1

AUDIT PROGRAM FOR CASH AND CASH EQUIVALENTS

Company Name: AMNP Company

Balance Sheet date: December 31, 2015

AUDIT OBJECTIVES

A. Determine that all cash transactions and account balances that should
be presented have been included in the financial statements
B. Determine the existence of cash at a given date
C. Ensure that the company has the right to the cash
D. Determine if the cash belongs to the company at the year-end date
E. Ensure that the balances of cash are correctly disclose in the financial
statement
AUDIT PROCEDURES

1. Request for confirmation issued to

relevant banks. It should be issued on
auditors letterhead and sent to all
banks where the client has dealings.
2. Request details of balances and other
information for request to be precise
3. Precise information must be sought
a. Balances due to or from the bank,
the letter may give the account
number, description and currency,
and should request information and
accounts closed during the period.
b. Collateral given or received,

DONE
BY

DATE

W/P REF.

c.
d.

e.
f.
g.
h.

maturity and interest terms, unused

facilities, lines of credit and any
rights of offset or other rights.
Terms and repayments conditions of
loan and overdrafts.
Contingent liabilities such as bills,
acceptance, guarantees, and
endorsements.
Asset repurchase and resale
agreements and options.
Forward currency and other
outstanding contracts.
Assets held in safe custody any
encumbrances over them
Check the replies

Cash on hand:
1. Count and verify all cash balances
simultaneously to prevent
discrepancies.
a. Count the cash without the
custodian being informed in advance
b. Control all cash funds until the
completion of the count
c. Count the cash in the presence of
the custodian
d. The record should be sign by the
custodian as evidence of agreement.
e. Agree the total to the petty cash
book balance and investigate any
differences

Tick Mark Legend:

- Recalculated w/o/e
- Recalculated respective to FX amount
- Agreed to G/L w/o/e
- 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 ACCOUNTS RECEIVABLES

Company Name: AMNP Company
Balance Sheet date: December 31, 2015

AUDIT OBJECTIVES
A. Accounts receivable are authentic obligations owed to the company at
the balance sheet date
B. Accounts receivable include all amounts owed to the company at the
balance sheet date
C. The allowance for doubtful accounts is adequate but not excessive. If
the direct write-off method is used, all significant doubtful accounts
have been written off, and the bad debt exposure in the remaining
accounts is insignificant
D. Pledged, discounted, or assigned accounts receivable are properly
disclosed. Related party receivables are properly disclosed
E. Accounts receivable are appropriately classified in the balance sheet,
and required disclosures are made

AUDIT PROCEDURES

1. Agree the balance from the individual

sales ledger account to the aged
receivables listing and vice versa
2. Trace a sample of shipping
documentation to sales invoices and into
the sales and receivables ledger
3. Complete the disclosure checklist to
ensure that all the disclosures relevant
to receivables have been made
4. Review detailed statement of financial
position to ensure all likely prepayments
have been included
a. Examine the customers account to
confirm their validity
b. Examine underlying documentation
c. Examine invoices remaining unpaid
after subsequent ones have been
paid
5. Review the reasonableness of the
allowance for the allowance of bad debts

DONE
BY

DATE

W/P REF.

6. Examine customer accounts and

compare to the previous years balance
7. Take a sample of sales invoices
a. compare prices and terms to the
authorized price list and terms
b. recalculate discounts to ensure they
have been properly calculated and
applied
8. Review for understandability the notes
relevant to receivables in the draft
financial statement
9. Read the disclosure notes to ensure the
information is accurate

Tick Mark Legend:

- Recalculated w/o/e
- Recalculated respective to FX amount
- Agreed to G/L w/o/e
- 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 INVENTORIES

