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 are
reasonable and valid.
c.)To know whether errors or fraud are committed when recording the amount
of cash.
Audit Procedures
Done by
Date
W/P
Ref
1. Discuss and document with the field treasurer
the procedures for the receiving and
disbursements of cash.
a.) Sources of cash
b.) Frequency of deposits
c.) Who makes the deposits
d.) The level of cash received
e.) The nature and documentation of
expenditures (invoices, check requests, etc.)
f.) Authorization procedures
2. Determine whether the level of cash held in the
field and in the office is appropriate.
3. For petty cash funds:
a.) Determine if an accurate petty cash voucher
is maintained.
b.) Conduct a physical cash count.
c.) Determine whether the petty cash funds are
restricted and know who has the access to
these funds.

4. For all checking accounts:

a.) Determine the number of signatures required
for each check.
b.) Determine the process for which cash is
received for mission operations.
c.) Obtain bank statements for each account.
d.) Determine the timing and frequency of the
preparation of bank reconciliations.
e.) Summarize a listing of deposits from the bank
statements and reconcile the amounts
reported and obtain other sources of income.
f.) Obtain bank reconciliation and test for
accuracy.
g.) Verify whether a second party reviews bank
reconciliation monthly.
AUDIT PROGRAM FOR CASH

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
further details
M
- As the recalculated
difference below posting scope. p/f/i
Based on the procedures performed and the results obtained, it is in
my opinion that the objectives listed in this audit program have been
achieved.

Performed by
___________

_____________________________________________

Date

Reviewed and approved by __________________________________

___________

Date

Conclusions:
Comments:

AUDIT PROGRAM FOR THE AMOUNTS DUE FROM OTHERS

(NOTES, 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 of receivables.

Audit Procedures
1. Discuss with the treasurer the
nature, purpose, and term of
amounts due from others. The
recording of these amounts
should be in accordance with
the accepted accounting
standards.

Done
by

Date

W/P
Ref

2. Examine any note agreements.

3. If possible, verify the balance
with the other party.
4. Determine whether the
interest is being properly
computed and collected on a
timely basis.
5. Determine whether loans,
advances, etc. were properly
authorized by personnel.
6. Evaluate any personal account
balances to determine
reasonableness and estimated
timing of collection.

Tick Mark Legend:

A-G
M

- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
- Refer to W/P L-100 for further details
- As the recalculated difference below posting scope. p/f/i

Based on the procedures performed and the results obtained, it is in

my opinion that the objectives listed in this audit program have been
achieved.

Performed by
___________

_____________________________________________

Date

Reviewed and approved by __________________________________

___________

Date

Conclusions:
Comments:

AUDIT PROGRAM FOR INVENTORY

Audit Objectives:

a.)To determine whether the inventory reflected 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,
extended, footed and summarized and the totals are properly
reflected in the accounts.
c.) Inventory is valued in accordance with generally accepted
accounting principles consistently applied at the lower of cost or
market.
d.) To determine whether excess, slow-moving, obsolete and defective

inventory is reduced to net realizable value.

e.)To determine if inventory is properly classified in the balance sheet
and disclosure is made of pledged or assigned inventory, major
categories of inventory and the methods used to value inventory.

Audit Procedures
1. Observe the companys physical
inventory and use the separate
inventory observation program.
2. Discuss the valuation procedures
used by the client to determine
any changes in specific products,
changes in production methods,
accounting policies used,
methods used to accumulate cost
of inventory items, the pricing
policies and procedures of the
company, results of physical
observation during the year and
their effects on inventory
valuation.
3. Test the clerical accuracy of the
Companys physical inventory
summary.

a.)Trace test counts recorded during

the observation to the physical
inventory summary.
b.)On a test basis, compare the tag
or count sheet control numbers
obtained during the observation

Done by

Date

W/P
Ref

to those used to compile the

inventory summary. Investigate
any tags or count sheets added
or deleted.
c.) If applicable, trace in quantities
at remote locations that were
confirmed.
d.)Test the extensions of several
items and foot the totals.
e.)Reconcile the physical inventory
summary to the general ledger
account balance. Investigate and
explain major reconciling items.

Based on the procedures performed and the results obtained, it is in

my opinion that the objectives listed in this audit program have been
achieved.

