REPUBLIC OF THE PHILIPPINES

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

Audit Program

Account: Semi-expendable Equipment accounts

Audit Objectives and Audit Procedures WP Man- Remarks

Assertions Ref. days

1. To ascertain the 1. Trace beginning balance to prior ATM/

completeness and year’s (PY’s) audit working ATL
correctness of account paper/ending balance of PY’s FS
balance as recorded in the and General ledger (GL).
books.
(Completeness, 2. Compare the GL balance with the
Ownership) balance in the TB, the SL/lapsing
schedule.
Risks and Possible Risks
Identified: 3. Scan the entries, note
unnecessary large entries and
a) All Semi-expendables are select the transactions to be
not recorded. examined.

. 4. Secure the documents covering

the selected samples.

5. Review the selected sample to

ascertain that:

a. the transaction is duly

supported by appropriate
documents;
b. the amount reported and
recorded is accurate;
c. the account classification is
appropriate;
d. the transaction is properly
approved;
e. the transaction is accurately
posted to the appropriate
property ledger card.
 Audit Objectives and Audit Procedures WP Man- Remarks
Assertions Ref. days

6. Obtain schedule of all Semi-

expendable accounts and analyze
all entries:

a. Description of accounts by
classification
b. Balances at the beginning
and at the end of period
c. Additions, disposals and
depreciation during the
period

7. Check whether Semi-expendable

properties are properly
reclassified/recorded to its proper
account.

8. Prepare working papers,

investigate and take note of any
deficiencies.

9. Prepare and issue AOM, if

necessary.

2. To determine the 1. Check whether the recorded ATM/

existence of the Semi- equipment are included in the ATL
Expendable Equipment latest Report on the Physical
accounts. (Existence) Count of Inventory (RPCI), if
available.
Risks and Possible Risks
Identified: 2. Physically verify, on a sampling
basis, the existence of all semi-
a) Recording of values expendables is included in the
are not in accordance RPCI.
with GAM.
3. If RPCI is not available,
b) Possible risk that physically verify, on a sampling
recorded Inventory basis, the existence of all
cannot be traced recorded acquired Inventory.
physically;
4. Check transfers of supplies from
c) Possible risk that one agency to another.
Physical Inventories
are not recorded 5. Prepare working papers,
investigate and take note of any
 Audit Objectives and Audit Procedures WP Man- Remarks
Assertions Ref. days
deficiencies.

6. Prepare and issue AOM, if

necessary.

b) To determine the 1. Review the basis of valuation ATM/

proper valuation of with reference to recorded ATL
the Semi-Expendable amounts, whether cost or fair
accounts. (Valuation) market value if through exchange
or non-exchange transactions
Risks and Possible Risks (purchase or donation) were
Identified: capitalized, in accordance with
the GAM.
a) Risk of
misclassification of
account; 2. Prepare working papers,
investigate and take note of any
b) Possible deficiencies.
overstatement of
account due to the 3. Prepare and issue AOM, if
non derecognition of necessary.
the inventory when
already issued to the
end-users;

c) Possible
understatement of the
account if the process
of recording is
outright expensed;

3. To determine whether the 1. Compare statement presentation ATM/

recorded accounts are with the GAM. ATL
properly and consistently
classified and presented 2. Determine that the account is
and that disclosures are properly identified and classified
appropriate. in the FS.
(Presentation and
Disclosures) 3. Determine the appropriateness/
completeness of disclosures made
Risks and Possible Risks in the Notes to FS.
Identified:
Prepare and issue AOM, if
a) The amount recorded necessary.
may not be properly
 Audit Objectives and Audit Procedures WP Man- Remarks
Assertions Ref. days
classified.

b) Any deviations or
abnormal conditions may
not be properly disclosed.

Prepared By: Reviewed By:

MARYJANE H. SADANG ELEANOR G. JOVES

Audit Team Leader Supervising
Auditor
Date: ______________ Date: _____________