Company XYZ Limited W/P Reference F2.1.

1
Prepared Mr. A Date DD/MM/YYY
By Y
Reviewed Mr. B Date DD/MM/YYY
By Y12- March
-2015
Period 31-Dec-2014
ended

Procedure Name: Comparison of current year opening balance year with the previous year closing balances

Test objective: To verify the completeness and existence of property, plant and equipment.

Procedures performed: 1. Obtained General Ledger of Property, Plant & Equipment.

2. Confirmed the previous year’s balance with the audited financial statements of the previous year.
3. Checked the current year’s balance with the balance as per nominal ledger.
4. Matched the result found during the audit with the amount shown in FS/GL.
5. Matched the prior year closing balance with the current year opening balance.

Opening Balance Confirmation:

SL. WDV
Particular's Balance as on Balance as on 01.01.2014 per Balance as on 01.01.2014 Audit
work
31.12.2013 per FS GL per FS
1 Land 1,172,024,058 1,172,024,058 1,172,024,058 ^
2 Building 394,622,449 394,622,449 394,622,449 ^
3 Plant and Machinery 947,639,598 947,639,598 947,639,598 ^
4 Furniture and fixture 78,452,633 78,452,633 78,452,633 ^
5 Electrical and other appliances 64,506,044 64,506,044 64,506,044 ^
6 Office machinery 28,517,751 28,517,751 28,517,751 ^
7 Vehicles 113,469,983 113,469,983 113,469,983 ^
8 Under construction 585,256,770 585,256,770 585,256,770 ^
Page 1 of 23
Total : 3,384,489,286 3,384,489,286 3,384,489,286

^ Trace opening balances from fixed assets register, general ledger and last year’s working papers.

Lead Schedule:
Sl. No. Particulars Per client @ 31.12.2014 Adjs Per Audit @ 31.12.2014 Referenced
-GL/FS DR(/CR) Trial
balance
1 Land 1,475,533,898 - 1,475,533,898 F
2 Building 503,628,182 - 503,628,182 F
3 Plant and Machinery 1,051,899,602 - 1,051,899,602 F
4 Furniture and fixture 87,366,031 - 87,366,031 F
5 Electrical and other appliances 93,543,756 - 93,543,756 F
6 Office machinery 20,240,403 - 20,240,403 F
7 Vehicles 165,660,369 - 165,660,369 F
8 Under construction 401,274,471 - 401,274,471 F
Total : 3,799,146,712 - 3,799,146,712

Analytical procedures:
To perform analytical procedures to identify significant fluctuation and to reduce risk by identifying risky areas.
Per client @ Adjs Per Audit @ Per Audit @ Variance
Particulars 31.12.2014 DR(/CR) 31.12.2014 31.12.2013 Taka % Notes
TB    A B( PY) A-B A-B /B
Land 1,475,533,898 - 1,475,533,898 1,172,024,05 303,509,840 26% N1
8
Building 503,628,182 - 503,628,182 394,622,449 109,005,733 28% N4
Plant and Machinery 1,051,899,602 - 1,051,899,602 947,639,598 104,260,004 11%
Furniture and fixture 87,366,031 - 87,366,031 78,452,633 8,913,398 11%
Electrical and other
appliances 93,543,756 - 93,543,756 64,506,044 29,037,712  45%  N2
Office machinery 20,240,403 - 20,240,403 28,517,751 (8,277,348)  - 29%
Vehicles 165,660,369 - 165,660,369 113,469,983 52,190,386  46%  N3

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Under construction 401,274,471 - 401,274,471 585,256,770 (183,982,299) -31% N4
Total : 3,799,146,712 - 3,799,146,712 3,384,489,28 414,657,426 12%  
6

Notes:
N1 XYZ Ltd has acquired new land for the extension of factory premises.
N2 XYZ Ltd. has been purchase new electric and other appliances.
N3 10 New Vehicles has been purchased due to expansion of operationof the company compare to prior year.
XYZ Ltd has transferred WIP to building in Fixed Asset schedule. as construction completed.
N4

Observation: No large and/or usual items were noted during inquiry to management. Previous year’s balance has been brought forward and current year’s
balance of nominal balance has been carried forward to the financial statements correctly.

