Clients Name:

Client

Prepared by: Reviewed by:

Year/Period End: YPEDate

AUDIT PROGRAMME SALES OBJECTIVES:

To ensure that sales transactions are properly classified, completely and accurately recorded and valid. 1. Completeness (C) All valid transactions are recorded completely. 2. Accuracy (A) Transactions included are accurate as to the amount and other data, and recorded in the proper accounts. 3. Validity (V) Transactions recorded have occurred and pertain to the entity. 4. Existence (E) Verify that the transactions had occurred.

AUDIT PROCEDURES:
No. 1 1.1 Audit Procedures Analytical Procedures Obtain the details of preliminary analytical review report: - Compare this years revenue with last years revenue for their reasonableness. - Compare the increase or decrease of gross profit to see whether its increment or decrement has reasonably affected the net profit margin between the changes of the same year and changes between the current and previous years. - Compare the revenue and cost of sales of the same year to check if the changes are unusual, material and related. - Compare the revenue and cost of sales between the current and previous years to check if the changes are relevant, related, unusual and material. - Compare the amount of expenses that affects the revenue of the same year and between the current and previous years. - Obtain explanation on the material and unusual variances which affect the revenue. Tracing Trace sales order to the sales order listing - Obtain a sales order listing and sales order and agree the amount of sales are fairly stated by ensure the amount in the sales order such -1Obj Initial Date w/p

2 2.1

Auditor

Clients Name:

Client

Prepared by: Reviewed by: Obj Initial Date w/p

Year/Period End: YPEDate No. Audit Procedures as the dates, amount purchased tallied with the sale sorder listing Recalculate the amount of the quantity purchased and the unit cost to ensure the amount is correct Evaluate the amount whether they are agreed and enquire the management for any discrepancies.

2.2

Trace the details of the sales invoice to the sales journal - Make sure the amount of the quantity purchased, amount recorded are all tallied - Ensure all the sales are recorded to the right period Trace the receivables aging report to account receivables ledger - Determine whether the aging results have been reviewed and approved by an independent officer. Look for the initial of the officer and the date the officer signed. - Obtain an explanation for each discrepancies between the account receivable records and account in the general ledgers - Verify whether the customer exist or not for the amounts owed. Trace remittance advice or the receipts such as deposit slips and bank statement to the account balances and receivables listing - Ensure that the amount remitted are same with the amounts in the receivables listing - Review the amount remitted, date of remittance and the customer account name whether they are agreed Trace from the delivery notes to the sales invoice - Trace the details of purchased, quantities and date in the delivery notes the information in the sales invoice. - Ensure there is a valid customer initial by reviewing the customer signature to the initial in approved customer listing to ensure all the sales are acknowledged by the customers so the risk and rewards are transferred - Ensure the sales are properly posted and -2-

A C

2.3

2.4

A C

2.5

Auditor

Clients Name:

Client

Prepared by: Reviewed by: Obj Initial Date w/p

Year/Period End: YPEDate No. Audit Procedures enquire the management for the reason it is not classified as sales. 3 3.1 Vouching Vouch from sales order listing to sales order: - Examine sales order for the responsible officers signature and stamp. - Vouch details to the sales order to ensure the details such as date, sales order number, customer name, amount and other relevant details are exist. - Compare sales order listing details and sales order details to check if the details are tally. Vouch from sales journal to sales invoice: - Examine sales invoice for the responsible officers signature and stamp. - Vouch details to sales invoice to ensure the amount and other details such as date, invoice number, customer name are accurate. - Compare the sales journal and sales invoice to ensure whether the details are tally. Vouch from sales order to customers purchase order: - Ensure whether the customers have place the order. - Examine purchase order for the customers signature and stamp. - Examine details of purchase order such as purchase order number, amount and date whether tally with the sales order.

V E

3.2

V A

3.3

E V A

Note: Disclosure requirements are included in FRS / MASB Disclosure Checklists.

FINDINGS:
No. Issues Impacts Recommendations

CONCLUSION:

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Auditor

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