ASSURANCE IN FINANCIAL AUDITING_part10 potx

A Handbook 235 INTOS AI Ref. ISA Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref.  Where the stock take in taken at a date other than the balance sheet date was adequate considerati on given to stock transaction s between the stock take date and the balance sheet date  If perpetual stock records are maintained are differences disclosed by the client’s physical stock properly reflected in the account 3 . Were cut off tests performed and appropriately documented? Par. 3.5 ISA 500 par 15 This is trial version www.adultpdf.com A Handbook 236 INTOS AI Ref. ISA Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. e. Debtors / Accounts Receivable 1 . Were tests performed to confirm the existence of debtors Par. 3.5 ISA 500 par 15 2 . Were cut off tests performed and appropriately documented as to credit notes, cash receipts and returns? Par. 3.5 ISA 500 par 15 3 . Was the reasonableness of the provision for doubtful accounts and write-offs adequately and appropriately covered in the working papers? Par. 3.5 ISA 500 par 15 4 . Are other accounts receivable adequately verified? Par. 3.5 ISA 500 par 15 f. Bank and Cash This is trial version www.adultpdf.com A Handbook 237 INTOS AI Ref. ISA Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. 1 . Were bank request confirmations obtained in respect of all banking accounts? Par. 3.5 ISA 500 par 15 2 . Were the bank certificates agreed to the bank reconciliation statements/ Par. 3.5 ISA 500 par 15 g . Creditors / Accounts Payable 1 . Do the audit working papers indicate that source documents were examined? Par. 3.5 ISA 500 par 15 This is trial version www.adultpdf.com A Handbook 238 INTOS AI Ref. ISA Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. 3 . Do the audit working papers indicate that adequate confirmation coverage was made and documented, or examination of suppliers’ statements when considered appropriate, including zero balances and/ or unreasonable or unexpectedly low balances? Par. 3.5 ISA 500 par 15 4 . Were cut off tests performed and appropriately documented as to purchases and disbursements, including a search for unrecorded liabilities? Par. 3.5 ISA 500 par 15 5 . Were the tests of balances of the accrued liabilities adequate? Par. 3.5 ISA 500 par 15 This is trial version www.adultpdf.com A Handbook 239 INTOS AI Ref. ISA Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. 6 . Are other current liabilities adequately verified? Par. 3.5 ISA 500 par 15 h . VAT / PAYE E 1 . Was VAT adequately audited? Par. 3.5 ISA 500 par 15 2 . Was PAYE adequately audited? Par. 3.5 ISA 500 par 15 i. Cash flow inform ation 1 . Have the appropriate cash inflows and cash outflows been properly recorded in the cash flow Statements? Par. 3.5 2 . Is there evidence on the file that the cash flow statement was audited? Par. 3.5 ISA 500 par 15 This is trial version www.adultpdf.com A Handbook 240 INTOS AI Ref. ISA Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. 3 . Was other inform ation, include d in the financi al statem ents, verifie d to determ ine if any inconsi stencie s exist? Par. 3.5 This is trial version www.adultpdf.com A Handbook 241 Appendix 5D INDIVIDUAL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL Name of Reviewer Signature Date Financial year QAQ reference Reviewing object name Name of audit manager/ Director Signature Date Conducting Financial audit phase (circle please) Planning/ Conducting/ Reporting WP No WP ref No Observation: Insert the observation here Cause Effects: Write down impact of observation Feedback from the Audit manager/ Audit director Insert the feedback here Recommendation Insert recommendation INDIVIDUAL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL Write the reason of observation including the sub element reference This is trial version www.adultpdf.com A Handbook 242 FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL Name of Reviewer Himanshu Signature Date 31.10.2008 Financial year 2007 QAQ reference C1 Reviewing object name Agency of secondary education Name of audit manager/ Director Gautam Signature Date 01.11.2008 Conducting Financial audit phase (circle please) Planning/ Conducting/ Reporting WP No RW08-1 WP ref No R – 3 Observation: INTOSAI Standards paragraph 3.1.3 (k), International Auditing standards 300 paragraph 2, 8 & 9 and International Standards of Supreme Audit Institution 1300 require working papers to include a planning memorandum. Although the SAI methodology requires the preparation of planning memorandum, there was no planning memorandum on file. There was no indication that a plan was prepared before the execution of the audit. Cause Effects: Objectives of the audits may not be achieved due to lack of planning and this may result in wastage of resources. Feedback from the Audit manager/ Audit director The observation is noted and we make all the necessary effort to prepare audit plans and place them on file. Recommendation The SAI should develop an operational plan that considers all resource requirements and allocates sufficient resources to enable audit teams to conduct their audits efficiently and effectively. Adherence to the operational needs should be monitored by the supervisors. During the period under review the SAI was under pressure to meet the statutory deadline and teams were going out for audits without preparing audit plans and there was no proper supervision. Last year the report was produced six weeks after the deadline. This is trial version www.adultpdf.com A Handbook 243 Appendix 5E QUALITY ASSURANCE REVIEW RECORDING FORM (QARRF) 1. TERMS OF