Audit Program

Loans and receivables
1,149,250,559 372,517,017 776,733,542

313,795,104 792,900,557 -479,105,453
1,463,045,663 1,165,417,574 297,628,089
Financial Statements Line Item Account
Cash and cash equivalents Petty Cash, Revolving Funds
Cash in Bank
Loans and Receivables All Types of loans

Loans payable All Types of loans
Interest Expense and Accrued

Interest
Deposit Liabilities
Interest income, service fees,

Income
other income
Audit Procedures
Conduct a cash count of undeposited collections, petty cash, and other funds.
> Obtain custodian’s signature to acknowledge return of items counted

> Reconcile items counted with general ledger balances
> Trace undeposited collections counted to bank reconciliations
> Follow up dispositions of items in cash counted:
- Undeposited collections should be traced to bank deposits

- Checks accommodated in petty cash should be deposited after the count to establish their validity
- IOUs in the petty cash should be confirmed and traced to collections in the next payroll period
- Expense vouchers should be traced to the succeeding replenishment voucher
> Coordinate cash count with count of marketable securities and other negotiable assets of the client
> Obtain confirmation of year-end fund balances of cash not counted in branches or other offices
Confirm bank balance by direct correspondence with all banks in which the client has had deposits and loans during the yea
Obtain bank reconciliation

- Check arithmetical accuracy of reconciliation
- Trace balance per book to the general ledger balance of cash account
- Trace balance per bank to bank statement and compare with amount confirmed by bank
- Establish authenticity of reconciling items by reference to their respective sources like bank debit or credit advices or duly a
vouchers
- Investigate checks outstanding for a long period of time
- Investigate any unusual reconciling items
- Where internal control over cash is weak, consider preparing a proof of cash reconciliation
Determine any restrictions on availability of cash
Obtain subsidiary ledger of all types of loans and agree to trial balance.
Select top 10 borrowers and send confirmation for outstanding loan balance.
Select 10 loan releases during the year and inspect the required loan forms. Check if it follows the loan policy.
Obtain aging of loans and receivables. Review adequacy of the allowance for uncollectable accounts in accordance with Coop
1. Compare current year balances with prior year and ensure reasonableness of changes during the year. Inquire into and obta
unexpected changes.
2. Obtain a schedule of loans payable (including debt outstanding at the end of the prior year, as well as any new debt or rene
beginning and ending balances and borrowings and repayments during the year, and perform the following:
> Make inquiries of knowledgeable management.

> Consider any evidence of additional debt obtained through examination of minutes of the board, significant contracts, confi
accounts
3. For each lender (or selected lenders) with which Coop had debt outstanding at the prior year end or during the current year
client prepare, a confirmation request. 4. Compare replies to requests. Prepare, or have the client prepare, reconciliations
1. Obtain a schedule of accrued interest expense. Test the summarization and trace the total or the individual amounts, as app
ledger.
2. Make a selection of debt instruments tested in Procedure 1 and, for each item selected, perform the following:
> Based on the information in the confirmation concerning the date through which interest was paid and the applicable intere
amount of accrued interest
3. Calculate overall interest expense on loans for the year, and compare with recorded interest expense
4. Read the provisions in loan and debt agreements (and update descriptions thereof contained in our permanent files, if appl
following:
> Test that the client is in compliance with loan covenants and other significant provisions of the agreements
> If there are any provisions with which the client is not in compliance, determine whether the debt should be classified as cur
the provisions has been waived by the lender, obtain confirmation of the waiver from the lender
1. Examine randomly one day deposit slips for possible withholding of funds. The date of the deposit slip should be the postin
Investigate any exception.
1. Compare current year with prior year and budgeted amounts to anyalyse the variation in the income. Inquire and documen
variation

Audit Program

Uploaded by

Copyright:

Available Formats

Audit Program

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Audit Program

Uploaded by

Copyright:

Available Formats

Loans and receivables

1,149,250,559 372,517,017 776,733,542

Cash and cash equivalents Petty Cash, Revolving Funds

Loans and Receivables All Types of loans

Interest Expense and Accrued

Interest income, service fees,

> Obtain custodian’s signature to acknowledge return of items counted

- Undeposited collections should be traced to bank deposits

Obtain bank reconciliation

Determine any restrictions on availability of cash

> Make inquiries of knowledgeable management.

You might also like