Performed by
___________

_____________________________________________

Date

Reviewed and approved by __________________________________

___________

Conclusions:
Comments:

AUDIT PROGRAM FOR THE PROPERTY, PLANT AND

EQUIPMENT

Audit Objectives:
a.)To determine whether all assets under the Property, Plant and
Equipment line item really fall under such asset classification.

Date

 Land held for undetermined use is not recorded under PPE but
under the Investment Property line item.
Properties for sale are not recorded as PPE but Inventory.
b.)To determine whether the process of recording and measuring the
items in the PPE are reasonable and valid.
The method of computing depreciation reflects the manner by
which the asset is used.
Whether the method of measurement is in accordance with the
Philippine GAAP.
Whether such items are measured at cost or fair value
Whether revaluation is elected as the subsequent measurement
of such items.
c.) To determine whether certain items in the PPE are mortgaged to
creditors.
d.)To determine whether all items in the PPE physically exists.

Audit Procedures
1. Determine whether the entity
owns any assets (automobiles,
land, buildings, office
equipment, etc.)
2. Determine whether the listing of
all assets owned is maintained.
Obtain a copy
Review for completeness
Determine date of latest
compilation.
Verify whether the assets
are registered to a proper
authorizing body. If not,
state the reasons.
3. Determine whether the entity
has obtained adequate

Done by

Date

W/P Ref

insurance on these assets.

4. For any asset purchased,
determine whether proper
authorization was received.
5. Determine whether there is
appropriate security over
mission assets. This includes
documenting previous history of
theft.

Tick Mark Legend:

A-G
M

- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
- Refer to W/P L-100 for further details
- As the recalculated difference below posting scope. p/f/i

Based on the procedures performed and the results obtained, it is in

my opinion that the objectives listed in this audit program have been
achieved.

Performed by
___________

_____________________________________________

Date

Reviewed and approved by __________________________________

___________

Date

Conclusions:
Comments:

AUDIT PROGRAM FOR LONG-TERM DEBTS

Audit Objectives:
a.)Notes payable, long-term debt, and debt equivalents represent a
complete listing of authorized debt.
b.) Such debt is properly classified between current and long-term
portions, and required disclosures have been made.

Audit Procedures
1. Obtain or prepare an analysis of
notes payable, long-term debt,
capitalized lease obligations, and
other financing transactions or
arrangements, such as lines of
credit.
2. .
Summarize in the work
papers the information needed to
prepare any required financial
statement disclosures.
Review loan and debt
agreements and determine
if assets are pledged and if
there are any restrictive
covenants. Make financial
statement disclosure points
for pledged assets and loan
restrictions. Determine if the
company is in compliance
with restrictive covenants.
.
Examine lease
agreements and determine
if any leases should be
capitalized. Summarize in
the work papers the
financial statement

Done
by

Date

W/P
Ref

disclosures for both capital

and operating leases.
Determine the current
portion of long-term debt.
Summarize in the work
papers the disclosures for
note terms, interest rates,
and maturities over the next
five years.
3. Consider the need to apply one or
more additional procedures. The
decision to apply additional
procedures 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 judgment about
the need to obtain a further
understanding of control
activities, the assessed level of
risk of material misstatements.
4. Consider whether procedures
performed are adequate to
respond to identified fraud risk
factors. If fraud risks factors or
other conditions are identified
that require an additional audit
response, consider those risk
factors or conditions.
5. Consider whether the results of
audit procedures indicate

reportable conditions in internal

control and, if so, add to the
memo of points for the
communication of reportable
conditions.

Tick Mark Legend:

A-G
M

- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
- Refer to W/P L-100 for further details
- As the recalculated difference below posting scope. p/f/i

Based on the procedures performed and the results obtained, it is in

my opinion that the objectives listed in this audit program have been
achieved.

Performed by
___________

_____________________________________________

Date

Reviewed and approved by __________________________________

___________

Date

Conclusions:
Comments:

AUDIT PROGRAM FOR REVENUE

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, or
allowances are adequately provided for.
b.)Recorded revenue includes billings at the correct amount for
products shipped or services provided.
c.) Costs of products or services are valid, complete, and recorded
correctly as to account, amount, and period.
d.)Expenses are valid, complete, and recorded correctly as to
account, amount, and period.
e.)Revenues, cost of products or services, expenses, and
extraordinary, unusual, or infrequent items are properly
described and disclosed in the income statement.

