Fort Bend Independent School District

Internal Audit Work Program

AUDIT NAME: Fixed Asset Audit
AUDIT NUMBER: 300-04
AUDIT DATE: February 2004 Apri 2004
!r"#ra$ Based "% !resu$ed "r A%ti&ipated '"%diti"%s
(! Re) Date
GENERAL:
Fixed assets are de)i%ed by t*e Texas Edu&ati"% A#e%&y +TEA, as
pur&*ased "r d"%ated ite$s ta%#ibe i% %ature t*at *a-e a use)u i)e
"%#er t*a% "%e year a%d a u%it -aue ") ./0000 "r #reater1 F"r &"%tr"
a%d a&&"u%tabiity purp"ses0 t*e TEA2s #uidei%es re3uire t*at assets
&"sti%# ./0000 "r $"re $ust be re&"rded i% t*e Fixed-Asset 4r"up ")
A&&"u%ts1
T*is audit 5i &"%&e%trate "% e%suri%# i%ter%a &"%tr"s are i% pa&e t"
$ai%tai% t*e "b6e&ti-es stated ab"-e1
T*is audit 5i $ai%y address t*e peri"d )r"$ 7epte$ber 80 2003 t*r"u#*
February 290 20041

AUDIT OBJECTIE!:
81 '"$pre*e%si-e p"i&ies a%d pr"&edures addressi%# )ixed assets a&ti-ities
*a-e bee% de-e"ped a%d d"&u$e%ted:
21 T*e Distri&t is i% &"$pia%&e 5it* t*e estabis*ed p"i&ies a%d re#uat"ry
re3uire$e%ts:
31 ;aidate t*at t*ere is pr"per se#re#ati"% ") duties 5it*i% t*e )ixed assets
depart$e%t:
41 E%sure t*at ade3uate i%ter%a &"%tr"s *a-e bee% i$pe$e%ted t" i$it
exp"sure t" u%aut*"ri<ed "r i%appr"priate tra%sa&ti"%s:
/1 ;eri)y t*at tra%sa&ti"%s are pr"&essed i% a&&"rda%&e 5it* )ixed assets
#uidei%es a%d Distri&t p"i&ies a%d pr"&edures1
!a#e 8 ") 4
Fort Bend Independent School District
Internal Audit Work Program
AUDIT NAME: Fixed Asset Audit
AUDIT NUMBER: 300-04
AUDIT DATE: February 2004 Apri 2004
!r"#ra$ Based "% !resu$ed "r A%ti&ipated '"%diti"%s
(! Re) Date
PRELI"INAR# WOR$:
81 !repare a% e%#a#e$e%t $e$" t" a%%"u%&e t*e audit1
21 !repare Audit"r2s I%depe%de%&e 7tate$e%t1
31 =btai% a% u%dersta%di%# ") t*e auditee2s "perati"%s t*r"u#* resear&* a%d
i%ter-ie5s1
41 !er)"r$ a #e%era "-er-ie5 ") t*e i%ter%a &"%tr" e%-ir"%$e%t a%d
estabis* t*e s&"pe ") t*e audit1
/1 E%sure t*at p"te%tia )raudue%t a&ti-ities *a-e bee% &"%sidered by
$a%a#e$e%t by i%3uiri%# 5it* $a%a#e$e%t ab"ut t*eir >%"5ed#e ")
)raud "pp"rtu%ities 5it*i% t*e )ixed asset depart$e%t a%d t*e steps t*ey
*a-e ta>e% t" $i%i$i<e t*ese "pp"rtu%ities1
?1 De-e"p appr"priate audit tests t" pr"-ide assura%&e t*at $a%a#e$e%t2s
"b6e&ti-es are bei%# $et0 a%d t*at $isappr"priati"% ") assets *as %"t
"&&urred1 D"&u$e%t i% audit 5"r> pr"#ra$1
AUDIT PROCEDURE! % TE!TING:
81 4e%era
a1 =btai% t*e )""5i%#0 5*ere appi&abe:
i, !"i&ies a%d !r"&edures
ii, =r#a%i<ati"%a '*arts
iii, !ri"r Audit Rep"rts
i-, Exter%a Audit"r Ma%a#e$e%t Rep"rts
-, Re#uat"ry Exa$i%ati"% Rep"rts
-i, Reated I%)"r$ati"% Re#ardi%# @a5s a%d Re#uati"%s
b1 Re-ie5 p"i&ies a%d pr"&edures t" deter$i%e ade3ua&y1 E%sure t*e
