REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Department of Social Welfare and Development
National Capital Region
City of Manila

Audit Program

Account: Property, Plant and Equipment

Audit Objectives, WP
Man-
Assertions and Risk Audit Procedures Ref. Remarks
days
Statements
A. To determine whether 1. Obtain or prepare a summary of ATM/
property and equipment property and equipment ATL
included in the balance transactions and analysis of the
sheet physically exist. accumulated depreciation during
Additions included only the year and reconcile to ledger.
the capitalizable cost of
assets purchased, 2. Conduct physical inspection of
constructed, or leased major acquisition of plant and
and retirements are equipment.
removed.
3. Vouch additions to property and
Risks and Possible Risks equipment during the year.
Identified:
4. Investigate disposals and
•Possible shortages retirements of property and
between the quantity equipment during the year.
balance per property
card and per physical 5. Examine evidence of legal
count; ownership of property and
equipment.
•Possible risk that the
unserviceable properties 6. Examine lease agreement on
due for disposal were property and equipment leased to
still included in the and from others.
RPCPPE.

•Possible risk of
numerous defective
properties subject for
repair that could still be
 Audit Objectives, WP
Man-
Assertions and Risk Audit Procedures Ref. Remarks
days
Statements
useable were not
immediately fixed;

B. To determine that 7. Analyze repair and maintenance ATM/

property and equipment expense accounts. ATL
include all capitalizable
costs are not expensed.

Risks and Possible Risks

Identified:

 Possible risk of
unrecorded
Donations/Purchases
of Property, Plant
and Equipment

C. To determine that the 8. Investigate status of property and ATM/

district has legal title or equipment not in current use. ATL
ownership rights to
property and equipment
included in the balance
sheet and the related
lease obligation of
capitalized leased assets
is recognized.

Risks and Possible Risks

Identified:

 Possible risk on
custody and
accountability of
Property, Plant and
Equipment.

D. To determine that 9. Test client computation of ATM/

property and equipment depreciation. ATL
is stated at cost and
allowances or depletion 10. Perform analytical procedures
are computed on the for property and equipment.
basis of acceptable and
consistent methods.
 Audit Objectives, WP
Man-
Assertions and Risk Audit Procedures Ref. Remarks
days
Statements

Risks and Possible Risks

Identified:

 Possible risk of non-

provision of
Depreciation/Accum
ulated
Depreciation/Amorti
zation

E. To determine that 11. Review financial statement ATM/

property and equipment presentation and disclosure for ATL
are properly described property and equipment and for
and classified in the related revenues expenses.
balance sheet and
related disclosures are
adequate.

Risks and Possible Risks

Identified:

 Possible risk that

there were
misclassifications
among categories

Prepared By: Reviewed By:

MARYJANE H. SADANG ELEANOR G. JOVES

Audit Team Leader Supervising Auditor
Date: _________________ Date: _____________