AUDIT PROGRAM

CLIENT: __________________________________________________________ J/AP/2

PERIOD: __________________________________________________________

SUBJECT: LONG-TERM DEPOSITS AND PREPAYMENTS

Est. Phase/ W/P

Procedures By Comments/Explanations
Hrs. Level Ref.
AUDIT OBJECTIVES

To determine whether:

A. The balances represent all amounts owed to the entity

at the balance sheet date and have been properly
recorded.
B. The allowances for doubtful accounts are adequate but
not excessive.
C. Prepayments represent all proper charges or amounts
that can reasonably be expected to be realized through
future operations or otherwise and are properly
recorded.
D. The balances are properly described and classified and
adequate disclosures with respect to these amounts
(including disclosures of amounts that have been
pledged, discounted or sold with recourse or are with
related parties) have been made.

SUBSTANTIVE PROCEDURES

1. Overall Analytical Review

1.1 Obtain a listing of long-term deposits and

prepayments. Compare balances with previous year
and investigate significant differences.
1.2 Test the clerical accuracy of the footings
of the listing and trace the totals to the general ledger
control accounts.
1.3 Perform analytical review of the balances on the lead
schedule.
1.4 Determine whether the amounts are of a long-term
nature and are properly classified in the financial
statements.

2. Circularization for Deposits

2.1 Select a sample of balances to circularize

confirmations (Scope / Sample Rs._______).
Particularly include all related parties without
exemption. Prepare confirmation control sheet.
Update when necessary and have the client reconcile
any differences identified in the confirmations
received.
2.2 Follow-up confirmation requests and send reminders,
if necessary.
2.3 Consider inclusion in covering letter as a condition, if
material balances are not confirmed.
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 AUDIT PROGRAM
CLIENT: __________________________________________________________ J/AP/2

PERIOD: __________________________________________________________

SUBJECT: LONG-TERM DEPOSITS AND PREPAYMENTS

Est. Phase/ W/P

Procedures By Comments/Explanations
Hrs. Level Ref.
3. Alternate Procedures

3.1 For non-replies, examine supporting documentation.

3.2 Verify subsequent receipts based on the details
provided with client. Ensure that the subsequent
receipts are against the balances as at the balance
sheet date.
3.3 Obtain details for significant account balances. Foot
schedule and review for reasonableness.
3.4 Obtain and review aging analysis and consider
realisability of old outstanding deposits and any need
for provisioning.
3.5 Ensure that all deposits in foreign currencies are
adequately re-translated.

4. Long-term Prepayments

4.1 Obtain workings for all significant long-term

prepayments.
4.2 As a test of prepayments, trace to invoices noting
payment is for a period more than 12 months from the
balance sheet date and vouch the supporting
documents.
4.3 Obtain a detailed description of insurance coverage in
force. Review for deficiencies in the coverage. Cross-
refer with Standard Insurance Schedule.
4.4 Review profit and loss captions to ensure that no
prepayments have been omitted.
4.5 Consider whether the prepayments are appropriately
classified.

Other tests as deemed necessary

Management Letter

Prepare management letter points including:

 Internal control weaknesses;

 Business improvement opportunities;
 Legal non-compliance;
 Accounting system deficiencies; and
 Errors and irregularities not material at the
financial statements level.

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 AUDIT PROGRAM
CLIENT: __________________________________________________________ J/AP/2

PERIOD: __________________________________________________________

SUBJECT: LONG-TERM DEPOSITS AND PREPAYMENTS

Est. Phase/ W/P

Procedures By Comments/Explanations
Hrs. Level Ref.
Disclosure

Ensure appropriate disclosure have been made in

accordance with the reporting framework and fill
relevant portion of Financial Statement Disclosure
Checklist (FSDCL).

Supervision, review and conclusion

1. Perform Senior review and supervision.

2. Resolve Senior review points.
3. Resolve Partner and Manager review points.
4. Conclude response to the audit objectives.

Audit conclusion

Based on the substantive test procedures, I/we performed as outlined above, it is my/our opinion that the audit objectives set forth at
the beginning of this audit program have been achieved, except as follows:

___________________________________________________________________________________________________________

___________________________________________________________________________________________________________

___________________________________________________________________________________________________________

__________ _____________ _________ ________

Date:____________ Signature Job Incharge Manager Partner

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