME
FRAME
REMAR
KS
DATE
START
ED
DATE
COMPLE
TED
1.1 Count all cash in vault simultaneously
Physically control all cash and cash
items until all funds have been counted
to prevent transfers by the Treasurer of
counted funds to uncounted funds.
See to it that the Treasurer or theCustodian of the cash is present
throughout the count.
EO
-
7/27/2019 Audit Programs
2/491
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION TO
BE
DON
E
BY
TIME
FRAME
REMAR
KS
DATE
START
ED
DATE
COMPLE
TED
Obtain a signed receipt from the
Treasurer on the return of the
cash/funds to minimize the possibility,
in the event of a shortage, of the
Treasurer claiming that all cash was
intact when presented to the auditor for
counting.
Verify whether all undeposited checks
are payable to the order of the agency
C
EO
RO
1.2 Prepare Cash Count Sheet. List the
denominations of the cash and the cash
items counted (examples in CA-1, CA-2
and CA-2a).
EO
2.1 Trace the account balance presented in the
Trial Balance to the General Ledger
(GL). Check that the balance matches
with that of the balance appearing in the
GL.
C
2.2 Verify the GL postings from the Cash
Receipts Journal (CRJ) and General
Journal (GJ). Check totals.
C
EO
2.3 Trace the entries in JEVs against the
Report of Collections and Deposits
(RCD) and source documents.
C
RO
PD
3.1 Check whether the balance of the account
is properly presented as
Current Asset in the balance sheet and
adequate disclosure is made in the
financial statements.
PD
4.1 Prepare Audit Observation Memorandum(AOM) on the noted discrepancy/
difference .
4.2 Organize working papers includingindexing and cross-referencing.
-
7/27/2019 Audit Programs
3/491
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
2. Cash-Collecting Officers
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH Collecting Officers
( Account Code 102 )
Account Description: The account represents amount of cash collections with Collecting
Officers (CO) / Postmasters/ Telegraph Operators pending deposit.
Audit Objectives:
1. To ascertain the existence or occurrence of the account Cash-Collecting
Officers/Postmasters/Telegraph Operators.
2. To determine whether cash collections are completely and properly recorded as
prescribed in the manual of NGAS and in accordance with existing laws, rules and
regulations.
3. To determine whether the cash collections in foreign currency are properly valued in local
currency at the current exchange rate as of balance sheet date.
-
7/27/2019 Audit Programs
4/491
4. To determine whether the account is properly presented and adequate disclosure is made
in the financial statements.
Assertions : Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality or
Regularity ( VR ), Valuation and Measurement ( VM), Presentation and Disclosure (PD).
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION
TO
BE
DONE
BY
TIME
FRAME
REMAR
KS
DATE
STAR
TED
DATE
COMPL
ETED
1.1 Obtain the list / schedule of Collecting
Officers with their account balances.
C
EO
1.1 Count all cash on hand simultaneously in
the presence of the CO.
C
EOVM
a.Examine the cash items, see to it that
fake bills and demonetized coins are
not included.
b. Examine checks for erasures on
amount and dates, authorized check
signatories, endorsements and see to
it that checks are made payable to theagency. The following should be
excluded from cash items.
Post dated checks
Sale checks and money order
Chits, IOUs, vales or other forms
of promissory notes
C
EO
VR
RO
VM
c. Prepare cash count sheet. List all cash
counted by denominations including
cash items.
C
EO
d. Segregate the cash items by group,
such as: checks, money orders, etc.
Proceed with the listing of the cashitems using the space provided in the
form. In the case of checks and
money orders, indicate the serial
number, date, drawer, drawee and
amount.
C
EO
-
7/27/2019 Audit Programs
5/491
AUDIT
PROCEDURES
W
P
Re
f
FS
SSERTION
TO
BE
DONE
BY
TIME
FRAME
REMAR
KS
DATE
STAR
TED
DATE
COMPL
ETED
1.3 Obtain the signature of the CO/ custodianacknowledging that funds were counted
in his presence and were returned to him
intact.
EO
1.4 Compare cash counted with collections in
the Report of Collections and Deposits /
Cash Receipt Record on the date of count
and reconcile with
with Subsidiary Ledger to establish
undeposited collections. Compute the
shortage or overage, if any. In case
C
EO
VR
of overage, have it receipted; in case of
shortage, comply with the provisions of
COA Memorandum 2002-053 datedAugust 26, 2002.
1.5 See to it that undeposited collections are
deposited not later than the next bankingday and that all checks and postal money
orders counted are deposited and
honored by the bank.
C
EO
VR
1.6 Trace the undeposited collections to the
subsequent bank-validated deposit slips
and bank statements.
C
EO
VR
2.1 Trace the account balance from Trial
Balance to GL and compare with the
total of the SL balances of CO. Verify
discrepancy, if any.
C
EO
2.2 Verify GL balance from the CRJ / CJ.Check totals/ footings.
C
EO
2.3 Test check certain number of JEVs to
establish proper cut-off.
C
EOVM
-
7/27/2019 Audit Programs
6/491
-
7/27/2019 Audit Programs
7/491
-
7/27/2019 Audit Programs
8/491
Account Description: This account is used to record the amount of cash advances granted
to designated Regular or Special Disbursing Officers/ Postmasters/ Telegraph Operators
for payment of authorized official expenditures or redemption of postal money orders and
telegraphic transfers subject for liquidation.
Audit Objectives:
1. To ascertain the existence or occurrence of the account Cash - Disbursing Officers (DO).
2. To determine whether the grant of cash advances and the disbursements made are
completely and properly recorded in accordance with existing laws, rules and
regulations.
3. To determine whether the account is properly presented in the financial statements and
adequate disclosure is made.
Assertions: Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality or
Regularity ( VR ), Presentation and Disclosure (PD ).
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION TO
BE
DON
E
BY
TIMEFRAME REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Obtain list/ schedule of regular and special
Disbursing Officers and their account
balances.
C
EO
1.2 Count all cash on hand simultaneously:
Physically control all cash and cash
items held by the Disbursing
Officers (DO) until all
have been counted. This is to
EO
prevent transfers by the DO of
counted funds to the uncounted
funds. See to it that the DO is presentthroughout the count.
Obtain the signature of the DO
acknowledging that the cash were
counted in his presence and the fundswere returned intact.
Marked the cash items such as
Suppliers invoices and ORs which
had been actually examined.
EO
-
7/27/2019 Audit Programs
9/491
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION TO
BE
DON
E
BY
TIME
FRAME REMAR
KSDATE
START
ED
DATE
COMPLE
TED1.3 Prepare Cash Count Sheet. List
denominations of cash, and cash items
counted. If cash items include suppliers
invoices and paid payrolls, recommend
that these be recognized as expense.
C
EO
1.4 Compare the total per count with the
balance appearing in the Cashbook.
Verify the difference, if any.
C
EO
1.5 Reconcile the cashbook / CDR balance
with the SL to establish the
accountability of the DO at the time of
count.
C
EO
1.6 For non-agency funds in the hands of the
DO, obtain confirmation fromthose responsible for the administration
of the said fund.
C
EO
1.7 For non0agency funds in the hands of the
DO, obtain confirmation from those
responsible for the administration of the
said fund.
EO
RO
2.1 Trace the balance to the GL/SL and
ascertain if balances tally.
C
EO
2.2 From the Schedule of Cash Disbursing
Officers account in 1.1, compare
balances with the GL/SL, TB and
balance sheet (example in CA-5).
C
EO
2.3 Verify details of the Schedule from Cash
Disbursement Records.