Conclusion: The amount stated under Property, Plant and Equipment for the year ended December 31,2014 is fairly stated and properly disclosed in all
material respects..

Page 3 of 23
Company XYZ Limited W/P Reference F2.1.2
Prepared By Mr. A Date DD/MM/YYYY12-January-2015
Reviewed By Mr. B Date DD/MM/YYYY12-March-2015
Period ended 31-Dec-2014

Procedure Name: Examine any material journal entries or other adjustments made during the course of preparing the financial statements.

Objective: To check occurrence and accuracy of Property, Plant & Equipment.

Assertions covered: Occurrence, Accuracy.

Procedures performed: 1. Obtained General Ledger

2. Check there is any unusual journal entries or other adjustments
3. Vouched underlying Supporting

Sampling technique: 6 sample have been tested from Entire population of the Property, Plant & Equipment

Summary and evaluation of results: See the following working for results:

Results of work on occurrence and accuracy of Property, Plant & Equipment :

Sl. No. Audit
Date Voucher No Explanation Amount (Tk.)
work
1 12/12/2014 JV 1400/34 Purchase from A 24,518,000 ^
2 09/07/2014 JV 1021 Purchase from F 37,817,000 ^
3 09/07/2014 JV 1021 Purchase from E 768,753,000 ^
4 02/04/2014 BV PO 64 Purchase from B 987,960,323 ^
5 02/04/2014 BV JV 60 Purchase from D 67,567,177 ^
6 16 /3/2014 BV PO 119 Purchase from C 33,445,281 ^

^ Traced and agreed to the GL& FS.

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Observation:
Review of unusual Journal entries:
During the year under review we have reviewed GL and observed no large or unusual journal entries in the ledger head of Property, Plant & Equipment. We also check the
approval procedure of Journal entries and checked journal entries posted in the system and found no exception.

Conclusion: From above checking we are satisfied that the company has no large and or unusual journal entries in the ledger head of Property, Plant &Equipment.

Company: XYZ Limited W/P Reference: F2.1.3

Prepared By: Mr. A Date: DD/MM/YYYY19-January -2015
Reviewed By: Mr. B Date: DD/MM/YYYY12-Marcht-2015
Year Ended: 31-Dec-2014

Procedure Carry out physical inspection of assets including both current year additions and assets purchased in previous years. Ensure that they are all being used
Name: in the business .

Objective: To support the existence and completeness of property, plant and equipment.

Procedure Performed : 1. Inspected a sample of property, plant and equipment as we walked round the client’s premises. Physically inspected
each item and noted it to be in use, with no evidence of that the assets is impaired or the recoverable amount of an
asset is not less than its carrying amount. For each item checked to ensure that the item was contained on our records
of property, plant and equipment.
2. Ensure that the fixed assets are in usable condition.
3. Ensure that the fixed assets are tagged with proper ID number.
4. Made a selection of fixed assets held by client at year-end and physically inspect them to ensure that:
- Asset is owned and held by client.
- Remaining useful life appears to be correct
5. Pick a sample of property, plant and equipment from the floor and agree these back to the property, plant and
equipment register.

Assertion covered: Existence, Ownership and Accuracy.

Sampling We have used judgmental sampling based on monetary value and quantity ensuring that all categories of property, plant and equipment were
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technique: covered.

Risk: Low

Summary and evaluation of results: See the following working for results:

Results of work on Physical existence and completeness of Property, Plant and Equipment :( We have checked 70% of total assets however for working purpose
we only disclose 30 sample)

