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Audit Procedures For Coops
Audit Procedures For Coops
PRACTICAL
APPROACHES TO
THE AUDIT OF
COOP ACCOUNTS
OBJECTIVE OF AN AUDIT OF
FINANCIAL STATEMENTS
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AUDITOR’S RESPONSIBILITY
TO CONSIDER FRAUD, ERROR
AND NONCOMPLIANCE
Philippine Standards on
Auditing 240 and 250
DEFINITION
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CLIENT’S RESPONSIBILITIES
AUDITOR’S RESPONSIBILITIES
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CONSIDERING NONCOMPLIANCE
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DOCUMENTATION
Yes
Illegal Acts Yes No Yes (One level above)
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AUDIT EVIDENCE
PHILIPPINE STANDARD ON AUDITING 500
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PRACTICAL TIPS IN
GATHERING AUDIT
EVIDENCE FOR
COOPERATIVE ACCOUNTS
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• For past due loans, ask the coop: what are they doing to
collect them? Are they improving their credit policies to
install controls over loans and receivables?
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ADVANCES TO OFFICERS
INVENTORY
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INVENTORY
OTHER ASSETS
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INVESTMENTS
- Equity instrument
- Publicly listed – at fair value through profit or loss (
SUBJECT TO AMENDMENT: AT FAIR VALUE THROUGH
EQUITY)
- Non-publicly listed or externally managed- at cost less
impairment
INVESTMENTS
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INVESTMENTS
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DEPOSIT LIABILITIES
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SHARE CAPITAL
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SHARE CAPITAL
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DONATIONS/GRANTS
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STATUTORY FUNDS/INTEREST ON
SHARE CAPITAL AND PATRONAGE
REFUND PAYABLE
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SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
PROCEDURES TO BE UNDERTAKEN:
1. Inquiring of management about the occurrence of
subsequent events
2. Reviewing procedures management has established to
ensure that subsequent events are identified
3. Reading the minutes of meetings of board of directors and
shareholders
4. Sending a letter of inquiry to the entity’s lawyers
concerning litigation and claims
5. Reading the latest available interim financial statements
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• When, after the date of the report but before the financial
statements are issued, the auditor becomes aware of a fact
which may affect the financial statements, the auditor should
consider whether the financial statements need amendment,
should discuss the matter with management and should take
the action appropriate in the circumstances.
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Thank You!
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