Elsa Liwanag-Tinsay Accounting Office

Unit 10 CT Center Bldg., Mac Arthur Highway, San Pablo, Malolos City, Bulacan

EXTERNAL AUDIT PLAN

Overall Audit Objectives

 Identify and assess the risks of material misstatement of the financial statements;
 Design and perform audit procedures responsive to those risks;
 Obtain audit evidence that is sufficient and appropriate to provide a basis for an
opinion;
 Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Cooperative’s internal control;
 Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management;
 Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a materiality
uncertainty exists related to events or conditions that may cast significant doubt on the
Cooperative’s ability to continue as a going concern;
 Obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement;
 Issue an auditor’s report that includes an opinion.

Audit Approach and Methodology

In response to the new normal practice of audit, we will apply a risk-based approach in
the audit of the Cooperative's financial statements.

The audit approach will be delivered in a remote audit methodology that will align our
audit process to provide users of Cooperative's financial statements with reasonable assurance
and enable us to perform effective and efficient audit procedures.

Remote auditing will optimize the use of technology to conduct auditing procedures. It
includes practical use of tools for document sharing, video conferencing, etc., but also taking
into consideration the security of the data and information.

In the delivery of the risk-based remote audit methodology, we will apply systematic
and relevant procedures below:

 Request the Cooperative's financial statements to assess and know the materiality level
to determine if identified misstatements are already material and therefore required to
be adjusted.
 a. Overall Materiality
It is determined at the overall financial statement level. This materiality level helps
the auditor to determine whether the proposed audit adjustments are significant or
not.

b. Performance Materiality
It is computed as a certain percentage of overall materiality in order to capture any
uncorrected misstatements, the total amount of which may exceed overall
materiality. This materiality level is used in scoping of financial statement line items
to be tested by the auditor and ensures that significant accounts in the financial
statements are covered by audit testing.

c. Specific Materiality
It is the materiality set by the auditor for particular classes of transactions, account
balances or disclosures for which misstatements, well though lower than overall
materiality could reasonably be expected to influence the economic decisions of
users of the financial statements.

 Ask for the soft copies of the following documents: (Kindly put a check  on the line if
the Cooperative provided the document.)

Schedules of:
a. Receivables (Loans, etc. include Aging) ___________________
b. Investments ___________________
c. Other Current Assets (if material) ___________________
d. Property and Equipment ___________________
e. Deposit Liabilities ___________________
f. Other Liabilities (if material) ___________________
g. Share Capital ___________________
h. Taxes and Licenses ___________________
i. List of Board Resolution ___________________
j. Current list of officers ___________________
k. Filed tax returns (1601C, 0619E, 1601EQ, etc) ___________________
l. Payroll Summary (in preparation for 1604CF) ___________________
m. Summary of Alphalist of Payees (for 1604E) ___________________
n. Amount of Total Loan Released for the year ___________________

 Determine the sample size to consider.

a. Cash and Cash Equivalents

Objective: To observe the cash count procedure of the cooperative

Procedure: Conduct a live video call during the cash count procedure
b. Receivables
Objective: To determine whether receivable balances exists as of the balance sheet
date

Procedure: Determine the sample size and sample population, request for the
details of the selected sample computation, and send the confirmation letters