Professional Documents
Culture Documents
Completing An Audit - Step by Step
Completing An Audit - Step by Step
1. Determine Deadline
2. Read LY’s CAF + PAF
3. Obtain F.S( TB, BS, IS & Supporting schedule)
• Let client know early as they may need time to prepare
• Initial analytical review & completing WBS, WIS & lead schedules
* Identify of problems
• Ask client if there are any unusual items item which the a/c entries they are
uncertain
* Client identify for us
• Check wf Khoo on solutions to problems identified (ie. solve the problem upfront)
• Obtain clarification on problems identified by faxing “ Audit Enquiries” to client
• Selection of samples for REC, PAY and other vouching works
• Understanding the clients accounting and filing systems
• Performance of REC, PAY and other vouching works
• Documentation of audit findings, problems and memo writing
• Final analytical review and Memo
• Finalisation of audit ( By way of “self-review” of the audit file)
• Clear Khoo review point
Note: For audit client which we are also the tax agent to obtain
detailed anlaysis:
Gain/loss on sale of PPE
Provision for doubtful debts
Bad debts written off
Misc/ Sundry expenses
Legal & Consultancy fee
Insurance premium
Donation/Gift/Entertainment
Additions/ Disposal from PPE
Tips: To identify problems early, so that client will have sufficient time to solve them.
Problem solving:
Identify problem
. Weigh the solution (reduce everything into double entries)
I. Select the easy solution
Obtain information via the entries into the GL (ie.GL a/c- Journal/PV-Supporting Doc)