REPUBLIC OF THE PHILIPPINES

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

Audit Program

Accounts: Due from Regional Office, Due to Central Office (Reciprocal Accounts)

Audit Objectives and Audit Procedures W.P. Ref. Man- Remarks

Assertions
1. To ascertain the 1.
completeness and
correctness of
account balance as
recorded in the
books. (Accuracy
and Completeness) 2.
Risks and Possible
Risks Identified:
a) Receivable
transactions are not
recorded accurately. 3. Foot the debit and credit entries
b) Not all receivable
transactions made
during the year is
recorded. 4. Secure copy of the following:
days
Trace beginning balance to ATM/
prior year’s audit working ATL
papers/ending balance prior
years Financial Statements
(F/S).
Trace debit posting in the GL
to the General Journal and
credit posting to the Cash
Receipt Journal (for RA Books)
and Cash Journal (for NG
books).
in the GL and establish the
balance.
a. latest Trial Balance
(T/B)
b. Schedule of receivables
c. The Schedule of
receivables should contain
the following information:
o Name and address of
debtors
o Nature of Receivables
o Balance of accounts
o Age of accounts

5. Compare the GL balance with

the balance in the T/B or
Balance Sheet and the
Subsidiary Ledger.

6. Prepare proof of balance

1
 Audit Objectives and Audit Procedures W.P. Ref. Man- Remarks
Assertions days
working paper/Top Schedule.

7. Investigate deficiencies, if any.

8. Prepare and issue AOM, if

necessary.
2. To determine 1. Based on Schedule of ATM/
whether all Receivable obtain in 1.4b select ATL
receivable samples to be verified
transactions are considering materiality of
valid and in amounts.
accordance with
applicable laws, 2. For samples selected, examine
rules and billings/assessments and
regulations. supporting documents for:
(Regularity and o authorization and approval
Validity) o accuracy
o account classification
Risks and Possible o numerical sequence of bills
Risks Identified: and invoices.

3. For credits to the accounts,

a) Receivable determine if there are
transactions corresponding debits to the
recorded are not account. In case of credit
valid. balance, investigate/analyze.
b) Receivable
transactions are not 4. Ascertain whether write-offs, if
made in accordance any, are in accordance with
with applicable laws and regulations.
laws, rules and
regulations 5. Prepare analysis working
paper.

6. Prepare and issue AOM, if

necessary
3. To determine the 1. Confirm all accounts ATM/
existence of and if not possible, limit to ATL
Accounts samples selected in 2.1.
Receivable.
(Existence) 2. Evaluate results of
confirmation in 3.1.
Risks and Possible
Risks Identified: 3. Investigate
unconfirmed amounts and those
Receivable recorded in disputed by debtors.
the books does not exist.

2
 Audit Objectives and Audit Procedures W.P. Ref. Man- Remarks
Assertions days
4. Prepare and issue
AOM, if necessary.
4. To ascertain the 1. Recalculate allowance for ATM/
adequacy of bad debts and compare with ATL
allowance for recorded charges in the
doubtful allowance for bad debts.
receivables, where
applicable. 2. Investigate significant or
(Valuation) unusual differences.

Risks and Possible 3. Prepare and issue AOM, if

Risks Identified: necessary.

Receivables recorded
are not properly valued
as of balance sheet date.

5. To determine 1. Compare statement ATM/

whether the account presentation with NGAS. ATL
is properly and
consistently 2. Determine that the account
classified and is properly identified and
presented in the F/S classified in the FS.
and that disclosure
are appropriate. 3. Determine the
(Presentation and appropriateness/ completeness
Disclosure) of disclosures made in the
Notes to FS
Risks and Possible
Risks Identified: 4. Prepare and issue AOM, if
necessary.
Receivables presented
in the financial
statements are not fairly
presented.

Prepared By: Reviewed By:

MARYJANE H. SADANG ELEANOR G. JOVES

Audit Team Leader Supervising Auditor
Date: _________________ Date: _____________