Audit Programs

7/27/2019 Audit Programs

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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 ).

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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


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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.


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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 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.


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Assertions : Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality or

Regularity ( VR ), Valuation and Measurement ( VM), Presentation and Disclosure (PD).

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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


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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


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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


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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


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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


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presented as Current Asset in the balance

sheet.

PD

3.2 Prepare and issue Audit Observation

Memorandum for discrepancies noted

(CA-5a).


Date Date Date

4. Petty Cash Fund

NAME OF AGENCY

AUDIT PROGRAM

FOR THE PERIOD ________________

PETTY CASH FUND


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.


11/491

2. To determine whether Petty Cash Funds are completely and properly recorded and

utilized in accordance with existing laws, rules and regulations.





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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.


Date Date Date


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 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.




Regularity (VR ) Presentation and Disclosure (PD ).

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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


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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



Sheet and disclosure is properly made.

PD

3.2 Prepare and issue AOM for discrepancies

noted.




Date Date Date


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 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.


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Assertions: Completeness ( C), Existence or Occurrence ( EO ), Rights and Obligations (

RO ), Presentation and Disclosure (PD ).

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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


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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



Sheet and any restrictions on thewithdrawal of cash balances are

adequately disclosed in the notes to


RO

PD

3.1 Prepare and issue AOM for the

discrepancies noted. (CA-11 and CA-

12).


Date Date Date

7. Cash in Bank - Local Currency, Savings Account

NAME OF AGENCY


17/491

AUDIT PROGRAM

FOR THE PERIOD ________________

CASH in BANK Local Currency, Savings Account


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 ).

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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.


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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


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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


RO

PD

3.2 Prepare and issue AOM for discrepancies

noted.

3.1 Organize working papers includingindexing and cross-referencing.


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 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.


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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).


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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



Sheet.

PD


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4.2 Prepare and issue Audit Observations

Memorandum (AOM) for noted

discrepancies

(CA-16).




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 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


Assertions: Completeness ( C), Existence or Occurrence (EO ), Valuation or Measurement

( VM), Presentation and Disclosure (PD ).


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1.1 Confirm bank balances by sending bank

confirmations to AGDBs. C

EO


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


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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


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


Memorandum (AOM) for discrepancies

noted.




Date Date Date

10. Cash in Bank - Foreign Currency, Savings Account


25/491

NAME OF AGENCY

AUDIT PROGRAM

FOR THE PERIOD ________________

CASH in BANK Foreign Currency, Savings Account


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


Assertions: Completeness ( C), Existence or Occurrence (EO ), Valuation or Measurement

( VM), Presentation and Disclosure (PD ).

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TO

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BY

TIME

FRAME

REMAR

KSDATE

START

ED

DATE

COMPLE

TED

1.1 Confirm bank balances by sending BankConfirmations to AGDB. C

EO


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.


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FRAME

REMAR

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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



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.


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.


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COMPLETED


Memorandum (AOM) for the

discrepancies noted.


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 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


Assertions: Completeness ( C ), Existence or Occurrence ( EO ), Validity/Legality orRegularity ( VR ), Valuation or Measurement ( VM), Presentation and Disclosure (PD ).


28/491

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TO

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FRAME

REMAR

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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



exchange rate as at the balance sheetdate.

C

EO

VM


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DATE

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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.


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.


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DATE

COMPLETED

4.3 Prepare summary of noted discrepancies

(CA-18, CA-19 and CA-20) and issue

AOM.


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


ALLOWANCE FOR DOUBTFUL ACCOUNTS


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.


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

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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


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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.


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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


and issue AOM.VR


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DATE

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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.


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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


and issue AOM.


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DATE

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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


and issue AOM.


Date Date Date


37/491

1. Notes Receivable

NAME OF AGENCYAUDIT PROGRAM

FOR THE PERIOD ________________

NOTES RECEIVABLE


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 ).

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A

SSERTION

TO

BE

DONE

BY

TIME

FRAME

REMARKS

DATESTART

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DATECOMPLE

TED

1.1 Prepare or obtain a Schedule of the Notes

Receivable as of balance sheet date.

C

EO


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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


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2.2 Review the entries in the GL.


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


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


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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


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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.


Date Date Date


42/491

2. Due from Officers and Employees

NAME OF AGENCY

AUDIT PROGRAM

FOR THE PERIOD ________________

DUE FROM OFFICERS and EMPLOYEES


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 ).


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DATE

STARTED

DATE

COMPLETED

1.1 Confirm individual balances by direct

communication with officers and

employees on a test basis. (See


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


SL through the General Journal (GJ) to

the Journal Entry Voucher (JEV).Review entries in the GL on a test basis.


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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



used by the client in computing the

allowance for doubtful accounts.

C

EO

VM


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3.2 Where provisions are made by the use of

formula based on the aging schedule,



basis is :



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


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


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


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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


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


and issue AOM.


47/491


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.


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 ).

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TO

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TIME

FRAME

REMAR

KSDATE

START

ED

DATE

COMPLE

TED

1.1 Confirm individual balances by direct

communication with debtors. (See


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



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


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2.2 Review entries in the general ledger on a

test basis.


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


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.


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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.


years provisions and the proceduresused by the client in computing the



formula based on the aged listing,



basis is:



the business; andc. in accordance with the

accounting policy.

3.4 Trace bad debts expense to the general

ledger.


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


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3.7 Review individual balances and age of



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


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and issue AOM.


Date Date Date


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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 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 ).


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1.1 Confirm individual balances on a test

basis. (See confirmation procedures for

the steps to be followed.)

C

EO


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


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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.


C ), Valuation or Measurement ( VM ), Validity/Legality or Regularity ( VR ),Presentation and Disclosure (PD ).

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1.1 Confirm individual balances on a test

basis. (See confirmation procedures for

the steps to be followed.)

EO

RO



C

EO

1.3 Obtain aging schedule of the account as

of balance sheet date.

C

EO


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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


used by the client in computing the


C

EO

VM


formula based on the aged listing,


the agencys procedures whether thebasis is:



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


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collections, opinion of credit manager and

collection lawyers, results of

circularization, and other pertinent

information.

Review individual balances and age of



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.


Date Date Date


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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


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


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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



the Journal Entry Voucher (JEV).

C

EO

2.1 Examine individual source documents

such as JEVs, DVs, MOA and other

documents for:

Regularity


Validity

Accuracy

Verify whether the required rules andregulations are incorporated in the MOA

(COA Circular # 96-003 dated February

27, 1996.)

C

EO

VR


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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.


C ), Validity/Legality or Regularity ( VR ), Valuation or Measurement ( VM ),Presentation and Disclosure (PD ).

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1.1 Prepare confirmation requests for the

selected NGOs/POs.C

EO


and to the general ledgers (GL).

C

EO


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5.2 Check whether the inclusion in the

balance of dormant/non-moving accounts

and the doubtful collectibility thereof are

adequately disclosed.

PD


and issue AOM.


Date Date Date

12. Receivable- Disallowances/Charges


83/491


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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

Documents

Audit Programs