Company Name: AMNP Company
Balance Sheet date: December 31, 2015

AUDIT OBJECTIVES
A. Ensure that recorded purchases and sales represents inventories brought
and sold
B. Inventories on the Statement of Financial Position represent physically
exist
C. All purchases and sales are recorded in the correct period
D. All inventory at year end is included in the Statement of Financial
Position
E. The entity has the rights to inventory recorded in the period at the year
end
F. Costs are accurately determined in accordance with accounting
standards
G. Inventory is properly classified in the accounts
H. Disclosures relating to classification and valuation are adequate and in
accordance with accounting standards
AUDIT PROCEDURES
1. Complete the disclosure checklist to
ensure that all the disclosures relevant
to inventory have been made
2. Observe physical inventory count
a. Physically inspect inventory held at
third party locations
b. review confirmations received from

DONE BY

DATE

W/P REF.

third party and match to general

ledger
3. Review the inventory listing to ensure it
is mathematically correct
4. Agree the valuation of raw materials to
invoice and price list
5. Inquire of management any obsolete
inventory that should be written down
6. Ensure that inventory has been
properly classified between raw
materials, work in process and finished
goods
7. Read the notes to the accounts to
ensure that the information is accurate
and properly presented at the
appropriate amounts

Tick Mark Legend:

- Recalculated w/o/e
- Recalculated respective to FX amount
- Agreed to G/L w/o/e
- 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 PROPERTY, PLANT AND

EQUIPMENT
Company Name: AMNP Company
Balance Sheet date: December 31, 2015

AUDIT OBJECTIVES

A. Property, plant, and equipment reflected in the accounts represent a

complete listing of capitalize cost of assets purchased, constructed or
leased by the company.
B. Property, plant, and equipment is valued at cost in accordance with
GAAP
C. The costs and related depreciation applicable to all sold, abandoned,
damaged, or obsolete property have been properly removed from the
accounts
D. The balances in the depreciation allowance accounts are reasonable,
considering the expected useful lives of the property units and
estimated salvage value.
E. Property is properly classified in the balance sheet, and liens,
significant fully depreciated assets, idle property, and property held for
investment purposes are properly disclosed.
AUDIT PROCEDURES
1. Obtain or prepare a detailed analysis of
account balances
a. Obtain an understanding of the
accounting policies relevant to
property, plant and equipment and
depreciation.

Description of accounts by
classification.
Balances at beginning of
period.
Additions and depreciation
expense during the period.
Disposals and related
adjustments to accumulated
depreciation during the period.
b. Trace the beginning and ending
balances to the general ledger and
previous audit's working papers

DONE
BY

DATE

W/P REF.

10

2. Review the balances for reasonableness

3. Test mathematical accuracy of the
analysis
4. Examine documentation and reconcile
detail record
a. examine documentation that
supports property, plant and
equipment additions.
b. Examine documentation that
supports asset disposals and related
adjustments to accumulated
depreciation
c. Reconcile the analysis to detailed
records of property, plant and
equipment
5. Determine whether the depreciation
practices followed by the company are
in conformity with GAAP
6. ascertain the completeness of property,
plant and equipment by reviewing
fluctuations in the repair and
maintenance
7. Review the procedures for ascertaining
the existence and ownership of
recorded assets
a. Examine records of leased assets,
lease agreements and other relevant
data for leases
b. Examine support for rentals under
operating leases to determine
whether leases should be capitalized
8. Identify fully depreciated assets carried
in the property records
9. Review interest capitalization
a. Examine supporting documentation
for interest capitalized during the
period
b. Inquire of management regarding
the existence of any capital projects
that require a period of preparation
before being ready for their intended

11

use.

Tick Mark Legend:

- Recalculated w/o/e
- Recalculated respective to FX amount
- Agreed to G/L w/o/e
- 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:

12

AUDIT PROGRAM FOR PREPAID, DEFERRED CHARGES,

INTANGIBLES, AND OTHER ASSETS.
Company Name: AMNP Company
Balance Sheet date: December 31, 2015

AUDIT OBJECTIVES

13

A.