C
EO
2.4 Test samples of cash advances for
authority/ approval and examine
replenishment/ liquidation vouchers if in
order.
C
EO
VR
-
7/27/2019 Audit Programs
10/491
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION TO
BE
DON
E
BY
TIME
FRAME REMAR
KSDATE
START
ED
DATE
COMPLE
TED3.1 Check whether the account is properly
presented as Current Asset in the balance
sheet.
PD
3.2 Prepare and issue Audit Observation
Memorandum for discrepancies noted
(CA-5a).
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
4. Petty Cash Fund
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
PETTY CASH FUND
( Account Code 104 )
Account Description: This account is used to record in the books of the agency cash
granted to designated Petty Cash Custodian for payment of authorized petty or
miscellaneous authorized expenditures, which cannot be conveniently paid thru check.
Audit Objectives:
1. To ascertain the existence or occurrence of Petty Cash Fund.
-
7/27/2019 Audit Programs
11/491
2. To determine whether Petty Cash Funds are completely and properly recorded and
utilized in accordance with existing laws, rules and regulations.
3. To determine whether the account is properly presented and adequate disclosure is made
in the financial statements.
Assertions: Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality or
Regularity ( VR ), Presentation and Disclosure (PD ).
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Trace the balance presented in the Trial
Balance to the GL.
C
EO
1.2 Obtain the Cashbook/ Cash Disbursement
Record (CDR) from the Petty Cash
Custodian and compare the balance with
the balance per GL/SL.
C
EO
1.3 Check the correctness of the postings in
the GL/SL from the Cashbook/ CDR.Check totals/ footings.
C
EO
1.4 Trace entries from GL to Check
Disbursement Journal (CkDJ) and Report
of Checks Issued (RCI) (checks issued to
the Petty Cash Custodian for the
establishment/ replenishment of PCF) andJEVs and Cash Disbursement Journal
(CDJ) for the corresponding liquidation.Note discrepancy, if any.
C
EO
VR
1.5 Examine sample replenishment of
expenses for approval and adequacy of
documentation.
C
EO
2.1 Conduct cash count. Check whether the
total cash and cash items counted agree
with the petty cash fund balance in the
SL/GL.
C
EO
3.1 Check whether the account is properly
presented as current asset in the Balance
Sheet.
PD
3.2 Prepare AOM for the discrepancies noted.
3.3 Organize working papers including
indexing and cross-referencing.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
-
7/27/2019 Audit Programs
12/491
. Cash - National Treasury, Modified Disbursement System (MDS)
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH National Treasury, Modified Disbursement System (MDS)
( Account Code 108 )
Account Description: This account is used to record in the Regular Agency (RA) books
the receipt of Notice of Cash Allocation (NCA) from the Department of Budget and
Management (DBM) and/or Notice of Transfer of Allocation (NTA) received from the
Central Office/Regional Office thru which cash is withdrawn with the issuance of MDS
checks.
Audit Objectives:
1. To ascertain the existence or occurrence of the balance of Cash-National Treasury, MDS(net of charges against the NCA).
2. To determine the completeness and regularity of the balance of Cash - National Treasury.
3. To determine whether the account is properly presented and adequate disclosure is made
in the financial statements.
Assertions: Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality or
Regularity (VR ) Presentation and Disclosure (PD ).
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION TO
BE
DON
E
BY
TIMEFRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Obtain and review agency prepared Bank
Reconciliation Statement (BRS).
check mathematical accuracy;
verify the validity of outstanding
checks;
check ending balance per booksagainst the SL/GL;
C
EO
RO
check ending balance per books
against the Bank Statement.
2.1 Trace the balance per TB to the GL. C
EO
-
7/27/2019 Audit Programs
13/491
AUDIT
PROCEDURES
W
P
Re
f
FS
ASSERTION TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED2.2 Check whether receipt of all NCAs are
recorded in the Registry of Allotments
and NCAs (RANCA) and covered with
JEVs and posted in the GJ and GL.
C
EO
VR
2.3 Review / test check JEVs / disbursements
to ensure occurrence of transactions,
accuracy of amount, completeness of
supporting documents (including copy 1
of RCI, copy 2 of checks and copy 3 of
ALOBS) and correctness of accounting
entries in the JEVs.
C
EO
2.4 Verify recording of check disbursements
in the CkDJ and analyze accounting
entries made.
C
EO
2.5 Check totals / footings in the Ck DJ and
compare with the amount posted in the
GL. Take note of the discrepancy, if any.
C
EO
2.6 Check whether the balance per GL tallies
with the total amount of all unreleased
checks in the Statement of Undeposited
Collections (SUC) at year end.
C
EO
RO
3.1 Check whether the account is properly
presented as current asset in the Balance
Sheet and disclosure is properly made.
PD
3.2 Prepare and issue AOM for discrepancies
noted.
3.3 Organize working papers including
indexing and cross-referencing.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
-
7/27/2019 Audit Programs
14/491
6. Cash in Bank - Local Currency, Current Account
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH in BANK Local Currency, Current Account
( Account Code 111 )
Account Description: This account is used to record deposits/withdrawals in local currencyin a current account maintained with AGDB.
Audit Objectives:
1. To ascertain the existence or occurrence of Cash in Bank in local currency currentaccount.
2. To determine whether deposits and withdrawals of cash in current account are completely
recorded and properly valued at the current exchange rate of the BSP in accordance with
existing laws, rules and regulations.
3. To determine whether the account is properly presented and adequate disclosure on any
restriction is made in the financial statements.
-
7/27/2019 Audit Programs
15/491
Assertions: Completeness ( C), Existence or Occurrence ( EO ), Rights and Obligations (
RO ), Presentation and Disclosure (PD ).
AUDITPROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Obtain Bank Statements and examine in
detail the agency-prepared Bank
Reconciliation Statement (BRS)
Compare the ending balance per books
with the balance confirmed on theBank Confirmation form(see 1.2
below).
Verify the deposits in transit and
outstanding checks.
C
EO
C
EO
RO
Establish the mathematical accuracy
of the reconciliation.
Investigate old items such as checksoutstanding for a long period of time
and unusual items.
E
RO
1.2 Confirm with the bank the balance of each
depository account using the Bank
Confirmation form (example in CA-9).
Perform the following:
Prepare confirmation requests in
duplicate and have these signed
by an authorized check signatory of
the agency. Send both copies to thebank and request that the original be
directly returned to the auditor.
Send confirmation requests to all
banks in which the client has an
account, including those that have a
zero balance at the end of the year.
C
EO
RO
-
7/27/2019 Audit Programs
16/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.2 Prepare the summary of results of
confirmation and compare with SL
balances (CA-10).
C
EO
RO
2.1 Trace the balance in the Trial Balance to
the GL and to the corresponding SL.
C
EO
2.2 Obtain the Schedule of the account and
trace the details of the Schedule againstthe SL.
C
EO
2.3 Examine postings in the SL against the
GL. Check totals/ footings. Check
whether the total of all SL balances
matches with the controlling account inthe GL.
C
EO
2.4 Trace postings to the journals, reports and
JEVs.
C
EO
2.5 Check whether the account is properly
presented as current asset in the Balance
Sheet and any restrictions on thewithdrawal of cash balances are
adequately disclosed in the notes to
financial statements.
RO
PD
3.1 Prepare and issue AOM for the
discrepancies noted. (CA-11 and CA-
12).
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
7. Cash in Bank - Local Currency, Savings Account
NAME OF AGENCY
-
7/27/2019 Audit Programs
17/491
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH in BANK Local Currency, Savings Account
( Account Code 112 )
Account Description: This account is used to record deposits/withdrawals in localcurrency, savings account maintained with AGDB.