Sl. No. Year of purchase Details Category of Asset Net book value at 31/12/14 Audit work
BDT
1 2012 FA-1 Furniture and fixtures 250,000 *^
2 2013 FA-2 Furniture and fixtures 100,000 *^
3 2014 FA-3 Furniture and fixtures 275,000 *^
4 2014 FA-4 Furniture and fixtures 200,333 *^
5 2014 FA-5 Plant and Machinery 2,000,500 *^
6 2014 FA-6 Plant and Machinery 625,078 *^
7 2012 FA-7 Plant and Machinery 2,100,000 *^
8 2011 FA-8 Plant and Machinery 375,000 *^
9 2014 FA-10 Plant and Machinery 199,000 *^
10 2014 FA-15 Electric and Other Appliance 1,250,000 *^
11 2013 FA-20 Electric and Other Appliance 725,000 *^
12 2014 FA-21 Office Machinery 11,800,000 *^
13 2014 FA-52 Office Machinery 1,376,000 *^
14 2014 FA-60 Vehicles 3,200,000 *^
15 2014 FA-65 Vehicles 6,900,000 *^
16 2011 FA-65 Vehicles 4,800,000 1
17 2012 FA-65 Vehicles 6,500,000 *^
18 2014 FA-65 Vehicles 34,000,000 *^
19 2013 FA-25 Furniture and fixtures 780,000 *^
20 2011 FA-27 Furniture and fixtures 285,000 *^
21 2014 FA-118 Furniture and fixtures 115,000 2
22 2014 FA-227 Electric and other appliance 98,000 2
23 2014 FA-2256 Electric and other appliance 227,000 2
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24 2014 FA-187 Office equipment 125,000 2
25 2014 FA-225 Office equipment 254,000 2
26 2013 FA-98 Office equipment 587,000 2
27 2013 FA-197 Furniture and fixtures 268,000 2
28 2013 FA-387 Furniture and fixtures 287,456 2
29 2014 FA-257 Furniture and fixtures 358,452 2
30 2014 FA-272 358,452 2

^ Traced and agreed to the fixed asset records.

* Physically inspected at year-end and noted to be in existence and in use. No evidence that none of the assets is impaired or the recoverable amount of an asset is not
less than its carrying amount.
1 item, a motor vehicle was not on the premises as at the date of inspection. As an alternative test we confirmed that a vehicle registration document existed, the
company’s insurance policy covered the vehicle and there was evidence by way of an invoice from a relevant garage, that the vehicle had been serviced recently.
2. Assets identification Tag has not found, and information relating to capitalization date, and current written down value not found.

Addition work for  We have discussed with the management and reviewed the board minutes and the correspondence to gather information whether there
impairment testing is any policy or plan to discontinue or restructure the operation line at hand.
 We have discussed with the management and reviewed the board minutes and the correspondence to gather information whether there
is any assets which is not currently being used in the operation line.
 We have discussed with the management, supervisory staff at production level and maintenance personnel to gather information
whether there is any assets which require abnormal repair expenses to maintain its production capacity or useful life.

Observation:  All the items were found to be contained in the client’s records. No errors were found.
 Ensured that none of the assets is impaired or the recoverable amount of an asset is not less than its carrying amount. The sample
selected was representative of the population.
 1 item, a motor vehicle was not on the premises as at the date of inspection. As an alternative test we confirmed that a vehicle
registration document existed, the company’s insurance policy covered the vehicle and there was evidence by way of an invoice from a
relevant garage, that the vehicle had been serviced recently.
 The sample selected comprised 65 % of the total net book value of the assets of the company (excluding land and buildings).
 Assets Identification number has not found in some assets and Fixed assets register has not updated properly- we have issued
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 management report on the issue identified.
Conclus Based on the work performed, in our opinion the property, plant and equipment existed at the year-end. Property, plant and equipment recorded are owned by
ion the XYZ Ltd. and title is also in the name of XYZ Ltd.

Company: XYZ Limited W/P Reference: F2.1.4

Prepared By: Mr. A Date: DD/MM/YYYY20-January -2015
Reviewed By: Mr. B Date: DD/MM/YYYY12-March-2015
Year Ended: 31-Dec-2014

Test objective: To verify the ownership of land and buildings and office vehicles

Assertion covered: Ownership Confirmed

Procedures performed: 1. Obtained General Ledger of Property, Plant & Equipment.

2. Traced and agreed details of the property to the Land Registry Office to ensure valid ownership.
3. Confirmed with the title deed, Mutation Paper and Porcha etc.
4. Verify registration documents for all of the office vehicles

6 sample have been selected random basis.

Method of sample Selection:

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 Land value BDT 78,331,300
Summary and evaluation of
Traced and agreed ownership to Land Registry Office with title deed, Mutation Paper and Porcha ensuring that the property had
results
been registered in the name of the company. Formal notification of this was received from the Land Registry Office.

