NIT. 900.456.

273-4
CRA 15 #6 33 LOCAR 202 SOGAMOSO- BOYACA
CEL. 3213771696 MSA AUDITORES
[email protected] LTDA
“AUDITS DONE WELL”
PLANNING MEMORANDUM

SOGAMOSO, MARCH 2, 2018

Hereby, taking into account the work plan planned for the execution of the contract
for the provision of services, the planning memorandum for the INVENTORIES
category is presented, in order to present the work guide that is available for the
audit, including the phases, processes and procedures thereof.

PURPOSE OF THE MEMORANDUM

Carry out the work guide (work papers) that will be used in the audit of the inventory
item in the financial statements, complying with the planning process established by
the information assurance standards as proof of compliance with this requirement.

CLIENT BACKGROUND.

The company CHEVILAM LTDA, is a CONSECIONARY whose corporate purpose

is the marketing of automobiles, participating in the economic growth of the region
through the promotion of employment and redistribution of wealth, CHEVILAM
LTDA is a company that was born in the city of Sogamoso in in 2005, meeting the
needs of citizens in general, characterized by the wide variety of vehicles with high
quality standards and at affordable prices. The organization offers automotive
financing, insurance, and technical assistance services.

1. OBJECTIVE OF THE AUDIT.

GENERAL

Develop in accordance with the International Auditing Standards (ISA), and in

accordance with the regulatory framework; The AUDIT of the INVENTORIES item
within the financial statements as of December 31, 2017, to issue an opinion on
whether the balances of the INVENTORIES item of the company CHEVILAM LTDA
are free of material misstatement resulting from fraud or error and reasonably
represent the situation. of the entity verifying whether they were prepared in
accordance with the international financial reporting standards (IFRS) for SMEs.

SPECIFIC

• Carry out the necessary planning for the audit assignment, concerning the
NIT. 900.456.273-4
CRA 15 #6 33 LOCAR 202 SOGAMOSO- BOYACA
CEL. 3213771696 MSA AUDITORES
[email protected] LTDA
“AUDITS DONE WELL”
INVENTORIES item as of December 31, 2017 of the company CHEVILAM
LTDA, by establishing the schedule of activities that will determine the
execution of actions within the audit.
• Practice the review and evaluation of the internal control system of the
company CHEVILAM LTDA, identifying the deficiencies of the system,
providing a response to those responsible for government and the
management of the entity.
• Evaluate the reality of the entity, to obtain relevant information on the status
of the INVENTORIES category of the company CHEVILAM LTDA as of
December 31, 2017.
• Report the INVENTORIES item within the financial statements as of
December 31, 2017, verifying that the item is free of material misstatement
resulting from fraud or error.

2. RESPONSIBILITY OF THE AUDITOR

The auditor must express his opinion according to the audit carried out in the
INVENTORIES category and will present the report in accordance with the ISAs,
and will also evaluate the respective adjustments of the accounting policies of the
company CHEVILAM LTDA; and according to the evidence he can give a
supported opinion.

3. OBLIGATIONS OF THE AUDITOR

The auditor's obligations are: express an opinion on these financial statements,

perform the audit in accordance with International Auditing Standards, plan the
audit, consider internal control relevant to the preparation and fair presentation of
the financial statements by the entity, with the in order to design procedures to
obtain audit evidence, evaluate the appropriateness of the accounting policies used
and the reasonableness of accounting estimates made by management, as well as
evaluate the general presentation of the financial statements.
NIT. 900.456.273-4
CRA 15 #6 33 LOCAR 202 SOGAMOSO- BOYACA
CEL. 3213771696 MSA AUDITORES
[email protected] LTDA
“AUDITS DONE WELL”

4. SCOPE OF THE AUDIT

Verify whether the balances of the INVENTORIES item within the financial
statements as of December 31, 2017 of the company CHEVILAM LTDA are free of
material misstatement resulting from fraud or error and faithfully and reasonably
reflect the situation of the entity.

5. PROCEDURES

PLANNING PHASE

The planning stage is carried out with the purpose of knowing the organization, and
determining the work plan that will be executed during the execution of the
assignment.

> Analysis of the company to examine

V Detailed analysis of the company to be examined
V Identify key payroll of the target entity to be audited

> Study and analysis of work assignment

> Define audit strategy
> Do walk tests
> Identify main risk factors
V Associate specific topics to processes
V Relate audit risk factors to specific topics
V Specify significant processes for the audit

> Preparation and approval of the budget

> Authorize the joint work plan
> Develop the audit planning memo

INTERNAL CONTROL

In this phase, the internal administrative and accounting control is evaluated, in order
to identify the existence and effectiveness of the control and verification procedures
of the activities of the accounting process, guaranteeing that the information meets
the fundamental characteristics of relevance and faithful representation.

> Assess audit risks

> Assess the risks of the audit
> Assess the effectiveness of internal controls in the organization
NIT. 900.456.273-4
CRA 15 #6 33 LOCAR 202 SOGAMOSO- BOYACA
CEL. 3213771696 MSA AUDITORES
[email protected] LTDA
“AUDITS DONE WELL”
> Plan meetings with those in charge of the organization to observe internal
control
V Structure procedures for the development of the internal control
questionnaire
V Develop the internal control questionnaire
V Describe observations found during the internal control questionnaire
> Make recommendations to solve errors found in the internal control form
> Submit the internal control report

AUDIT EXECUTION PHASE

In this phase, the audit evidence is obtained, the initial audit assignments are made,
opening balances, the audit program is created, its execution and the conclusions of
this stage are provided.