Audit Objectives:
1. To ascertain the existence or occurrence of Cash in Bank, local currency savings
account.
2. To determine whether deposits and withdrawals from the savings account are authorized,
completely and properly recorded.
3. To determine whether the account is properly presented and any restriction is adequately
disclosed in the financial statements.
Assertions: Completeness ( C), Existence or Occurrence ( EO ), Rights and Obligations (
RO ), Presentation and Disclosure (PD ).
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED1.1 Confirm bank / passbook balances.
Confirm with the bank the balance of
each depository account using the Bank
Confirmation form and perform the
following:
Prepare confirmation request in
duplicate and have these signed by an
authorized check signatory of the
agency. Send both copies to the bank,
and request that the original be
returned directly to the auditor.
C
EO
Send confirmation requests to all
banks in which the client has anaccount, including those that have a
zero balance at the end of the year.
-
7/27/2019 Audit Programs
18/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.2 Compare SL balances with results of
confirmation. (example in CA-13).
C
EO
1.3 Obtain BRS and review the agency
prepared BRS and perform the
following:
compare the ending balance with the
balance confirmed on the bank
confirmation form;
verify the validity of deposits in
transit and outstanding checks;
verify reconciling items such as bank
charges and bank credits and errors
to supporting documents; and
verify old items such as checks
outstanding for a long period of time
and unusual items.
C
EO
2.1 Trace the balance presented in the Trial
Balance to the GL and to thecorresponding SL for Cash in Banks
account.
C
EO
2.2 Obtain the Schedule of the account.
Trace the details of the Schedule against
the SL.
C
EO
2.3 Examine postings in the SL against the
GL. Check totals/footings and comparethe total of all SL balances with the
controlling account in the GL.
C
EO
2.4 Trace postings to the Journals, Reports,
JEV. C
EO
2.5 Check whether the interests earned are
properly recorded.
C
EO
VM
-
7/27/2019 Audit Programs
19/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.1 Check whether the balance of the account
is properly presented as current asset in
the Balance Sheet, and any restrictions
on the withdrawal of cash balances are
adequately disclosed in the notes to
financial statements.
RO
PD
3.2 Prepare and issue AOM for discrepancies
noted.
3.1 Organize working papers includingindexing and cross-referencing.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
8. Cash in Bank - Local Currency, Time Deposit
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH in BANK Local Currency, Time Deposit
( Account Code 113 )
Account Description: This account is used to record placements in local
currency of excess cash or cash not earmarked for immediate use with authorized
depository banks for a specified period.
Audit Objectives:
1. To ascertain the existence or occurrence of Cash in local currency, time deposits.
2. To determine whether the placement in time deposits are completely and properly
recorded.
3. To determine whether placement and termination of time deposits are authorized.
4. To determine whether the account is properly presented and any restriction is adequately
disclosed in the financial statements.
-
7/27/2019 Audit Programs
20/491
Assertions: Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality or
Regularity ( VR ), Presentation and Disclosure (PD ).
AUDITPROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Confirm with the bank all Time Deposit
placements.
C
EO
RO
1.2 Compare results of confirmation with
schedule of placements (CA-14).C
EO
RO1.3 Verify the original copies of the
Certificates of Time Deposits(CTD) and
check whether the certificates are in the
name of the agency.
C
EO
RO
VR
1.4 Compare the CTDs with the schedule. C
EO
2.1 Check the mathematical accuracy of the
schedules and reports and compare
balances with SL/GL/Trial Balance.
C
EO
2.2 Verify the correctness of the postings in
the GL/SL from the journals and JEV.
Check totals/footings.
C
EO
2.3 Test sample JEV and supporting
documents. Verify terms of placements,particularly the rates of interests and
maturity period.
C
EO
VM
2.4 Test samples on the computation of
interests earned from matured andpreterminated placements.
C
EOVM
2.5 Obtain written authority to
preterminate placements.VR
2.6 Prepare working paper for discrepancies
noted (see CA-15, CA-15a).
-
7/27/2019 Audit Programs
21/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.1 Review the agencys authority to place
cash in time deposits from the following:
a. Charter, board resolutions, agency
policies;
b. Local Government Code,
Sanggunian/Resolutions for LGUs;
c. DBM and/or other duly authorized
officials approval for NG.
VR
3.2 Evaluate whether placement made is in-
line with the operations of the agency or
necessary for the attainment of the
agencys objectives.
EO
VR
3.3 Check whether Time Deposit placement is
approved by authorized official of the
agency.
EO
VR
3.4 Obtain written certification from
management that all Time Deposits in
the name of the agency are free fromliens and other restrictions.
VR
RO
3.5 Obtain and examine relevant board
resolutions and verify if there are board
resolutions attaching Time Deposits to
loans.
VR
RO
3.6 Check whether all restrictions related to
the account including the rates of interest
and maturity terms are adequatelydisclosed in the notes to financial
statements.
RO
PD
4.1 Check whether the account is properly
presented as current asset in the Balance
Sheet.
PD
-
7/27/2019 Audit Programs
22/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
4.2 Prepare and issue Audit Observations
Memorandum (AOM) for noted
discrepancies
(CA-16).
4.1 Organize working papers including
indexing and cross-referencing.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
9. Cash in Bank - Foreign Currency, Current Account
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH in BANK Foreign Currency, Current Account
( Account Code 115 )
Account Description: This account is used to record foreign currency deposits/withdrawals
in a current account maintained with authorized government depository banks.
Audit Objectives:
1. To determine the existence or occurrence of cash in foreign currency, current account.2. To determine whether the deposits and withdrawals in the current account are completely
recorded and properly valued at the current exchange rate as of balance sheet date.3. To determine whether the account is properly presented and adequate disclosure is made
in the financial statements.
Assertions: Completeness ( C), Existence or Occurrence (EO ), Valuation or Measurement
( VM), Presentation and Disclosure (PD ).
-
7/27/2019 Audit Programs
23/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.1 Confirm bank balances by sending bank
confirmations to AGDBs. C
EO
1.2 Compare SL balances with results of
confirmation.
C
EO
1.3 Obtain Bank Statements and BRS and
perform the following:
Check balance per bank in the BRS
against Bank Statements.
Check balance per book in the BRS
against GL.
C
EO
Verify the validity of reconciling
items.
Test check mathematical accuracy.
Verify long outstanding reconciling
items. Take note of discrepancies.C
EO
VM
2.1 Trace balance to the GL and SL. C
EO
2.2 Verify postings in the GL/SL from the
journals and JEV and supporting
documents (debit and credit
advice/memo). Check totals/footings.
C
EO
VR
2.3 Obtain the BSP foreign exchange
rates prevailing at transaction and
balance sheet date.
EO
VM
2.3 Test check entries in JEV on theconversion to local currency (peso) at
transaction dates.
EOVM
2.5 Check whether the balance is correctly
translated to peso amount using the BSP
foreign exchange rate at balance sheet
date.
VM
PD
-
7/27/2019 Audit Programs
24/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
2.6 Check whether foreign exchange
gain/loss is properly recorded and
presented in the Income Statement.
C
VM
PD
2.7 Test check the correctness of the
computation of interest, if deposit is
interest-bearing. Take note of
discrepancy.
C
3.1 Check whether the account is properly
presented in the balance sheet as currentasset in the Balance Sheet.
PD
3.2 Check whether the FOREX rate used inconverting foreign currency deposits to
peso at balance sheet date is disclosed in
the notes to financial statement.
PD
3.3 Prepare and issue Audit Observations
Memorandum (AOM) for discrepancies
noted.