B.
C.

Prepaids, deferred charges, intangibles, and other assets represent a

complete listing of the companys costs that are allocable to future
periods and that can reasonably be expected to be realized through
future operations or otherwise
Prepaids and other assets are recorded on acceptable basis and
amortized and written off properly in prior periods.
Prepaids and other assets, and their related amortizations or writedowns, are properly described and classified. The disclosures required
by GAAP for goodwill and other intangible assets are made

AUDIT ROCEDURES
1. For prepaids, deferred charges, and
intangibles:
a. Determine and properly classify the
account according to its nature and
determine cost to allocate.
b. If there are significant deferred tax
assets, test these balances when
performing the audit of income
taxes
c. Compare the current year asset
balances to the prior year asset
balances and explain any
differences.
d. Vouch significant additions to
invoices, purchase agreements,
minutes, etc.
e. Determine the reasonableness of
the remaining asset balances and
remaining amortization lives and
the amortization method used
f. Review whether goodwill and other
intangibles have been tested for

DONE
BY

DATE

W/P REF

14

impairment
g. Properly classify current from noncurrent assets. Summarize any
information needed to disclose
goodwill and other intangibles.
2. For other assets such as deposits and
cash surrender values of life insurance:
a. Vouch significant additions to
deposits.
b. Review the reasonableness of major
cash surrender values of life
insurance.
Review whether the company is
really the beneficiary or owns
the cash surrender value. If
possible, compare cash
surrender values to valuation
tables in the policy.
Inquire if there are any policy
loans against cash surrender
values. If there are loans,
consider whether they have
been appropriately accounted
for.
Consider confirming the current
status of life insurance policies.
c. Determine the proper description
and classification between current
and noncurrent assets.

3.

Consider whether procedures

performed are adequate to respond to
identified fraud risk factors.

4.

Consider whether the results of audit

procedures indicate reportable
conditions in internal control.

15

Tick Mark Legend:

- Recalculated w/o/e
- Recalculated respective to FX amount
- Agreed to G/L w/o/e
- 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 ACCOUNTS PAYABLE

Company Name: AMNP Company
Balance Sheet date: December 31, 2015

AUDIT OBJECTIVES

A. Ensure that accounts payable reflected in the balance sheet represent

authentic obligations of the entity
B. Ensure that accounts payable amounts agree with invoices or other
supporting documents and are recorded correctly as to accounts and
period
C. Accounts payable are properly classified.

16

AUDIT PROCEDURES
1. Prepare or obtain from the client a
listing of trade accounts as of the
balance sheet date
a. Test the arithmetical accuracy of the
listing and reconcile the total
balances to the general ledger
b. Review the listing for large debit
balances and determine their
nature
c. Review the listing for related-party
transactions and, if amounts are
material, segregate from trade
accounts payable to related-party
accounts payable in the financial
statements.
d. Review the accounts payable listing
for past due
2. Consider confirming accounts payable
as of the balance-sheet date.
a. Identify the major suppliers of
goods or services to which
confirmation requests should be
sent.
b. Maintain control of and mail the
confirmation requests.
c. When confirmation replies are
received, prepare a worksheet
summarizing the results. It should
show (1) vendors name, (2) balance
per books, (3) balance per

confirmation received, (4) difference,

and (5) explanation of difference.

DONE
BY

DATE

W/P REF.

17

d. Perform alternative procedures on

confirmation requests not returned
e. Perform a search for unrecorded
liabilities covering the period from
the balance-sheet date
Review the cash disbursements
journal for all payments.
Obtain from the client the files for
all unprocessed invoices and
determine whether the invoice
amount is properly included or
excluded from accounts payable
as of the balance sheet date.
Ask the clients accounting
personnel about their knowledge
of unrecorded liabilities.
Scan the trade accounts payable
listing as of the end of the current
period and compare it to the
listing of the prior period.
3. Compare the current years account
balances with the prior years account
balances for gross payables and
purchase discounts.
4. In case of risk of fraud:
a. Send confirmations to vendors
requesting them to furnish
information such as payment terms,
payment histories.
b. Match vendor names and addresses
per invoices with master vendor list.
c. Examine disbursements made for
items that do not require delivery of
goods.
d. Examine supporting documents for
payments
5. If disclosures about fair values are
required, perform the following:
a. Obtain information about the fair
value of accounts payable