> Establish the audit program

> Design and development of the audit program
> Gather the evidence necessary to carry out the audit
V Determine the way in which inventories are made up
V Review of the evidence found
> Verify through media the veracity of inventory balances.
> Run the audit program
> Conclusion of the audit program.
> Prepare the draft audit report

REPORTING PHASE

For this phase, the audit report is structured based on the findings found during the
execution of the assignment, these are verified, socializing them with the partners of
the assignment until the final audit report is presented to be delivered to the entity
and socialized. with the same.

> Structuring of the audit report

> Verify that the assertions in the report are supported.
> Socialize with the work team
> Examination and acceptance of the report or report
> Report delivery
> Socialization of the report with the entity.
NIT. 900.456.273-4
CRA 15 #6 33 LOCAR 202 SOGAMOSO- BOYACA
CEL. 3213771696 MSA AUDITORES
[email protected] LTDA
“AUDITS DONE WELL”
POST-CLOSURE ACTIVITIES

It allows knowing and evaluating whether the processes, procedures and activities
were developed according to plan, complying with contractual obligations,
professional standards and legal and regulatory provisions determined by law,
generating continuous improvement in the processes that the firm signs. execute.

> Preparation of executive summary

> Issue conclusions on compliance and objective of the audit
> Performance self-assessment
> Delivery of work papers

6. TYPES OF OPINION
Provide an opinion on the audit report in accordance with ISA 700 (Formulation of
opinion in audit report on financial statements) and ISA 705 (Modified opinion on
audit report by independent auditor) taking into account the audit evidence obtained,
compared to the financial statements in the INVENTORIES item, which are not free of
material misstatement resulting from errors or fraud.

7. METHODOLOGY TO BE APPLIED
AUDIT TECHNIQUES

> General Study.

appreciation and judgment of the general characteristics of the company, the
accounts or the operations, through its most significant elements to draw the
conclusions, the study must be in-depth and the way it must be done.

> Analysis.
Study of the accounts and the inventory item within the financial statements.

> Inspection.
Physical verification of the material things into which the operations were translated
(cash, merchandise, goods, etc.).

MSA AUDITORES LTDA

AUDITS DONE WELL'
NIT. 900.456.273-4
CRA 15 #6 33 LOCAR 202 SOGAMOSO- BOYACA
CEL. 3213771696 MSA AUDITORES
[email protected] LTDA
“AUDITS DONE WELL”
> Confirmation.
Ratification by the Auditor of the authenticity of a balance, event or operation, in
which I participate and for which he is in a position to validly report on it.

> Investigation
Gather information through interviews or conversations with company officials and
employees.

> Observation.
Inspection of operations to verify how it is carried out in practice.

> Calculation.
Verification of the arithmetic corrections of those accounts or operations that are
fundamentally determined by calculations on precise bases.

8. BUDGET
The audit is budgeted to be carried out in 4 (FOUR) MONTHS regarding the following
phases.

• Planning: 1 month
• Internal control: 1 month
• Audit execution: 1 month
• Report: 3 weeks
• Events after closing: 2 weeks
NIT. 900.456.273-4
CRA 15 #6 33 LOCAR 202 SOGAMOSO- BOYACA
CEL. 3213771696 MSA AUDITORES
[email protected] LTDA
“AUDITS DONE WELL”
n,
(3 CUSTOMER CHEVILAM LTDA NIT 900.384.522-7

AUDIT FIRM MSA LTDA START DATE March 1, 2018 FINAL DATE June 31, 2018
"AUDITS DONE WELL"
FEE
NAME POST HOUR VALUE TOTAL HOURS TOTAL
SERGIO ANDRES BARRERA chief auditor $35.555,56 225 $8.000.000,0
YULI ALEJANDRA VIASUS SANDOVAL Assistant auditor $8.064,52 124 0 $1.000.000,0
0
ADMINISTRATION BY RESPONSIBLE $9.000.000,0
ADMINISTRATION, UNFORESEEN AND UTILITIES (AIU) 0
CONCEPT PERCENTAGE WORTH TOTAL
ADMINISTRATION 5% $450.000,0 $450.000,0
UNFORESEEN 5% 0 $450.000,0 0 $450.000,0
UTILITY 10% 0 $900.000,0 0 $900.000,0
TOTAL GENERAL EXPENSES 0 0 $1.800.000,00

TOTAL CONTRACT $10.800.000,00

PERSONNEL LINKED TO THE AUDIT:

• FOR DE SIDE OF THE COMPANY:

Company officials who have to do directly or indirectly with the INVENTORIES
category.

• BY THE AUDIT:

PERSONNEL IN CHARGE OF THE AUDIT

NAME POST
SERGIO ANDRES BARRERA chief auditor
YULI ALEJANDRA VIASUS SANDOVAL Assistant auditor

CORDIALLY

SERGIO ANDRES BARRERA GOMEZ

DC. 1057601001