Conclusion Based on the work performed, in my opinion, the land is owned by the company

Company: XYZ Limited W/P Reference: F2.1.5

Prepared By: Mr. A Date: DD/MM/YYYY22-January -2015
Reviewed By: Mr. B Date: DD/MM/YYYY11-Marcht-2015
Year Ended: 31-Dec-2014

Procedure Name: Checking the addition of Property, Plant & Equipment.

Test Objective: To verify the valuation of additions to property, plant and equipment.

Procedur 1. Selected a sample of additions to property, plant and equipment during the year and agreed each item to the capital expenditure approvals and purchase
e Details: invoices., noting the amount was correct, ensuring it was net of VAT, correctly made out to the company and that it was recorded in the correct period.
2. Checked proper authorization and approval.

3. Ensured that additions to fixed assets do not include any amount of a nature of revenue expenditure.

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 4. Ensure that where full payment has not been made for what so ever reason, asset is recorded at full cost and balance has been recognized as liability.
5. they are correctly classified;
assets acquired were delivered prior to the balance sheet date.
7. Inspect evidence of ownership e.g. vehicle registration, property documents, machinery import documents etc.
8. For CWIP checked supporting documents like vendors' invoices, contractor bills, and other evidences. Checked contractor certificates of completion of
project and proper approval thereof and examine the stage of completion.

Assertions covered: Valuation, ownership, classification, cut off and disclosure

Method of sample Selected PPE addition items in order to cover >90% coverage for addition.
selection:
The 30 largest additions were chosen in order to obtain the maximum level of coverage. The sample was split equally as each category had
roughly the same value.

Risk: Medium Sample Size 30

Results of work on valuation of additions to property, plant and equipment.

Land
Date of purchase Voucher No Details Cost BDT Authorisation Classific Capital Title Paymen FA Reg Result
ation or notr ts
01/03/14 JV 134 FA -03 2,790,985 Y Y Y Y Bank Y Satisfactory
15/04/14 JV 191 FA-10 3,898,900 Y Y Y Y Bank Y Satisfactory
5/06/14 JV 221 FA – 13 4,980,000 Y Y Y Y Bank Y Satisfactory
03/02/14 BV PO120 FA- 09 5,622,890 Y Y Y Y Bank Y Satisfactory
13/10/14 BV PO 112 FA-19 30,567,678 Y Y Y Y Bank Y Satisfactory
01/11/14 BV PO 201 FA-26 7,669,750 Y Y Y Y Bank Y Satisfactory

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 Furniture and fixtures
Date of Voucher No Details Cost BDT Authorisatio Classificatio Capital or Title Payments FA Reg Result
purchase n n nor
01/01/14 JV 1400/34 FA -02 790,985 Y Y Y Y Bank Y Satisfactory
15/10/14 JV 1021 FA-09 898,900 Y Y Y Y Bank Y Satisfactory
25/06/14 JV 1021 FA – 12 980,000 Y Y Y Y Bank Y Satisfactory
03/02/14 JV 1400/34 FA- 10 622,890 Y Y Y Y Bank Y Satisfactory
13/11/14 BV PO 112 FA-29 567,678 Y Y Y Y Bank Y Satisfactory
01/12/14 BV PO 201 FA-36 669,750 Y Y Y Y Bank Y Satisfactory

Building
Date of Voucher Details Cost BDT Authorisatio Classificatio Capital or nor Titl Payments FA Reg Result
purchase No n n e
01/02/14 JV 141 FA -02 1,190,985 Y Y Y Y Bank Y Satisfactory
15/08/14 JV 221 FA-09 1,898,900 Y Y Y Y Bank Y Satisfactory
25/06/14 JV 180 FA – 12 1,980,000 Y Y Y Y Bank Y Satisfactory
03/02/14 JV 144 FA- 10 2,622,890 Y Y Y Y Bank Y Satisfactory
13/10/14 BV PO 122 FA-29 1,167,678 Y Y Y Y Bank Y Satisfactory
10/12/14 BV PO 200 FA-36 1,669,750 Y Y Y Y Bank Y Satisfactory