REFERENCE A. Positive observation Summary of the Key Positive Aspects from the Review B. Areas for improvement QAQ reference Observation Causal Factors Sub- element Effects Recommendations Audit manager/ Audit director Comments 2. PLANNING A. Positive observation Summary of the Key Positive Aspects from the Review B. Areas for improvement QAQ reference Observation Causal Factors Sub- element Effects Recommendations Audit manager/ Audit director Comments This is trial version www.adultpdf.com A Handbook 244 3. EXECUTION PHASE A. Positive observation Summary of the Key Positive Aspects from the Review B. Areas for improvement QAQ reference Observation Causal Factors Sub- element Effects Recommendations Audit manager/ Audit director Comments 4. REPORTING PHASE A. Positive observation Summary of the Key Positive Aspects from the Review B. Areas for improvement QAQ reference Observation Causal Factors Sub- element Effects Recommendations Audit manager/ Audit director Comments Signed by …………………… Date ……………. This is trial version www.adultpdf.com [...]... respond to the risks identified Audit procedures in audit program appear to be inadequate to attain the audit During the period under review the SAI was under pressure to meet the statutory deadline and teams were going out for audits without preparing audit plans and there was no proper supervision Last year the report was produced six weeks after the deadline Internal governance There is no manual or technical... Due to resources constraint SAI has yet to develop such document 246 objective were undertaken during and upon completion of the audit in the future Audit Methodology (Tools) Human Resource (Training) Signed by …………………… Date …………… This is trial version www.adultpdf.com A Handbook 247 Appendix 5G Sample Template of draft report FINANCIAL AUDIT REVIEW REPORT TABLE OF CONTENTS INTRODUCTION ……………………………………………………………………………... 1 1 Terms of reference ………………………………………………………………… 1 2 Planning ……………………………………………………………………………….1 3 Execution …………………………………………………………………………… 1 4 Reporting ……………………………………………………………………… 1 5 General Overall conclusion Management response INTRODUCTION Please insert the background information APPROACH AND METHODOLOGY Please insert the main data gathering techniques Limitations, if any, of the approach OBSERVATIONS... There was no planning memorandum on file There was no indication that a plan was prepared before the execution of the audit H.5 D-6 Causal Factors Effects Recommendations Audit manager/ Audit director Comments Objectives of the audits may not be achieved due to lack of planning and this may result in wastage of resources INTOSAI Standards paragraph 3.1.3 (k) and International Auditing standards 300...Appendix 5F SAMPLE: QUALITY ASSURANCE REVIEW RECORDING FORM Appendix 5F SAMPLE: QUALITY ASSURANCE REVIEW RECORDING FORM 1 TERMS OF REFERENCE A Positive observation Copy of audit engagement letter was attached in audit file and it confirmed the auditor’s acceptance of the appointment, the objective and scope of the audit, the extent of the auditor’s responsibilities... of its manpower considering the expertise based on each sector and nature of audit The assessment and monitoring policy needs to be formulated recognizing the requirement of the Code of Conduct This is trial version www.adultpdf.com A Handbook Audit manager/ Audit director Comments 245 2 PLANNING A Positive observation Materiality logically determined and well documented according to the IAS B Areas... planning and this may result in wastage of resources INTOSAI Standards paragraph 3.1.3 (k) and International Auditing standards 300 paragraph 2, 8 & 9 and International Standards of Supreme Audit Institution 1300 require working papers to include a planning memorandum It would be good for the SAI to come with a proper operational plan that will cater for all resource requirements and enable audit teams... programs might lead to ineffective audit execution Audit methodology and standard (Manual and Guidance) The audit programs were not updated in case additional or alternative audit procedures The audit procedures may not attain the audit objectives This is trial version www.adultpdf.com A Handbook SAI has felt the necessity of developing manual, format and toolkit for risk and internal control assessment... Observation A1 There are no documents demonstrating compliance with Code of Ethics and assessment of the audit team competency Causal Factors Effects Recommendations Sub-element Office does not have specific policy to assess the competency of staff before assigning the audit engagement and system of evaluating the compliance of Code of Ethics No any guidance was given in this regard The audit management did... for the implementation of the risk assessment concept of guideline Process, toolkit and checklist for risk assessment need to be defined in the manual; The observation is noted and we make all the necessary effort to prepare audit plans and place them on file As audit progresses, changes due to additional audit procedures should be reflected in the audit program The audit team leader will ensure that . 241 Appendix 5D INDIVIDUAL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL Name of Reviewer Signature Date Financial year QAQ. director Insert the feedback here Recommendation Insert recommendation INDIVIDUAL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL Write the reason of observation including the. Conducting Financial audit phase (circle please) Planning/ Conducting/ Reporting WP No RW08-1 WP ref No R – 3 Observation: INTOSAI Standards paragraph 3.1.3 (k), International Auditing standards