18

b. Determine that the fair value

amounts are supported by the
underlying documentation
c. Determine that the method of
estimation and significant
assumptions used are properly
disclosed

Tick Mark Legend:

- Recalculated w/o/e
- Recalculated respective to FX amount
- Agreed to G/L w/o/e
- 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:

19

AUDIT PROGRAM FOR EQUITY

Company Name: AMNP Company
Balance Sheet date: December 31, 2015
AUDIT OBJECTIVES

A. All the equity accounts on the balance sheet are appropriately

authorized and issued
B. To ensure that all changes to equity accounts including transfer to
reserve and dividends have been accounted for in the books of the
company on a timely basis
C. To ensure that all equity accounts are stated on the balance sheet at
the appropriate amounts
D. To ensure that all equity accounts have been presented, classified and
disclosed in the financial statements
AUDIT PROCEDURES
DONE
DATE
W/P REF.
BY
1. Test equity balances
a. Obtain a schedule of all equity
accounts showing number of shares
authorized, issued, and outstanding
at the beginning and end of the year
and all transactions affecting equity.
Test the summarization of the
schedule
Trace totals to the general
ledger
Check the number of shares
and amount of issued,
subscribed and paid up capital
Agree changes in authorized
or issued shares to minutes
and documents filed
Examine all changes in capital
b. Test entries to paid-up capital other
than from the issuance of securities

20

c. Test entries to retained earnings

other than from net income,
dividends, and treasury shares.
d. Examine documents supporting
treasury shares transactions during
the period.
e. Examine schedule of shares owned
off record and beneficially by major
officers
f. Evaluate results of the tests.
2. Test dividends and retained earnings
a. Determine that dividend payment
and liability have been correctly
recorded.
Review extracts of board
minutes for dividends
proposed and paid
Re-compute calculation of
dividends and trace total
dividends to earnings
statement
Re-compute the liability for
dividends
b. Agree changes in retained earnings
to supporting documentation and
trace ending balance to general
ledger and equity accounts.
c. Evaluate results of the tests
3. Test presentation of equity
a. Determine that for each class of
authorized shares, the title of issue,
par or stated value per share, and
the number of shares authorized,
issued, and outstanding are properly
recorded and disclosed.
b. Determine that authorized shares,
paid-in capital, reserves, and
retained earnings are properly
recorded, classified and disclosed

21

c. Determine that any shares options,

warrants, rights, or conversion
privileges existing at the balancesheet date are disclosed properly.
d. Determine that all transactions
affecting shareholders' equity are
properly recorded in conformity with
applicable state laws
4. Test shares option
a. Obtain a schedule of options
granted, cancelled, and exercised
during the audit period, and options
outstanding, exercisable and
available for future grant at the
balance-sheet date.
Test the summarization of the
schedule
Review descriptions of the
shares option plans and
determine that all activity
during the year is in
compliance.
Agree options granted to
board minutes and to schedule
of changes in outstanding
shares.
Determine that outstanding
options are valid
Agree option price of qualified
shares options granted to
market source.
Agree options cancelled or
expired to supporting
documentation
Evaluate results of the tests
5. Test unusual entries recorded to
general ledger
a. Investigate journal entries from
sources that are typically not

22

associated with this account.

b. Examine related accounting records
and determine whether the selected
debit/credit is valid, appropriate, and
authorized
c. Determine whether the entries
exhibit characteristics of
inappropriate or unauthorized
journal
d. Evaluate the reasonableness of
other adjustments made in the
preparation of the financial
statement
6. Evaluate business rationale for
significant unusual transactions

a. Gain an understanding of the

business rationale for such
significant unusual transaction.
b. Consider whether the
transactions involve previously
unidentified related parties or
parties that do not have the
substance or the financial
strength to support the
transaction without assistance
from the entity
c. Determine whether that rationale
suggests that the transactions
may have been entered into to
engage in fraudulent financial
reporting.

23

Tick Mark Legend:

- Recalculated w/o/e
- Recalculated respective to FX amount
- Agreed to G/L w/o/e
- 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: