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Due From LGUs Audit Program

This document outlines an audit program to evaluate the "Due from LGUs" account. The audit objectives are to determine the accuracy of the account balance and correctness of the account. The audit procedures include tracing the account balance to trial balances and ledgers, verifying postings, analyzing long outstanding amounts, and checking that balances match between reciprocal accounts of provincial and local governments. Any deficiencies found would be investigated and summarized in an Audit Observation Memorandum.

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William A. Chakas Jr.
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186 views2 pages

Due From LGUs Audit Program

This document outlines an audit program to evaluate the "Due from LGUs" account. The audit objectives are to determine the accuracy of the account balance and correctness of the account. The audit procedures include tracing the account balance to trial balances and ledgers, verifying postings, analyzing long outstanding amounts, and checking that balances match between reciprocal accounts of provincial and local governments. Any deficiencies found would be investigated and summarized in an Audit Observation Memorandum.

Uploaded by

William A. Chakas Jr.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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(Letterhead)

Audit Program
Due from LGUs

Audit Thrust Area : Due from LGUs

Description : 1. This account is used to record the amount due from provinces,
cities, municipalities, barangays and other local government
units. (NGAS for LGUs).

2. This account is used to record amount of advances for


purchase of goods/services as authorized by law, fund transfers
to the LGUs for implementation of projects, share from LGUs
income and other receivables. Credit this account for delivery
of goods/services, liquidation of fund transfers and receipt of
share/payment of other receivables. (GAM for LGU)

Risk Statements : The risk that the Due from LGUs may not be correctly and
completely recorded and accounted in the books.

Audit Objectives : 1. To determine the accuracy of the account balance in the trial
balance/financial statements.
2. To determine the correctness of the Due from LGUs account.

Assi
WP
Audit Procedures gned Mandays
Ref
to
Audit Objective No. 1 - To determine the accuracy of the account balance in the trial balance/financial
statement (FS). 
1.1. Trace the composition and correctness of the account balance as
reflected in the FS as harmonized with the trial balance, general
ledger (GL) and subsidiary ledgers (SL) balances.
1.2. Check the subsidiary ledgers (SL) against schedules.
Schedule of due from LGUs
1.3. Verify the correctness of postings in the SL from the General
Journal (GJ) and the Journal Entry Voucher (JEV).

1.4. Check footings of the GL and SL.

1.5. Take note of deficiencies, if any, and investigate reasons for such.

1.6. Summarize audit results and prepare/issue AOM.


Audit Objective No. 2 - To determine the correctness of the Due from LGUs account.

2.1. Conduct analysis on the Due from LGUs account.


WP 2.1

2.2. Check for long outstanding accounts.

2.3. Verify balances of receivable (Due from LGUs) by the PG with


the reciprocal (Due to LGUs) by concerned
WP 2.3
Municipalities/Barangays.

2.4. Take note of deficiencies, if any, and investigate reasons for


such.

2.5. Summarize audit results and prepare/issue AOM.      

Prepared by:

(ATL) Date:
Reviewed by:

(SA) Date:

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