3.3 Organize working papers including
indexing and cross-referencing.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
10. Cash in Bank - Foreign Currency, Savings Account
-
7/27/2019 Audit Programs
25/491
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH in BANK Foreign Currency, Savings Account
( Account Code 116 )
Account Description: This account is used to record foreign currency deposits /
withdrawals in savings account maintained with authorized government depository
banks.
Audit Objectives:
1. To ascertain the existence or occurrence of cash in foreign currency savings account.
2. To determine whether the foreign currency deposits and withdrawals in savings account
are completely recorded and properly valued.
3. To determine whether the account is properly presented and adequately disclosed in the
financial statements.
Assertions: Completeness ( C), Existence or Occurrence (EO ), Valuation or Measurement
( VM), Presentation and Disclosure (PD ).
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Confirm bank balances by sending BankConfirmations to AGDB. C
EO
1.2 Compare SL balances with results of
confirmation.
C
EO
1.3 Obtain Bank Statements and BRS and
perform the following:
Check balance per bank in the BRS
against Bank Statements.
C
EO
Check balance per book against GL.
Verify the validity of reconciling
items.
Test check mathematical accuracy.
Note long outstanding reconciling
items and investigate.
-
7/27/2019 Audit Programs
26/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
2.1 Trace balance to the GL and SL. C
EO
2.2 Verify postings in the GL/SL from theJEVs and supporting documents (debit
and credit advice/memo). Check footings
C
EO
2.3 Obtain from BSP / BTr foreign exchange
rates prevailing at transaction and
balance sheet dates.
EO
VM
2.4 Test check correctness of conversion tolocal currency (peso) at transaction dates
of entries in the JEVs.
CEO
VM
2.5 Check if forex gain/loss is properly
recorded and presented in the Income
Statement
C
EO
PD
2.6 Check whether the balance is correctly
translated to peso amount using the BSP
exchange rate as at the balance sheet
date (CA-17).
C
EO
VM
PD
2.7 Test check the correctness of thecomputation of interest, if deposit is
interest-bearing.
C
EO
VM
2.8 Take note of deficiency, if any.
3.1 Check whether the balance of the account
is properly presented as Current Asset
in the Balance Sheet/ in accordance with
the order of presentation in the NGAS
Manual.
C
PD
3.2 See if the FOREX rate used in converting
foreign currency deposits to peso at
balance sheet date is disclosed in the
notes to financial statements.
-
7/27/2019 Audit Programs
27/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.3 Prepare and issue Audit Observations
Memorandum (AOM) for the
discrepancies noted.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
11. Cash in Bank - Foreign Currency, Time Deposit
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
CASH in BANK Foreign Currency Time Deposit
( Account Code 117 )
Account Description: This account is used to record foreign currency in time deposits
maintained with authorized government depository banks.
Audit Objectives:
1. To ascertain the existence or occurrence of foreign currency time deposits.
2. To determine whether the time deposits are completely recorded and properly valued.
3. To determine whether Time Deposits placements and terminations are authorized.
4. To determine whether the account is properly presented and adequately disclosed in the
financial statements.
Assertions: Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality orRegularity ( VR ), Valuation or Measurement ( VM), Presentation and Disclosure (PD ).
-
7/27/2019 Audit Programs
28/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.1 Confirm all Time Deposit placements with
the bank.C
EO
RO
1.2 Compare results of confirmation with
Schedule/SL balances.
C
EO
1.3 Take note of discrepancy, if any. VR
1.4 Verify the original copies of Certificates of
Time Deposits and check that the same
are in the name of the agency.
C
EO
VRRO
1.5 Compare CTDs with schedule. C
EO
2.1 Verify mathematical accuracy of
management prepared schedules/ report
and determine agreement with
SL/GL/TB.
C
EO
2.2 Verify the correctness of the postings in
the GL/SL from the JEVs. Checkfootings.
C
EO
2.3 Test check JEVs and supporting
documents (such as Letter of
Authorization issued to AGDBs, Debit
and Credit Memo).
C
EO
VR
2.4 Obtain from BSP/BTr foreign exchange
rate prevailing at transaction and balance
sheet dates.
C
EO
VM
2.5 Check if upon termination of FCTDs
forex differences are recognized and
taken up in the books.
C
EO
VM
2.6 Check whether the balance is correctly
translated to peso amount using the BSP
exchange rate as at the balance sheetdate.
C
EO
VM
-
7/27/2019 Audit Programs
29/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
2.7 Verify terms of placements especially on
interests.
EO
VR
VM
2.8 Test check correctness of computation of
interests earned from matured and
preterminated placements.
C
EO
VM
2.9 Verify/ review authority to preterminate
placements.
VR
2.10 Prepare working paper. Notediscrepancy, if any.
3.1 Review the agencys authority to place
cash in foreign currency in TimeDeposits from the Charter, board
resolutions, agency policies, Local
Government Code, Sanggunian
/Resolutions for LGUs and/or other duly
authorized officials approval for NG.
VR
3.2 Evaluate if placement is in-line with the
operations of the agency or necessary forthe attainment of the agencys objectives.
3.3 Check whether the Time Deposit
placement is approved by proper official
of the agency.
4.1 Check whether the account is properly
presented as Current Asset in the
Balance Sheet.
VR
4.2 See if adequate disclosures were
made in the Notes to FinancialStatements on the interest rates and
maturity terms of Time Deposits and the
forex rate used in translating foreign
currency to peso on balance sheet date.
-
7/27/2019 Audit Programs
30/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
4.3 Prepare summary of noted discrepancies
(CA-18, CA-19 and CA-20) and issue
AOM.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
B.2.2 Audit Programs for Different Receivable Accounts
1. Accounts Receivable Trade and Allowance for Doubtful Accounts
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
ACCOUNTS RECEIVABLE -TRADE
( Account Code 121 )
ALLOWANCE FOR DOUBTFUL ACCOUNTS
( Account Code 301 )
Account Description: The account Accounts Receivables Trade is used to record the
amount due from customers/clients resulting from services rendered, trading/business
transactions or sales of merchandise or property which are expected to be collected in the
regular course of business or over a definite period.
Audit Objectives:
1. To determine whether receivables represent valid claims against debtors and other parties.
2. To determine whether recorded receivables are owned by the entity as of balance sheet
date.
3. To determine whether all valid receivables are completely and properly recorded.
4. To determine whether the related allowance for doubtful accounts is reasonably provided.
-
7/27/2019 Audit Programs
31/491
5. To determine whether all transactions complied with the existing rules and regulations
and policies of the agency.
6. To determine whether the presentation and disclosure of receivables is adequate which
includes the classification of receivables into appropriate categories, reporting of
receivables pledged as collateral and the related party receivables.
Assertions: Existence or Occurrence (EO ), Rights and Obligation (RO ), Completeness ( C), Valuation or Measurement ( VM), Validity/Legality or Regularity ( VR ), Presentation
and Disclosure (PD ).
AUDIT
PROCEDURES W
PRe
f
FS
ASSE
RTION
TO
BEDON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Obtain aging schedule of accounts
receivable and
a. Check totals.
b. Check if the balance reconciles with
the general ledger control account.
c. Trace individual balances to the
subsidiary ledger.d. Test the accuracy of the aging of
accounts
e. Check non-trade accounts
erroneously included in customers
accounts.
f. Investigate and reclassify significant
credit balances.
g. Verify whether the schedule contains
the following basic information:
Name of debtor
Address
Balance of account
Age of account balance
Credit terms agreed upon,
including limit of credit
Referrals for legal action
C
EO
CEO
C
EO
C
EO
C
EO
C
EO
VR
ROVM
-
7/27/2019 Audit Programs
32/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.2 Test accuracy of balances appearing in the
subsidiary ledger. Check totals in the
subsidiary ledger. Trace samples to
underlying records.