Plant and Machinery

Date of purchase Voucher Details Cost Authorisatio Classificatio Capital or nor Titl Payments FA Reg Result
No BDT n n e
13/09/14 BV PO 64 FA -02 923,860 Y Y Y Y Bank Y Satisfactory
05/01/14 BV JV 60 FA-09 821,500 Y Y Y Y Bank Y Satisfactory
23/06/14 BV PO 119 FA – 12 772,650 Y Y Y Y Bank Y Satisfactory
17/02/14 BV PO 112 FA- 10 692,140 Y Y Y Y Bank Y Satisfactory

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 13/03/14 BV PO 215 FA-29 591,380 Y Y Y Y Bank Y Satisfactory
14/08/14 BV JV 190 FA-36 891,200 Y Y Y Y Bank Y Satisfactory

Electric and Other Appliance

Date of Voucher Details Cost Authorisatio Classificatio Capital or Titl Payment FA Result
purchase No BDT n n nor e s Register
03/11/14 BV PO 194 FA -02 513,860 Y Y Y Y Bank Y Satisfactory
05/07/14 BV JV 107 FA-09 681,500 Y Y Y Y Bank Y Satisfactory
23/09/14 BV PO 119 FA – 12 902,650 Y Y Y Y Bank Y Satisfactory
17/05/14 BV PO 109 FA- 10 482,140 Y Y Y Y Bank Y Satisfactory
13/03/14 BV PO 98 FA-29 781,380 Y Y Y Y Bank Y Satisfactory
01/12/14 BV JV 212 FA-36 391,200 Y Y Y Y Bank Y Satisfactory

Office Machinery
Date of Voucher Details Cost BDT Authorisatio Classificatio Capital or Title Payments FA Reg Result
purchase No n n nor
01/09/14 FA -02 1,386,000 Y Y Y Y Bank Y Satisfactor
BV PO 164
y
03/05/14 FA-09 901,500 Y Y Y Y Bank Y Satisfactor
BV JV 160
y
02/06/14 FA – 520,650 Y Y Y Y Bank Y Satisfactor
BV PO 219
12 y
18/07/14 FA- 10 200,140 Y Y Y Y Bank Y Satisfactor
BV PO 261
y
10/03/14 FA-29 100,380 Y Y Y Y Bank Y Satisfactor
BV PO 164
y
17/12/14 FA-36 100,200 Y Y Y Y Bank Y Satisfactor
BV JV 128
y

Vehicles
Date of Voucher Detail Cost BDT Authorisatio Classificatio Capital or Title Payments FA Reg Result
purchase No s n n nor
13/01/14 BV PO 214 FA -02 5,000,000 Y Y Y Y Bank Y Satisfactor
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 y
05/02/14 FA-09 3,800,000 Y Y Y Y Bank Y Satisfactor
BV JV 117
y
23/08/14 FA – 5,000,000 Y Y Y Y Bank Y Satisfactor
BV PO 367
12 y
17/09/14 FA- 10 6,500,000 Y Y Y Y Bank Y Satisfactor
BV PO 465
y
13/11/14 FA-29 5,000,000 Y Y Y Y Bank Y Satisfactor
BV PO 477
y
14/12/14 FA-36 3,500,000 Y Y Y Y Bank Y Satisfactor
BV JV 219
y

Under construction
Date of Voucher Detail Cost BDT Authorisatio Classificatio Capital or Title Payments FA Reg Result
purchase No s n n nor

3/02/14 FA -02 90,000,00 Y Y Y Y Bank Y Satisfactor

BV PO 234
0 y
05/03/14 FA-09 70,000,00 Y Y Y Y Bank Y Satisfactor
BV JV 214
0 y
23/09/14 FA – 50,000,00 Y Y Y Y Bank Y Satisfactor
BV PO567
12 0 y
17/10/14 FA- 10 65,000,00 Y Y Y Y Bank Y Satisfactor
BV PO 665
0 y
3/11/14 FA-29 56,000,00 Y Y Y Y Bank Y Satisfactor
BV PO 717
0 y
4/12/14 FA-36 35,000,00 Y Y Y Y Bank Y Satisfactor
BV JV 819 0 y

Observation:  All the items were found to be correctly recorded and no errors were found.
 The sample selected comprised 99% of the total additions for the year.

