C

Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date

General Ledger Review

1 Take note of last year’s queries/ points carried forward

to next year to determine whether still relevant.

2 Take note of last year’s management letter and
management reply to determine whether any remedial
action has been taken.
3 Obtain documents required from client.

4 Agree opening balances in general ledger to last year’s

statutory accounts and schedules in working papers.

5 Confirm that trial balance at year-end agrees to client’s
account print out.
6 Obtain client’s management accounts, if any

7 scrutinize management accounts for any problematic

areas.
8 scrutinize client's year-end accounting journal entries
for large and unusual transactions.
9 Review Board Meetings' minutes, if there are any

Subsequent Events and Going Concern

1 Discuss with management any issues that have occurred

since the year end and ensure that all material items
have been identified. Record your discussions.
2 Follow up on specific issues identified when the main
audit work was done for example the recovery of
receivables.
3 Update the review to the date that the audit report is
signed.
4 Consider and record whether there are any issues of
concern in respect of going concern, paying particular
attention to the following (referring to the details in ISA
570, paragraph 8):
(a) financial issues, for example, losses or liquidity
problems
(b) operating issues, for example, loss of key management

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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
(c) other issues, for example, litigation

5 Review in conjunction with the directors, the

information available for the twelve months after the
accounts are being approved and consider whether the
going concern basis might still be appropriate at the end
of this period.
6 Consider, where a material uncertainty exists
concerning the appropriateness of the going concern
assumption, whether there is adequate disclosure in
respect of:
(a) the principal events or conditions that give rise to the
doubts, and
(b) the fact that the doubts exist, and what these
uncertainties imply
7 Where the going concern basis is not appropriate,
consider whether the necessary adjustments and
disclosures have been made.

Intangible Fixed Assets

1 Agree details of additions/disposals to supporting

documentation
2 Review documents of title and ensure that they are in
the name of the company
3 Calculate amortisation and ensure that it is in line with
IAS 38 and IFRS 3 (goodwill) and consistent with the
stated accounting policy (and is reasonable)
4 Consider any impairment review undertaken by the
directors to determine whether it is in compliance with
IAS 36 and whether there is a requirement for an
adjusted to the value.

Property, Plant and Equipment

1 Vouch Fixed Asset Additions

2 Carry out physical inspection of fixed assets,
particularly additions.
3 Trace any disposals to cash receipts / sales invoices.
Calculate profit / loss on disposals.
4 Review repairs expenses for fixed assets not capitalised.

10/29/2021 - 06:40:51
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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
5 Perform public registry searches for acquisition/ sale of
property held.
6 Confirm Hire Purchase Creditors

7 Prepare depreciation computation.

8 Prepare Property Plant and Equipment schedule

9 Consider any impairment review undertaken by the

directors to determine whether it is in compliance with
IAS 16 and IAS 36 and whether there is a requirement
for an adjustment to the value.

Investments

1 Agree details of additions/disposals to supporting

documentation
2 Inspect documents of title.

3 Work out profit / loss on disposal if necessary

4 Ensure correct classification (current and non-current).

5 Ensure reasonableness and recoverability

6 Confirm market value of investment.

7 Work out permanent diminution in value if required.

8 Calculate return and obtain dividend warrants.

9 Ensure correct classification of income in accounts

Related Parties

1 Confirm closing balances with related parties.

2 If closing balances do not agree, perform reconciliation.

3 Work out unrealized DOE if applicable.

Inventories

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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
I Inventory Check Attendance Audit Programme

1 Attend the inventory check and select a sample of items

from the floor and agree to the inventory sheets and
vice versa.
2 Agree details of the items selected at the inventory
check attendance to the final inventory sheets
3 Review final inventory sheets and confirm that all items
counted have been included
4 Obtain details of inventories held by third parties, and
consider how adequate audit evidence may be obtained
(in the light of its materiality) to verify its existence and
condition as at the year end
5 Identify any inventories held by the client on behalf of
third parties, ensuring that it is adequately segregated in
the warehouse and on the inventory lists
6 For work in progress, detail the steps that have been
taken to satisfy that it exists
7 Review records of work in progress and consider
whether there are any items missing
8 Ascertain and record details of the last movements in
and out of inventory, sufficient to be able to perform
effective cut-off testing at a later date
II Contract Work in Progress

1 Ensure the inventory attendance audit programme has

been completed
2 Agree details of the items noted at the inventory check
attendance to the final valuation of contract work in
progress
3 Review the final valuation of contract work in progress
and investigate any items recorded that were not seen
(or otherwise verified) during the inventory check
attendance
4 Confirm details of contract work in progress verified by
direct confirmation from third parties, considering their
independence of the audit client
5 Detail any other steps that have been taken to confirm

the existence of contract work in progress

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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
6 Consider the details of the last movements into
inventory recorded during the inventory check
attendance, together with the contract work in progress
records, and ensure that the correct cut-off has been
applied
7 Ascertain the method used for valuing contract work in
progress and consider whether
(a) it has been correctly applied (see also specific
procedures below)
(b) it is an acceptable basis of valuation under IAS 11

(c) it is consistent with previous years and with the

company's accounting policy
8 For a sample of contracts, ensure that:

(a) materials costs have been recorded accurately

(b) the allocation of labour costs has been applied correctly,

consistently and is reasonable
(c) the allocation of overheads has been applied correctly,
consistently and is reasonable
(d) any profit taken in the light of work carried out (i.e.
percentage of completion), costs to date, expected costs
to completion and the total contract value are
reasonable and prudent
(e) adequate provision has been made for any anticipated
losses
9 Consider the post year end proceeds in respects of
contracts, and any post year end remedial costs incurred
- consider whether these provide further evidence
regarding the profitability of the contracts
10 Test the casts and cross-casts of the contract work in
progress summaries
12 Agree the additions and calculations for a sample of
contracts
13 Where a professional valuer has been used, by either the
auditor or the client, for contract work in progress,
consider whether their work can be relied upon (ISA
620 or ISA 402)
14 Consider whether contracts have been accounted for in
accordance with IAS 11, ensuring in particular that
adequate evidence has been gathered regarding
profitability on a contract by contract basis

10/29/2021 - 06:40:51
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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
III Inventories

1 Obtain stock valuation sheets and stock taking sheets.

2 Scrutinize stock valuation sheets for any anomalies

3 Sample test stock taking sheets with physical stock

4 Confirm per unit costings

5 Identify damaged stock or stock held on behalf of third

parties
6 Identify stock on consignment

7 Adjust for closing stock

8 Obtain stock certificate

Trade and Other Receivables

1 Confirm debtors’ list balance to control account

balance.
2 Confirm a sample of balances with debtors'
circularisation
3 Check payments received after year-end

4 Assess recoverability of long outstanding debtors with

client
5 Segregate related company balances

6 Remove negative balances and include with creditors

7 Account for unrealized DOE if any

8 Prepare a list of and vouch prepayments.

Trade and Other Payables O

1 Confirm creditors’ list balance to control account

2 Confirm a sample of balances with creditors’ statements

10/29/2021 - 06:40:51
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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
3 Check payments affected after year-end

4 Confirm long outstanding creditors with client

5 Segregate related company balances

6 Remove negative balances and include with debtors

7 Account for unrealized DOE if any

8 Prepare list of and vouch accruals at year end

Cash and Bank Borrowings

1 Confirm value of first deposit in subsequent year with

cash at year end
2 Obtain bank statements at year end

3 Obtain bank reconciliation at year end

4 Obtain sanction letter from client

5 Obtain bank confirmation letter from office

6 Account for unrealized DOE if any

7 Check presentation date of unpresented cheques at year

end
8 Confirm cut off by reviewing cheque stabs

Share Capital, Reserves and Retained earnings

1 Agree movements in share capital to the Articles of

Incorporation.
2 Agree classification and movements on the reserve
accounts, reviewing supporting documentation and
calculations.
3 Confirm any movements on reserves are permitted by
legislation and International Financial Reporting
Standards

10/29/2021 - 06:40:51
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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
4 Confirm payment of interim dividend if any

5 Appropriately record and disclose any dividend

declared before or after the end of the financial
year/period.