C
EO
1.3 Confirm accuracy of individual balances by
direct communication with debtors on a
test basis. (See confirmation procedures.)
a. Investigate exceptions reported by
C
EO
the debtors and discuss with
concerned for proper disposition.
b. If the request does not produce areply from the customer, perform
extended procedures, such as:
Review collections after year-
end;
Check supporting documents;
Discuss the account with
concerned official.
c Prepare a summary of confirmation
results.
VR
EO
EO
VR
VM
C
EO
1.4 Review correspondence with debtors for
possible adjustments.
EO
VM
1.5 Request the legal office for the status of
accounts referred to them for collections
VR
1.6 Take note of deficiencies, if any. Prepare
and issue AOM.
-
7/27/2019 Audit Programs
33/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
2.1 Test propriety of cut-off:
a. Examine sales recorded several days
before and after the balance sheet
date and ascertain whether the sales
was recorded in the proper period.
b. Verify subsequent collection of
receivable. Investigate the natureand origin of any unusually large
balances in the accounts.
VM
C
EO
VM
EO
VR
2.2 Review entries in the general ledger on a
test basis.C
EO
VR
For debits to the account:
a. Trace postings to the subsidiary ledger,
JEVs, supporting billing statements,
invoices or other documents.
b. Regularityc. Authorization and approval
d. Validity
e. Accuracy
f. Numerical sequence of bills and
invoices
For credits to the account :
a. Trace postings to the JEV, Report of
Collections and Deposits (RCD) and
Cash Receipt Journal (CRJ)/GJ.
C
EO
2.3 Take note of deficiencies, if any. Prepare
and issue AOM.VR
-
7/27/2019 Audit Programs
34/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.1 Perform analytical procedures, like:
a. Accounts Receivable turnover.
Compute the turnover of receivables
and compare it with that of the
preceding year and indicating
averages. Obtain explanation from
agency for unusually low turnover
rate.
b. Ratio of accounts written off tobalance of accounts receivable.
Compare with prior year and obtain
managements
VM
VM
3.2 Compare a sample of shipping documents
to the related invoices for orders which
have been shipped but not billed.
C
EO
4.1 Examine the entry recording the current
years provisions and the procedures
used by the client in computing theallowance for doubtful accounts.
VR
VM
4.2 Where provisions are made by the use offormula based on the aged listing,
determine by reference to the details of
the agencys procedures whether the
basis is:
a. consistent with prior years;
b. appropriate to the circumstances of
the business; and
c. in accordance with the accountingpolicy.
Va/L
R
VM
4.3 Trace the account Bad debts expense to the
general ledger.
-
7/27/2019 Audit Programs
35/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
4.4 Check accuracy of agencys computation
of bad debts.C
VR
VM
4.5 Evaluate the reasonableness of the basis
of allowance for doubtful
accounts, loss experience of prior year,
data on subsequent collections, opinionof credit manager and collection lawyers,
results of circularization, and other
pertinent information.
VR
VM
4.6 Review individual balances and age ofaccounts and evaluate accounts that
should be written off.
C
EO
VM
4.7 Obtain and examine the list of debts
written off during the year.C
EO
VM
4.8 Check totals and verify whether
debts written off are no longer included
as part of receivable
C
EO
VM
4.9 Inquire if continuous follow up is made on
debts written off and verify whether there
are collections received and these are
properly accounted for.
C
EO
VM
4.10 Check whether the list of debts
written off is properly kept and
controlled.
VR
4.11 Take note of deficiencies, if any. Prepare
and issue AOM.
-
7/27/2019 Audit Programs
36/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
5.1 Review the agencys legal basis like
Circulars and / or Board
Resolutions on provision for doubtful
accounts and writing off bad debts:
a. Examine proper authorization of
provision for doubtful accounts;
b. Examine proper authorization for alldebts written off.
VR
VM
VRVM
6.1 Review adequacy of disclosures made on
provision for doubtful accounts and
writing off bad debts with those required
by generally accepted accounting
principles. There should
VR
RO
PD
be disclosure on the pledging or
assigning of accounts receivable.
Evidence of such activities can also beobtained from a review of the minutes of
board of directors meetings and inquiry
from management.
6.2 Check whether the account is presented
in the balance sheet as current assets.
PD
6.1 Take note of deficiencies, if any. Prepare
and issue AOM.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
-
7/27/2019 Audit Programs
37/491
1. Notes Receivable
NAME OF AGENCYAUDIT PROGRAM
FOR THE PERIOD ________________
NOTES RECEIVABLE
( Account Code 122 )
Account Description: The account Notes Receivable is used to record the value of
promissory notes, time drafts, trade acceptances and other negotiable short-term
instruments from trade debtors.
Audit Objectives:
1. To determine whether receivables represent valid claims against debtors and otherparties.
2. To determine whether all notes receivables are owned by the entity as of balance sheet
date.
3. To determine whether all valid receivables are completely and properly recorded.
4. To determine whether the related allowance for doubtful notes is reasonably provided.
5. To determine whether the presentation and disclosure of notes receivables is adequate
including the reporting of any receivables pledged as collateral and the related party
receivables.
Assertions: Existence or Occurrence (EO ), Rights and Obligation (RO ), Completeness ( C
), Valuation or Measurement ( VM), Validity/Legality or Regularity ( VR ) Presentation
and Disclosure (PD ).
AUDIT
PROCEDURES W
P
Ref
FS
A
SSERTION
TO
BE
DONE
BY
TIME
FRAME
REMARKS
DATESTART
ED
DATECOMPLE
TED
1.1 Prepare or obtain a Schedule of the Notes
Receivable as of balance sheet date.
C
EO
-
7/27/2019 Audit Programs
38/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.2 Trace beginning balance appearing in the
GL to prior years working paper.
C
EO
1.3 Check the balances of the schedules against
the GL.C
EO
1.4 Verify the correctness of postings in the
SL through the General Journal (GJ) tothe journal entry voucher (JEV).
C
EO
1.5 Check totals in the GL and SL. C
EO
1.6 Send confirmation letters to debtors. (See
confirmation procedures for the steps to
be followed.) Include in each request for
confirmation the following: balance ofthe principal, date, maker, due date,
interest rate, date through which interest
has been paid and collateral, if any.
C
EO
RO
2.1 Examine selected debits andcredits after balance sheet date to
determine whether there are unrecorded
notes receivable and collections for the
year under audit but which were
erroneously taken up in the subsequent
year.
CEO
VM
-
7/27/2019 Audit Programs
39/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
2.2 Review the entries in the GL.
For debits to the account:
Trace postings to the subsidiary
ledger, JEVs, supporting promissory
notes and other documents.
Examine individual source
documents such as promissory notes
or other documents for:
C
EO
RO
C
EOVa/R
L
Regularity
Authorization and approval
Validity
Accuracy
For credits to the account:
Trace postings to the JEV,
Report of Collections and
Deposits (RCD) and CashReceipts Journal (CRJ)/GJ.
C
EO
3.1 Perform analytical procedures like notes
receivable turnover. Compute the
turnover of receivables and compare it
with that of the preceding year indicating
averages. Obtain explanation from
agency for unusually low turnover rate.
C
EO
VM
3.2 Compare a sample of shipping documents
to the related invoices for orders which
have been shipped but not billed.