p"i&ies a%d pr"&edures *a-e bee% &"$$u%i&ated t" appr"priate
pers"%%e1
&1 Re-ie5 a%y pri"r exa$i%ati"% rep"rts t" deter$i%e 5*et*er
&"rre&ti-e a&ti"% *as bee% i$pe$e%ted )"r %"ted de)i&ie%&ies1
!a#e 2 ") 4
Fort Bend Independent School District
Internal Audit Work Program
AUDIT NAME: Fixed Asset Audit
AUDIT NUMBER: 300-04
AUDIT DATE: February 2004 Apri 2004
!r"#ra$ Based "% !resu$ed "r A%ti&ipated '"%diti"%s
(! Re) Date
21 Fr"$ t*e asset isti%# by "&ati"%0 see&t 82 "&ati"% a%d test ite$s
#reater t*a% ./0000 )"r t*e )""5i%#:
a1 !*ysi&ay i%spe&t a%d e%sure assets are i% usabe &"%diti"% a%d
"&ated at t*e stated pre$ises1
b1 E%sure assets are pr"pery ta##ed0 i) appi&abe1
31 Re-ie5 "b6e&t &"des 5it* i% t*e #e%era ed#er %"t ass"&iated 5it* )ixed
assets0 t" e%sure t*at a assets *a-e bee% ide%ti)ied a%d pr"pery
re&"rded as )ixed assets1
41 7ee&t a sa$pe ") additi"%s $ade duri%# t*e audit peri"d a%d test t*e
)""5i%#:
a1 Exa$i%e t*e supp"rti%# d"&u$e%tati"% a%d a#ree t*e des&ripti"%0
pri&e0 a&3uisiti"% date t" 5*at is re&"rded i% 'IM71
b1 ;"u&* "5%ers*ip +titeAdeed0 et&,1
&1 I) *ist"ri&a &"st is %"t a-aiabe0 re-ie5 reas"%abe%ess ") t*e
esti$ated &"st assi#%ed t" t*e asset1
d1 Re-ie5 t*e reas"%abe%ess ") re&"rded )air $ar>et -aue ") assets
a&3uired by #i)t1
e1 Re-ie5 t*e B"ard ") Trustee Mi%utes a%d -eri)y t*at #i)ts 5ere
a&&eptedAappr"-ed by t*e B"ard1
/1 7ee&t a sa$pe ") ite$s disp"sed )r"$ 9A8A03 3A82A04 a%d test t*e
)""5i%#:
a1 E%sure t*e pr"per pr"&edures 5ere &"$peted1
b1 !r"per aut*"ri<ati"% 5as "btai%ed1
?1 7ee&t a sa$pe ") ite$s tra%s)erred duri%# t*e audit peri"d1
a1 E%sure t*e pr"per pr"&edures 5ere &"$peted1
WOR$ PAPER!:
81 =r#a%i<e a ree-a%t 5"r>papers i% a &ear a%d "#i&a a%d $a%%er a%d
&r"ss re)ere%&e audit steps t" t*eir &"rresp"%di%# 5"r>papers1
21 'reate a )i%a i%dex )"r t*e 5"r>paper bu%de1
31 '"$pie a%d se&urey st"re audit 'BA )ies )"r re)ere%&e i) %eeded1
!a#e 3 ") 4
Fort Bend Independent School District
Internal Audit Work Program
AUDIT &INDING! % REPORTING:
81 D"&u$e%t su$$aries ") a audit )i%di%#s as s""% as ex&epti"%s are
%"ted1
21 Re&"$$e%d t" auditee a%y appr"priate ad6ust$e%ts0 i%ter%a &"%tr" "r
"perati"%a re&"$$e%dati"%s as a resut ") t*e re-ie51
31 Deter$i%e 5*et*er t" i%&ude ea&* audit )i%di%# i% )i%a audit rep"rt
based "% t*e audit disp"siti"%0 t*e "-era $ateriaity t" t*e audit a%d t*e
reati-e ris> exp"sure1
41 !repare t*e dra)t audit rep"rt )"r re-ie5 by auditee1
/1 Distribute te%tati-e a%d prei$i%ary audit rep"rt t" auditee a%d re3uest
resp"%ses 5it*i% t5" 5ee>s1
?1 '"$pie )i%a audit rep"rt 5it* auditee2s resp"%ses0 re-ie5 )"r err"rs0 a%d
distribute t" appr"priate Distri&t $a%a#e$e%t1
Audit"r 7i#%ature:
Date:
!a#e 4 ") 4