Conclusion Based on the work performed, in our opinion the additions to property, plant and equipment were recorded at the correct value.

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Company: XYZ Limited W/P Reference: F2.1.5 (a)
Prepared By: Mr. A Date: DD/MM/YYYY22-January -2015
Reviewed By: Mr. B Date: DD/MM/YYYY11-March-2015
Year Ended: 31-Dec-2014

Procedure Name: Checking that of Under construction assets has been completed but not transferred to the fixed assets.

Test Objective: To verify the valuation of additions to under construction assets.

Procedure 1. Collect the list of assets under construction and enquire the management whether all completed assets has been duly transferred to the fixed assets or
Details: not.
2. Collect ageing schedule of assets wise CWIP and check the long outstanding amount laying the CWIP and reason for not complete the assets.

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 3. Physically verify the construction work on sample basis to confirm that assets still under construction.

4. Ensure that where full payment has not been made for construction work and this assets are complete but not transferred to the fixed assets.

5. Discuss with engineer/ related technical person regarding the construction in progress related work and assets wise estimated completion date and if
completed are the assets are ready for use or not if not reason for not ready to use.

Assertions covered: Existence, ownership and disclosure

Method of sample Collect full list of assets wise cost under construction in order to confirm that construction work has been completed but not transferred to the
selection:
fixed assets
The 6 largest cost of assets under construction were chosen in order to obtain the maximum level of coverage. The sample was split equally as
each category had roughly the same value.

Risk: Low Sample Size 6

Date of starting Category of Cost BDT Estimated Status up Reason for Physical Result
the assets completion to date not completed verification
construction date
01/03/11 Boundary wall 2,790,985 12-8-11 Not Court case Y Satisfactory
completed ongoing
15/04/12 Building No-3 10,898,900 10-11-14 Completed Electricity line Y Satisfactory
connection in
progress
5/06/14 CRB Machine 4,980,000 15.12.14 Machine Installation not Y Satisfactory
Results of work on CWIP
physically completed.
checking.
exists. Technical
expert will
come on mid of
February 14
03/11/14 Interior 1,622,890 31-12-14 Not Paint work is Y Satisfactory
decoration completed ongoing
13/8/14 40,567,678 31.11.14 Not Permission not Y Satisfactory
Gas Generator installed found from
(2 nos) Titas Gas
company.
01/11/14 Electrical 3,669,750 30.12.14 Page
Work on15 of 23
Necessary Y Satisfactory
installation in going accessories is
Building no 3 not available
01/01/12 40,336 Not found No Not known -
Glass work
information
 Observation:  All the items were found to be correctly explained and no errors were found except the glass work management is agreed to check it
again.
 The sample selected comprised 75% of the total balance of construction under progress.

Conclusion Based on the work performed, in our opinion the under construction work were recorded, disclosed properly. Value of glass work
insignificant

Company: XYZ Limited W/P Reference: F2.1.6

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Prepared By: Mr. A Date: DD/MM/YYYY24-January -2015
Reviewed By: Mr. B Date: DD/MM/YYYY12-March-2015
Year Ended: 31-Dec-2014

Procedure Name: Vouch disposals to available evidence.

Objective: To ensure that sale proceed have been correctly accounted for.

Procedure 1. sales proceeds/disposals have been correctly accounted for and examined documents supporting amounts for which assets were sold e.g. cash receipts.
Details: Confirmed this by reviewing the cash received book for the period to ensure no disposal proceeds were evident
2. Examined documents authorizing disposal.
3. They have been removed from the fixed asset register/listing.
4. Calculate gain or loss on disposal of fixed assts.

Assertions covered: Completeness, Accuracy

Sampling technique: Selected PPE Disposal items in order to cover >75% coverage for disposal.