C
EO
VM
-
7/27/2019 Audit Programs
40/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
4.1 Examine and verify the correctness of the
aging schedule of debtors balances as of
balance sheet date. Note down long
outstanding, dormant and unusually large
balances in the accounts. Investigate the
reasons.
C
EO
RO
VM
4.2. Examine promissory notes and determine
whether the terms andconditions were strictly enforced.
C
EO
VR
VM4.3 Review allowance provided for notes.
Agencies engaged in business in in
which note transactions are
C
EO
VR
VM
voluminous normally set up a separate
allowance for doubtful notes. Agencies
accepting only a few notes normally
provide an amount in the allowance for
doubtful accounts to take care of possible
note losses.
4.4 For notes written off during the year,
examine notes and approval of write off.
C
EO
VR
VM
4.5 Check whether complete records are
maintained for notes written off and are
kept by a responsible employee.
C
EO
4.6 Ensure that a complete follow up of noteswritten off is made and collections
received are properly accounted for.
C
EO
VM
4.7 Follow up subsequent collection of notes
and the corresponding interest.C
EO
VM
4.8 Examine collateral and determine their
adequacy to secure the notes.
VR
RO
-
7/27/2019 Audit Programs
41/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
5.1 Check whether the account is presented
in the balance sheet as current assets
except for long-term notes. Notes
receivable may either be combined with
or separated from accounts receivable.
See that it conforms to the provisions of
the NGAS.
VR
PD
5.2 Review adequacy of disclosures madewith those required by generally
accepted accounting principles. Thereshould be disclosure of the pledging or
assigning of notes. Evidence of such
activities can also be obtained from a
VR
RO
PD
review of the minutes of board of
directors meetings and inquiry from
management.
5.3 Take note of all the deficiencies. Prepare
and issue AOM.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
-
7/27/2019 Audit Programs
42/491
2. Due from Officers and Employees
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
DUE FROM OFFICERS and EMPLOYEES
( Account Code 123 )
Account Description: The account Due from Officers and Employees is used to record the
amount of cash advances granted for official travels and other collectibles from
government agencys officers and employees.
Audit Objectives:
1. To determine whether the account represents valid claims of the agency.
2. To determine whether all valid accounts are completely and properly recorded.
3. To determine whether the reported balance of the account at balance sheet date is
realizable.
4. To determine whether all transactions complied with the existing rules and
regulations and policies of the agency.5. To determine whether the account is properly presented and adequate
disclosure is made in the financial statements.
Assertions: Existence or Occurrence (EO ), Completeness ( C), Valuation or Measurement( VM), Validity/Legality or Regularity ( VR ) Presentation and Disclosure (PD ).
-
7/27/2019 Audit Programs
43/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.1 Confirm individual balances by direct
communication with officers and
employees on a test basis. (See
confirmation procedures for the steps to
be followed.)
C
EO
RO
1.2 Review correspondence with officers and
employees for possible adjustments.
VR
RO
1.3 Request the legal office for the status of
accounts referred to them for collections.
VR
1.4 Trace the account balance to the trial
balance and to the general ledger (GL).C
EO
1.5 Trace the beginning balance appearing in
the GL to prior years working paper.
C
EO
1.6 Obtain aging schedule of the accountDue from Officers and Employees as of
balance sheet date.
C
EO
1.7 Check totals/footings and compare with
the GL balance of the account.C
EO
1.8 Check the details of schedule against the
subsidiary ledgers (SL).
C
EO
1.9 Test accuracy of balances appearing in the
SL of each officer and employee with
advances. Foot and cross foot the
subsidiary ledgers.
C
EO
1.10 Verify the correctness of postings in the
SL through the General Journal (GJ) to
the Journal Entry Voucher (JEV).Review entries in the GL on a test basis.
-
7/27/2019 Audit Programs
44/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
For debits to the account, examine the
individual voucher and supporting
document for:
regularity and validity of supporting
document
authorization/approval
correctness of computation
For credits to the account, examine the
liquidation report and its supporting
documents for:
regularity and validity of supporting
documents
authorization and approval
correctness of computation
2.1 Compute the turn-over rate of receivables
and compare it with that of the precedingyear. Obtain explanation frommanagement for unusually low turn over
rate.
C
EOVR
3.1 Examine the entry recording the current
years provisions and the procedures
used by the client in computing the
allowance for doubtful accounts.
C
EO
VM
-
7/27/2019 Audit Programs
45/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.2 Where provisions are made by the use of
formula based on the aging schedule,
determine by reference to the details of
the agencys procedures whether the
basis is :
a. consistent with prior years;
b. appropriate to the circumstances of
the business; andc. in accordance with the accounting
policy.
EO
VR
VM
3.3 Trace bad debts expense to the general
ledger.C
EO
VM
3.4 Check accuracy of agencys computation
of bad debts
C
EO
VM
3.5 Evaluate the reasonableness of the basis
of allowance for doubtful
C
EO
accounts, loss experience of prior year,data on subsequent collections, opinion
of credit manager and collection lawyers,
results of circularization, and other
pertinent information.
VRVM
3.6 Review individual balances and age of
accounts and evaluate accounts that
should be written off.
C
EO
VM
3.7 Obtain and examine list of debts writtenoff during the year.
C
EO
VM
3.8 Check totals and verify whether bad debts
written off are no longer included as part
of receivable.
C
EO
VM
-
7/27/2019 Audit Programs
46/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.9 Check whether the list of debts written off
is properly kept and controlled.
C
Va/L
R
3.10 Inquire if continuous follow up is made on
debts written off and verify whether there
are collections received and these are
properly accounted for.
C
EO
4.1 Review the agencys legal basis likeCirculars and/or Board Resolutions and
accounting manuals and policy on:
Provision for doubtful accounts
Writing off bad debts
Liquidation of cash advances
VRVM
5.1 Review adequacy of disclosures made
with those required by
generally accepted accounting principles.
VR
PD
5.2 Check whether the account is presented
in the balance sheet as current assets.
PD
5.3 Note abnormal balances which when taken
together represent a significant
amount and analyze if reclassification is
necessary.
C
EO
VR
5.4 Verify whether the inclusion in the balance
of dormant/non-moving accounts and thedoubtful collectibility thereof are
adequately disclosed .
PD
5.5 Take note of deficiencies, if any. Prepare
and issue AOM.
-
7/27/2019 Audit Programs
47/491
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
4. Loans Receivable-GOCCs (124); Loans Receivable-LGUs (125) ; Loans
Receivables-Others (126)
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
LOANS RECEIVABLE - _________
( Account Code _____ )
Account Description: The account Loans Receivable is used to record the amount of loansdue from GOCCs, LGUs and entities other than GOCCs and LGUs.
. Audit Objectives:
1. To determine whether loans receivable represents valid claims of the agency.
2. To determine whether all loans receivable are owned by the agency as of audit date.3. To determine whether all valid loans receivable are completely and properly recorded.
4. To determine whether the related allowance for doubtful accounts is reasonably provided
and properly recorded.
5. To determine whether all transactions complied with the existing rules and regulations
and policies of the agency.
6. To determine whether the account is properly presented in the financial statements and
adequate disclosure is made.
-
7/27/2019 Audit Programs
48/491
Assertions: Existence or Occurrence ( EO ), Rights and Obligation (RO) , Completeness (
C ), Valuation or Measurement ( VM ), Validity/Legality or Regularity ( VR )
Presentation and Disclosure (PD ).
AUDITPROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Confirm individual balances by direct
communication with debtors. (See
confirmation procedures for the steps to
be followed.)
C
EO
RO
1.2 Trace the FS balance to the trial balance
and to the general ledger (GL).