Audit Procedures
1. Inquire of management or
review documentation
obtained previously on the
nature of the clients business
and industry and the factors
that affect operations. Inquire
about any major changes
during the period. Obtain an
understanding of the clients
revenue recognition policies
and determine that they are
in accordance with GAAP.
Inquire of management
about, and evaluate, changes
in revenue recognition
policies and significant,
unusual, and complex
transactions occurring at or
near year end.

Done by

Date

W/P Ref

2. Perform an analytical test of

sales by obtaining for the
work papers a schedule
summarizing sales by major
product line and geographic
location for the year
compared to prior year
amounts, budgets, or other
expectations. Analyze this
schedule and critically
evaluate and document
explanations for significant
differences that are unusual
in amount or nature.
3. .
Obtain or prepare for the
work papers an analysis of
sales, cost of sales, and gross
profit summarized by product
line, department, location, or
other meaningful division, in
total and by meaningful
interim period (monthly,
quarterly, etc.).
4. Test the analysis by selecting
a few categories and
compare the amounts shown
with those recorded in the
sales journal. Trace the sales
journal balances to the
general ledger.
5. Review the analysis and
identify any unusual trends or
variations within the period or
compared to the prior period.

6. Determine the average or

standard mark-up percentage
for goods sold, if such
percentage exists. Calculate
the gross profit using the
normal percentage (with an
allowance for spoilage or
waste) and compare it to the
actual percentage realized
during the period. Document
the comparison.

7. Obtain and document sound

business reasons for large or
unusual differences in interim
or total amounts included in
the analysis. Relate sales by
product line, if available, to
inventory categories for
possible overstock or
obsolete inventory items.
8. For specific selected expense
accounts that are sensitive or
subject to unusual risk, select
specific individual large
disbursements and examine
the documents supporting
such transactions. This should
be considered for repairs and
maintenance, legal fees,
consulting fees, and similar
accounts, and any other
expenses that should be

vouched because the auditor,

or his firm, has tax return
preparation responsibility.

9. Review and document the

large or unusual differences
in specific expense 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 document
explanations for the
variations noted.

Tick Mark Legend:

A-G
M

- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
- Refer to W/P L-100 for further details
- As the recalculated difference below posting scope. p/f/i

Based on the procedures performed and the results obtained, it is in

my opinion that the objectives listed in this audit program have been
achieved.

Performed by
___________

_____________________________________________

Date

Reviewed and approved by __________________________________

___________

Date

Conclusions:
Comments:

AUDIT PROGRAM FOR EXPENDITURES

Audit Objectives:
a.)To determine the appropriate amount of expenditures of the
entity.
b.)To determine whether the method of measurement of expenses is
in accordance with the company policy or the GAAP.
c.) To determine the assumptions considered in measurement of
expenses are correct.
d.)To determine whether certain research and development
expenditures are expensed outright or capitalized.
e.)To determine the nature and proper treatment of expenses
charged against revenue.

Audit Procedures
1. Review the following:
Cancelled checks for
agreement of
endorsement,
payee, amount, etc.
Supporting invoices
for agreement of
description, amount,
date and account
classification.
Proper authorization
in accordance with
the company policy.
2. Review the check register
for the prior months and
be particularly alert for
unusual items such as:
Large amounts
Payments to agency
staffs
Payments to
treasurer, director or
related persons
Payments to banks
Payments to
individuals
3. For the travel advances or
reimbursements, etc.:
a.)Discuss the procedures for
reimbursements with the
treasurer or director of the
company.
b.)Select disbursements for

Done by

Date

W/P Ref

detail review of support and

determine whether the
documentation includes:
Who incurred the
expense?
What was the purpose
of the expenditure
incurred?
When was the expense
incurred?
Where was the expense
incurred?
Why was the expense
incurred?
4. Review personal expenses
for personal medical
charges for expatriate
level staff. Agency funds
should not be used unless
with home office
authorization. This
authorization must be
documented.

Tick Mark Legend:

A-G
M

- Recalculated w/o/e
- Agreed to G/L w/o/e
- Recalculated respective to FX amount
- Refer to W/P L-100 for further details
- As the recalculated difference below posting scope. p/f/i

Based on the procedures performed and the results obtained, it is in

my opinion that the objectives listed in this audit program have been
achieved.

Performed by
___________

_____________________________________________

Date

Reviewed and approved by __________________________________

___________

Date

Conclusions:
Comments: