AUDIT PROCEDURES – Foundation

 Walkthrough – every year, regardless of the situation

 RE: Walkthrough questionnaire – unang tinatanong: may change ba sa organizational chart?
 Vry impt: obtaining evidence
 Also important: let them know na kailangan natin sila in the future for follow ups, contact details: important

EXECUTION

 Control – any procedure that the client is using that mitigates MM

 Usual SAD nominal amount: 5% ( accdnt to GAM)

NOTES:

 Discrepancy: not always an exception, kapag may valid explanation why not
 Hingiin na lahat ng necessary documents, wag pabalikbalik beks

Short video:

Start

Introduce wassap. Explaining what is a walk through and how it is done, and pweds ba?

Probing questions:

Explain

To ensure that an dere is accurately recorded

What if the situation is not in the manual, how do you deal with it?

Is the manager always available?

Is it true – complete details ?

You cant alter?

What if you left one of these blank

Can you change the total?

Do customers complain re: prices? Does it happen parati?

What happens if credit limit is reached

DI ba nababadtrip customers re: credit limit?

Hu u and pweds ba humingi ng print oit

CONTROLLER
Is that correct: re: credit limit to be checked after the order is placed?

What happens when a sales order is received

What can make you unblock if reached na yung credit limit na??

Hindi ba risky yun???

Can I have a look on today’s report

Anong ganap after momakita report?

Are you the only one and who gets thes reports

Pano pag wala ka???

Hindi ba mahirapyun kasi di ba sabi mo kailagan kilala mo yung customer??

Crossing out?

Patingin bes

Upon clearing, di na kasama sa report tomorrow?

How frequent na cclear yung reports

May ganap ba na yung mga pinagbigyan mo di nakabayad?

Pwngw xopy ng blocked orders

Pweds ba ko fumollow up

JULY 14

Pretend to know

It was immaterial so I dint look into it

Not asking how

Email, no discussion of data

Meet face to face to gauge their response and ask follow up questions

Counter check if it make sense – yung answers nila

Detailed understandin: pweds useful sa other parts of audit

INDEXING AND CROSSREFERENCING

Left – comes from

Right – goes to

Audit Procedures: Cash

 Assertions related to assets: existence, valuation, presentation and disclosure, completeness

 Major assertions/concerns for asset accounts: existence and valuation: YYY: more susceptible to overstatement
 SCOT for cash account: collection and disbursements
 WCGW for cash transactions: duplicates, unreversed postdated, misappropriated, not properly segregated thus
being susceptible to manipulation