C
EO
1.3 Trace the beginning balance appearing
in the GL to prior years working paperC
EO
1.4 Obtain aging schedule of the
account as of balance sheet date.
C
EO
1.5 Check totals/footings and compare with
the GL /SL balances of the account.
C
EO
1.6 Check the details of the schedule against
the subsidiary ledgers (SL).C
EO
1.7 Verify the correctness of postings in the
SL through the General Journal (GJ) to
the Journal Entry Voucher (JEV).
C
EO
2.1 Test propriety of cut-off:
a. Examine sales recorded a few days
before and after the balance sheetdate and verify whether the sales
were recorded in the proper period.
b. Verify subsequent collection of
receivable. Investigate the nature
and origin of any unusually large
balances in the accounts.
C
EOVM
C
EO
VM
-
7/27/2019 Audit Programs
49/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
2.2 Review entries in the general ledger on a
test basis.
For debits to the account:
Trace postings to the subsidiary
ledger, JEVs, supporting billing
statements, invoices or other documents.
Examine individual source documents
such as billing statements, invoices or
other documents for:
Regularity
Authorization and approval
Validity
Accuracy
Numerical sequence of bills and
invoices
For credits to the account
Trace postings to the JEV, Report of
Collections and Deposits (RCD) and
Cash Receipt Journal (CRJ)/GJ.
Compute the turn-over rate of
receivables and compare it with that of
the preceding year. Obtain explanation
from management for unusually low turn
over rate.
Examine selected debits and credits after
balance sheet date to determine whether
there were unrecorded loans receivable
and collections for the year under audit
but which were erroneously taken up in
the subsequent year.
-
7/27/2019 Audit Programs
50/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.1 Examine and verify the correctness of the
aging schedule of debtors balances as of
Balance Sheet date.
Note down long outstanding, dormant and
unusually large balances in the accounts.
Investigate the reasons.
3.2 Examine the entry recording the current
years provisions and the proceduresused by the client in computing the
allowance for doubtful accounts.
3.3 Where provisions are made by the use of
formula based on the aged listing,
determine by reference to the details of
the agencys procedures whether the
basis is:
a. consistent with prior years;
b. appropriate to the circumstances of
the business; andc. in accordance with the
accounting policy.
3.4 Trace bad debts expense to the general
ledger.
3.5 Check accuracy of agencys computation
of bad debts.
3.6 Evaluate the reasonableness of the basis of
allowance for doubtful accounts, lossexperience of prior year, data on
subsequent collections, opinion of credit
manager and collection lawyers, results
of circularization, and other pertinentinformation.
C
EOVa/L
R
VM
-
7/27/2019 Audit Programs
51/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.7 Review individual balances and age of
accounts and evaluate accounts that
should be written off.
C
EO
RO
3.8 Obtain and examine list of debts written off
during the year.C
EO
3.9 Check totals in the list and verify whether
debts written off are no longer included
as part of receivable.
C
EO
RO
3.10 Check whether the list of debts written
off is properly kept and controlled.
C
3.11 Inquire if continuous follow up is madeon debts written off and verify whether
there are collections received and these
are properly accounted for.
C
EO
VM
4.1 Review the agencys legal basis like
Circulars and/or Board Resolutions on
provision for doubtful accounts and
writing off bad debts.
VR
4.2 Examine Memorandum of Agreement /
Letter of Authority and determine
whether the terms and conditions were
strictly enforced.
VR
5.1 Check whether the account is presented in
the balance sheet as current assets except
for long-outstanding loans receivable.
See that it conforms with the provisionsof the NGAS.
VR
PD
5.2 Verify whether the inclusion in the
balance of dormant/non-moving accounts
and the doubtful collectibility thereof
are adequately disclosed in the financial
statements.
PD
-
7/27/2019 Audit Programs
52/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
5.3 Take note of deficiencies, if any. Prepare
and issue AOM.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
-
7/27/2019 Audit Programs
53/491
5. Real Property Tax Receivable ; Special Education Tax Receivable
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
REAL PROPERTY TAX RECEIVABLE
( Account Code 127)
SPECIAL EDUCATION TAX RECEIVABLE
( Account Code 128 )
Account Description: The account Real Property Tax (RPT) Receivable is used to record the
amount of basic real property tax due from real property owners.
The account Special Education Tax (SET) Receivable is used to record the amount of
additional levy on real property tax due from real property owners for the Special
Education Fund..
Audit Objectives:
1. To determine whether the RPT/SET receivables
represent valid claims of the agency.
2. To determine whether all receivables are owned by the
agency as of balance sheet date.
3. To determine whether all valid RPT/SET receivables are
completely and properly recorded.
4. To determine whether the reported balances of the
accounts at balance sheet date are realizable.
5. To determine whether the accounts are properly
presented and adequately disclosed in the financial statements..
Assertions: Existence or Occurrence (EO ), Rights and Obligation ( RO ) , Completeness (
C ), Validity/Legality or Regularity ( VR ), Valuation or Measurement ( VM ),Presentation and Disclosure (PD ).
-
7/27/2019 Audit Programs
54/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.1 Confirm individual balances on a test
basis. (See confirmation procedures for
the steps to be followed.)
C
EO
1.2 Trace the FS balance to the trial balance
and to the general ledger (GL).
C
1.3 Trace beginning balance appearing in the
GL to prior years working paper.C
EO
1.4 Obtain Schedule of the account. C
EO
1.5 Check totals/footings and compare with the
GL balance of the account.
C
EO
1.6 Check the details of the schedule against
the subsidiary ledgers (SL).C
EO
1.7 Verify the correctness of postings in the SL
through the General Journal (GJ) to the
Journal Entry Voucher (JEV).
C
EO
1.7 Check footings and cross footings of the
GL and SL.
C
EO
2.1 Check whether collections after the balance
sheet date are recorded in the proper
period .
C
EO
2.2 Examine dishonored checks for several
days before and after balance
sheet date to determine whether anysignificant adjustments are necessary at
balance sheet date.
C
EO
-
7/27/2019 Audit Programs
55/491
-
7/27/2019 Audit Programs
56/491
-
7/27/2019 Audit Programs
57/491
-
7/27/2019 Audit Programs
58/491
-
7/27/2019 Audit Programs
59/491
6. Interest Receivable
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
INTEREST RECEIVABLE
( Account Code 129)
Account Description: The account Interest Receivable is used to record the amount of
interest earned and due from short term/long term investments.
Audit Objectives:
1. To determine whether interest receivable represents valid claims of the agency.
2. To determine whether all receivables are owned by the agency as of balance sheet date.3. To determine whether all valid receivables are completely and properly recorded.
4. To determine whether the related allowance for doubtful accounts is reasonably
provided.
5. To determine whether the account is properly presented and disclosed in the financialstatements.
Assertions: Existence or Occurrence (EO ), Rights and Obligation ( RO ) , Completeness (
C ), Valuation or Measurement ( VM ), Validity/Legality or Regularity ( VR ),Presentation and Disclosure (PD ).
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Confirm individual balances on a test
basis. (See confirmation procedures for
the steps to be followed.)
EO
RO
1.2 Trace the beginning balance appearing in
the GL to prior years working paper.
C
EO
1.3 Obtain aging schedule of the account as
of balance sheet date.
C
EO
-
7/27/2019 Audit Programs
60/491
-
7/27/2019 Audit Programs
61/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.1 Perform analytical procedures like
accounts receivable turnover. Compute
the turnover of receivables and compare
it with that of the preceding year
indicating averages. Obtain explanation
from agency for unusually low turnover
rate.
