Professional Documents
Culture Documents
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Outline
WORKING PAPERS
ORDINARILY INCLUDE:
Information concerning the legal and
organizational structure of the entity.
Extracts or copies of important legal
documents, agreements and minutes.
Information concerning the industry,
economic environment and legislative
environment within which the entity
operates.
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Articles of Incorporation
By-Laws
Minutes or Resolution of
Continuing Interest
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V.
III.
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Substantive Tests
WORKING TRIAL BALANCES
AND ADJUSTMENTS
ST Substantive Test Program Summary
WBS Working Balance Sheet
WPL Working Profit and Loss
TB Trial Balance
AJE/RJE Summary of Adjusting/Reclassifying
Journal Entries
PJE Summary of Passed Journal Entries
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PSA 210
ON AUDIT DOCUMENTATION
Section 2.
The auditor should document matters which are
important in providing evidence to support the
audit opinion and evidence that the audit was
carried out in accordance with Philippine
Standards on Auditing.
Section 5.
The auditor should prepare working papers which
are sufficiently complete and detailed to provide
an overall understanding of the audit.
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PHYSICAL EXAMINATION
Description Of General Auditing Procedures
THIRD-PARTY STATEMENTS OR
CONFIRMATIONS
OBTAINING CONFIRMATION
DIRECTLY OR DETAILS OF
ACCOUNT BALANCES
-
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CLIENT STATEMENTS OR
REPRESENTATIONS
OBTAINING CLIENTS
REPRESENTATION LETTER,
EXPLANATIONS TO MANY DIVERSE
QUESTIONS RAISED DURING THE
AUDIT
-
AUTHORITATIVE
DOCUMENTATION
EXAMINING (OR VOUCHING) PAID CHECKS,
VENDORS PRUCHASE ORDERS,
RECEIVING REPORTS, TITLES,
CONTRACTS AND OTHER
DOCUMENTARY MATERIALS.
OBSERVATION
OBSERVING THE TAKING OF
PHYSICAL INVENTORIES BY CLIENT
PERSONNEL OR THE ACTUAL
OPERATION OF INTERNAL
CONTROL
- To determine compliance with prescribed
procedures.
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CLERICAL ACCURACY
RECHECKING CLERICAL
DETERMINATION BY CLIENT
- To verify the accuracy of computations and
transfers of information made by client.
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Working Paper
Organization Chart
Continuing
Audit
File
Current
Working
Paper File
Evidential Matter
(Test of Controls)
Risk
Assessment
& Planning
Job
Administration
Work
Of
Others
Lead
Schedules
&
Substantive
Work
Financial
Reporting
Transaction
Processing
Cycles
Transaction
Processing
Cycles
Financial
Reporting
Account Level
Evidential Matter
(Substantive Testing)
Working
Trial
Balances
Lead
Schedules
and
Lead
Substantive
Work Schedules
Detail
Schedules
and
Memoranda
Assets
Liabilities
&
Equity
Profit
& Loss
Indexing
Examples
ANAK NG JUETENG, INC.
Analysis of Reserved for Doubtful Accounts
Audit: 12-31-04
Balance Beginning of Year
Write-offs
Provision
Balance End of Year
2003
P130,089
( 71,087)
92,689
2004 _
1 P151,691
( 2 62,439)
B-9
PBC
83,994_
1 P151,691
=========
B
P173,246
=========
B
Examples
ANAK NG JUETENG, INC.
List of Outstanding Checks
Audit: 12-31-04
Amount _
P
991.90
15,000.00
2,001.03
12,576.13
2,790.29
1,745.75
8,941.86
49,810.73
15,439.75
4,989.51
5,533.64
P122,410.43
==========
A-4
PBC
NOTE 1> Reviewed the list of outstanding checks noting no unusual or
significant items except for
B
P25,962.90
=========
Per review of the vendor invoices and receiving reports, this check is
for lumber and supplies purchased for the additions to the building
site. See extracts from the board of directors meeting minutes at XX
for further discussion.
PAJE <1>
Cash
P25,962.90
Accounts Payable
P25,962.90