Results of work on disposal of Property, Plant and Equipment’s:

Selling WDV PaymentProceeds from
Purchase
Date Voucher No Particulars Price disposal collection
Cost
BDT Mode
12/31/2014 JV 1400/167 Income from selling office furniture 88,000 138,000 40,000 Bank
12/31/2014 JV 1400/264 Sale of office furniture 29,800 39,800 1 Bank
12/31/2014 JV 1400/269 Income from selling office furniture 1,690 9,690 1 Bank
12/31/2014 JV 1400/274 Disposal entry - for of Computer & Other IT equipment 1,345 11,345 1 Bank
12/31/2014 JV 1400/276 Income from selling office furniture and equipment 4,396 5,396 1 Bank
12/31/2014 JV 1400/278 Disposal entry - for Computer & Other IT equipment 87,797 187,797 Bank
12/31/2014 JV 1400/279 Income from selling office furniture and equipment 1,483,800 Bank
483,800
Total 608,828 1,737,828  

Calculation of gain or loss

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 Selling WDV Check with FA
Purcha Profit on sale of
Particulars Price Register
se Cost assets
BDT
office Furniture 88,000 138,000 40,000 48,000 Assets have been
removed
Furniture 29,800 39,800 1 19799 Do
Office furniture 1,690 9,690 1 1689 Do
Computer & Other IT equipment 1,345 11,345 1 1344 Do
Office furniture and equipment 4,396 5,396 1 4395 Do
Computer & Other IT equipment 87,797 187,797 1 87,798 Do
Office furniture and equipment 483,800 1,483,800 20,000 463,800 Do

Observation No observation was noted.

Conclusion Based on the work performed, in our opinion the disposal to property, plant and equipment were recordedreceived at the correct value.

Page 18 of 23
 Company: XYZ Limited W/P Reference: F2.1.7
Prepared By: Mr. A Date: DD/MM/YYYY26-January -2015
Reviewed By: Mr. B Date: DD/MM/YYYY13-March-2015
Year Ended: 31-Dec-2014

Procedure Name: To check the depreciation calculation

Objective: To assure the occurrence, completeness and accuracy of recording depreciationin the reporting period.

Procedure 1. Obtained the schedule of depreciation calculation. Obtain movement schedule of tangible fixed assets and under Construction both for
details: cost and accumulated depreciation. Checked casting and cross casting of the schedule.
2. Checked whether depreciation were recorded in the correct accounting period.
3. Determine the reasonableness of accounting policy and depreciation method, rates and their consistency with prior years.
4. Check calculation of depreciation of selected assets.
5. Assess the reasonableness of allocation to manufacturing costs, admin cost etc

Assertions: Occurrence ,Completeness and Accuracy

Results of work on recalculation of depreciation on Cost recording sample basis:

Written Down
Cost Depreciation on Cost
Value as of
Adjustment,
Rat Balance as of
Name of assets Addition Transfer / Balance as Charged Adjustment/
Balance as of Balance as of e of
during the (Disposal) of during the (Disposal) during
1-Jan-14 31-Dec-14 Dep
year during the 1-Jan-14 year the year 31-Dec-14 31-Dec-14
. (%)
year
303,331,30
Land 427,942,340 0 178,540 731,452,180 - - - - 731,452,180

Building 381,258,422 27,048,784 20,441,433 428,748,639 40% 22,233,354 986,600 - 23,219,954 405,528,685
Plant and 1,062,587,83
Machinery 1,265,999,627 20,440,446 139,008,900 1,425,448,973 10% 349,077,655 14,105,522 (322,040) 362,861,137 6
Furniture and
fixture 108,354,568 26,855,460 180,585 135,390,613 10% 31,453,873 9,121,061 - 40,574,934 94,815,679
Electrical and
other appliances 87,670,654 23,362,882 58,057,800 169,091,336 10% 24,738,416 6,570,862 (94,210) 31,215,068 137,876,268
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 Office machinery 40,926,652 6,422,467 (198,500) 47,349,119 5% 13,407,246 10,452,957 (38,200) 23,822,003 23,527,116

Vehicles 202,024,543 76,251,612 (2,532,398) 275,743,757 5% 108,726,530 35,054,399 (687,350) 143,093,579 132,650,178
Leased Assets-
Vehicles 15,622,493 - (4,979,500) 10,642,993 5% 13,377,490 598,500 (3,789,500) 10,186,490 456,503
Under
construction 585,256,770 101,166,500 (181,413,423) 505,009,847 0% 505,009,847
Total as on 31
December 2014 3,115,056,069 584,879,451 28,743,437 3,728,877,457   563,014,564 76,889,901 (4,931,300) 634,973,165 3,093,904,292