Analyze the aging schedule of debtors
balances as of balance sheet date. Take
note of long outstanding, dormant andunusually large balances in the accounts.
C
VR
VM
C
EOVR
RO
VM
4.2 Analyze the entry recording the current
years provisions and the procedures
used by the client in computing the
allowance for doubtful accounts.
C
EO
VM
4.3 Where provisions are made by the use of
formula based on the aged listing,
determine by reference to the details of
the agencys procedures whether thebasis is:
a. consistent with prior years;
b. appropriate to the circumstances of
the business; and
c. in accordance with the accounting
policy.
Trace bad debts expense to the general
ledger.
Check accuracy of agencys computationof bad debts.
Evaluate the reasonableness of the basis
of allowance for doubtful accounts, loss
experience of prior year, data on
subsequent collections
C
EO
VR
VM
C
EO
CVM
C
EO
VR
RO
VM
-
7/27/2019 Audit Programs
62/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
collections, opinion of credit manager and
collection lawyers, results of
circularization, and other pertinent
information.
Review individual balances and age of
accounts and evaluate accounts that
should be written off.
Obtain and examine list of debts writtenoff during the year.
Check totals in the list and verify
whether debts written off are no longerincluded as part of receivable.
Check whether the list of debts written
off is properly kept and controlled.
Inquire if continuous follow up is made
on debts written off and check whether
there are collections received and theseare properly accounted for.
C
EO
RO
CEO
C
EO
RO
C
EO
C
EO
RO
5.1 Check the propriety of the presentation of
the account. See that it conforms to the
provisions of the NGAS.
C
VR
5.2 Check whether adequate disclosure has
been made in the financial statements.
PD
5.3 Take note of all discrepancies and prepareAOM.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
-
7/27/2019 Audit Programs
63/491
-
7/27/2019 Audit Programs
64/491
-
7/27/2019 Audit Programs
65/491
-
7/27/2019 Audit Programs
66/491
-
7/27/2019 Audit Programs
67/491
-
7/27/2019 Audit Programs
68/491
-
7/27/2019 Audit Programs
69/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
3.1 Perform analytical procedures, like:
a. Accounts Receivable turnover.
Compute the turnover of Due from
GOCCs and compare it with that of
the preceding year indicating
averages. Obtain explanation from
agency for unusually low turnover
rate.
b. Ratio of accounts written off to
balance of Due from GOCCs.
Compare with prior year and obtain
managements explanation forunusually high ratio.
C
EO
RO
C
EO
RO
3.2 Review the aging schedule of the account. C
EO
VM
4.1 Analyze the ratio of dormant/non-moving
accounts to total receivables.
C
EOVM
4.2 Select samples of long outstanding or
overdue accounts.
EO
VM
4.3 Review the subsidiary details and inquire
from management what actions have
been taken on dormant and non-moving
accounts.
C
EO
VM
4.4 Assess the probability of collection andevaluate the impact on the financial
position of the agency.
C
EO
VM
5.1 Check whether the account is presented in
the balance sheet as current assets and it
conforms to the provisions of the NGAS.
VR
PD
-
7/27/2019 Audit Programs
70/491
-
7/27/2019 Audit Programs
71/491
-
7/27/2019 Audit Programs
72/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
1.3 Trace the beginning balance appearing in
the GL to prior years working paper.
C
EO
1.4 Secure a schedule of Due from LGUs
which should contain the following
information:
Name of the agency
Address
Balance of account
Date reported
Age of the accounts balance
Referral for legal action, write off/
condonation
C
EO
RO
1.5 Check totals of schedule and compare
with GL balance.C
EO
1.6 Check the details of the schedule of Due
from LGUs against the SL.
C
E
1.7 Verify the correctness of postings in the
SL through the General Journal (GJ) to
the Journal Entry Voucher (JEV).
C
EO
2.1 Examine individual source documents
such as JEVs, DVs, MOA and other
documents for:
Regularity
Authorization and approval
Validity
Accuracy
Verify whether the required rules andregulations are incorporated in the MOA
(COA Circular # 96-003 dated February
27, 1996.)
C
EO
VR
-
7/27/2019 Audit Programs
73/491
-
7/27/2019 Audit Programs
74/491
-
7/27/2019 Audit Programs
75/491
10. Due from Non-Governmental Organizations/ Peoples Organizations
NAME OF AGENCY
AUDIT PROGRAM
FOR THE PERIOD ________________
DUE FROM NON-GOVERNMENTAL ORGANIZATIONS/
PEOPLES ORGANIZATIONS
( Account Code 139)
Account Description: The account Due from Non-Government Organizations
(NGOs)/Peoples Organizations (POs) is used to record the release of funds entrusted to
NGOs/POs for the implementation of government projects.
Audit Objectives:
1. To determine whether Due from NGOs/POs represents valid claims against debtors andother parties.
2. To determine whether all receivables are owned by the entity as of balance sheet date.
3. To determine whether all valid Due from NGOs/POs are completely and properly
recorded.4. To determine whether the reported balances of the account at balance sheet date are
realizable.
5. To determine the propriety of the accounts presentation in the financial statements and
the adequacy of disclosure.
Assertions: Existence or Occurrence (EO ), Rights and Obligation ( RO ) , Completeness (
C ), Validity/Legality or Regularity ( VR ), Valuation or Measurement ( VM ),Presentation and Disclosure (PD ).
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
E
BY
TIME
FRAME
REMAR
KSDATE
START
ED
DATE
COMPLE
TED
1.1 Prepare confirmation requests for the
selected NGOs/POs.C
EO
1.2 Trace the FS balance to the trial balance
and to the general ledgers (GL).
C
EO
-
7/27/2019 Audit Programs
76/491
-
7/27/2019 Audit Programs
77/491
-
7/27/2019 Audit Programs
78/491
-
7/27/2019 Audit Programs
79/491
-
7/27/2019 Audit Programs
80/491
-
7/27/2019 Audit Programs
81/491
-
7/27/2019 Audit Programs
82/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
5.2 Check whether the inclusion in the
balance of dormant/non-moving accounts
and the doubtful collectibility thereof are
adequately disclosed.
PD
5.3 Take note of deficiencies, if any. Prepare
and issue AOM.
PREPARED BY : REVIEWED BY : APPROVED BY :
Date Date Date
12. Receivable- Disallowances/Charges
-
7/27/2019 Audit Programs
83/491
-
7/27/2019 Audit Programs
84/491
-
7/27/2019 Audit Programs
85/491
-
7/27/2019 Audit Programs
86/491
-
7/27/2019 Audit Programs
87/491
-
7/27/2019 Audit Programs
88/491
-
7/27/2019 Audit Programs
89/491
AUDIT
PROCEDURES W
P
Re
f
FS
ASSERTION
TO
BE
DON
EBY
TIME
FRAME
REMAR
KS
DATE
STARTED
DATE
COMPLETED
2.1 Obtain subsidiary ledger (SL) of treasury
bills (T-bills) as of balance sheet date.
a. Prove mathematical accuracy of the
SL.
b. Compare the balance appearing in the
SL with the GL and the reported
balance in the balance sheet.
C
EO
2.2 In the absence of management document
detailing the movements (increase and
decrease) of the account, prepare
working paper (INV-TB1.1)
substantiating the placements and
termination/maturities of T-bills for the
period.
C
EO
2.3 On a test basis, vouch the placements(debits) and terminations/maturities
(credits) of T-bills using the sampling
method approved by COA.
a. Trace placements and terminations /
maturities to the journal vouchers
(JVs) and GL.
b. Check mathematical accuracy.
c. Check whether placements are debited
and terminations /maturities are
credited to the corresponding bank
accou