Direct and Indirect Taxation and Deferred Taxation

1 Calculate the direct taxation liability, based on the tax

computations prepared by, or on behalf of, the client

2 Reconcile the opening and closing taxation liabilities,
and investigate any large or unusual items (agreeing to
support documentation and computation)
3 Calculate the deferred tax asset or liability on all timing
differences
4 Prepare a reconciliation of direct taxation, reconciling
the tax charge (including deferred tax) to the profit in
the accounts
5 Ensure that the appropriate reconciliation is provided in
the notes to the accounts, where the company is subject
to the requirements of IAS 12
6 Prepare a VAT reconciliation statement reconciling
sales and purchases as per accounts, to sales and
purchases declared on the VAT returns.
7 Reconcile VAT due/ refundable as at end of the year as
per accounts, to VAT due/ refundable as per VAT
returns.

Provisions, Contingent Liabilities and Commitments

1 Prepare or obtain a list of provisions, contingencies and

commitments, and vouch to supporting documentation
and compare to previous period
2 Consider using the work of an expert when forming an
opinion regarding the value of a contingent asset or
liability

10/29/2021 - 06:40:51
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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
3 Send a letter to the company's legal adviser to obtain
confirmation of the existence and value of any actual or
potential claims noted, and seeking information
concerning any additional contingencies
4 Ensure that provisions have only been made when
allowed by IAS 37
5 Ensure the necessary disclosures required by IAS 37
have been made in respect of contingent liabilities
6 Ensure the pension scheme liabilities (and other
employee benefits accrued) have been accounted for in
accordance with IAS 19

Sales and Cost of Sales

1 Perform bank deposits test by reconciling deposits

made into the different bank accounts to the sales figure
as per books and VAT returns.
2 Check numerical sequence of sales invoices raised
during the financial year/ period.
3 Review a sample of sales invoices and credit notes
either side of the period end and ensure that they have
been accounted for in the correct period
4 Review a sample of purchase invoices and credit notes
either side of the period end and ensure that they have
been accounted for in the correct period
5 Select a sample of source documents and trace through
to evidence of invoicing and cash receipt, agreeing all
calculations on the invoices
6 Select a sample of payments made to trade creditors and
vouch to supporting documentation ensuring:
(a) the invoice is in the correct name

(b) the invoice has been approved for payment

(c) the invoice has been agreed back to a delivery note or

goods received note
(d) indirect tax on inputs has been reclaimed and accounted
for correctly
(e) the general ledger analysis is reasonable

7 Reconcile sales and purchases as per books, to

corresponding amounts as per VAT returns.

10/29/2021 - 06:40:51
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Client___________________________________ Audit Manager

Audit Senior
Year/ Period ended_________________________ Audit Clerk
Date started
Partner Review
AUDIT PROGRAM Signature
Date

SECTION W/P Comment Initial

Ref and date
8 Confirm other income with source documents.

Expenses

1 Inquire into and make notes of reasons for any major

variations from last year's figures.
2 Review general ledger accounts for entries requiring
disclosure:
(a) equipment hire (for finance leases)
(b) rent (for finance leases and other financial
commitments)
(c) repairs and renewals (for capital items)

(d) legal costs (for capital items, indications of

contingencies, doubtful receivables etc.)
(e) other accounts (specify)

3 Vouch a %age of expenses

Payroll

1 Obtain an Alphalist for Employees

2 Obtain a Schedule of Directors'Compensation

3 Confirm directors' remuneration with personal tax

return
4 Prepare a summary of Wages, Salaries and NI suitable
for disclosure
5 Perform Wages Reconciliation

6 Calculate average salaries of employees during the year

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