Results of workon recalculation of depreciation on Revalued Value recordingsample basis:

Written
Revalued Value Depreciation on Revalued Value Down
Value as of
Adjustment, Balance as
Name of assets Rate
Addition Transfer / Balance as Charged Adjustment/ of
Balance as of Balance as of of
during the (Disposal) of during the (Disposal) during the
1-Jan-14 31-Dec-14 Dep.
year during the 1-Jan-14 year year
(%) 31-Dec-14 31-Dec-14
year

Land 744,081,718 - - 744,081,718 - - - 731,452,180

Building 38,483,654 - - 38,483,654 40% 2,886,273 765,890 - 3,652,163 503,628,182
Plant and
Machinery 56,379,485 - - 56,379,485 10% 25,661,859 5,579,800 (1,213) 31,240,446 1,051,899,602
Furniture and
fixture 3,814,918 - (3,840) 3,811,078 10% 2,262,980 358,750 - 2,621,730 87,366,031

Electrical and other

appliances 3,738,736 - (45,053) 3,693,683 10% 2,164,930 540,350 (30,064) 2,675,216 93,543,756
2,227,188 -
Office machinery 2,227,188 - - 5% 1,228,843 350,685 1,579,528 20,240,403

Vehicles 44,817,417 - (2,151,496) 42,665,921 5% 26,890,450 5,850,985 (1,000,950) 31,740,485 165,660,369

Total as on 31
December 2014 893,543,116 0 (2,200,389) 891,342,727   61,095,335 13,446,460 (1,032,227) 73,509,568 3,799,146,712

Allocation of Total Depreciation:

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 (a) Administrative Expenses BDT 325,911,384
(b) Distribution Expenses BDT 435,386,362
(c) Selling Expenses BDT 2,706,894,304

Observation: No observation was noted.

Conclusion Satisfactory.

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 Company: XYZ Limited W/P Reference: F2.1.8
Prepared By: Mr. A Date: DD/MM/YYYY28-
January -2015
Reviewed By: Mr. B Date: DD/MM/YYYY12-
March-2015
Year Ended: 31-Dec-2014

Procedure Name: Testing of presentation and disclosure

Objective: To check whether the matters to be disclosed relating to Property, Plant & Equipment
according to applicable reporting and legal framework (i.e. IBFRS, Companies Act 1994
and Securities and Exchange Rule 1987).

Procedure details: 1. Prepared a checklist of Property, Plant and Equipment are presented and all
disclosures have been given in accordance with the Organization Policy and
relevant IASs and Companies Act 1994.
2. Checked whether the items to be disclosed relating to Property, Plant &
Equipment have been disclosed properly.
3. Depreciation expense and gain/ loss on disposal has been accurately calculated
and appropriately disclosed.

Assertions covered: Presentation and disclosure

Sampling technique: Entire population.

Working on disclosure

SL Disclosure requirement Required by Disclosed Reference Remarks

No. in financial from financial
statements statements
?
1 Group accounting policy √ Note 392 Satisfactory
2 Depreciation Schedule √ Note 7 Satisfactory
3 Addition and disposal of tangible Companies Act 1994, √ Note 7 Satisfactory
assets SEC & BIAS
4 Separate disclosure for assets and √ Note 7 Satisfactory
depreciation
5 Disclosure related with Revaluation √ Note 7 Satisfactory

Observation: No observation was noted.

Conclusion Satisfactory.

Sample Evidence- Physical verification work-

Sample – Fixed Assets Register

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Disclaimer: Dummy audit working files have been prepared and published to improve the
quality of audit documentation of member firms providing audit services in Bangladesh.
Member firms providing audit services should not assume these dummy working files as
absolute benchmark for the purpose of preparing and keeping audit documentation. Every
audit client has unique characteristics and risks. International Standards on Auditing (ISA)
also requires to exercise engagement partner’s judgment on a number of areas in
conducting the audit of an entity. Therefore, member firms should use their professional
knowledge, skill, experiences along with these dummy working files to keep adequate and
appropriate working papers for each audit engagement. The preparers do not assume any
liability for drawing an inappropriate audit opinion based on the working papers prepared
on the basis of these dummy working files.

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