Audit Program

for

LAND BANK OF THE PHILIPPINES Zamboanga City

Accounts

: LOAN RECEIVABLES Short Term Loan; Long Term Loan; Termed Loans; Others : January 01, 2013 to December 31, 2013

Audit Period

Audit Objectives and Assertions: 1. 2. 3. 4. To ascertain completeness and correctness of account balances as recorded in the books (Accuracy and Completeness). To determine that all Loan Receivables recorded actually exist (Existence). To determine whether all Loan Receivables transactions are contracted in accordance with applicable laws, rules and regulations (Regularity). To determine whether the account is properly and consistently classified and presented in the F/S and that disclosures are appropriate (Presentation and Disclosure).

Procedures
1. Completeness 1.1 Trace beginning balance to prior years (PYs) audit working paper/ending balance of PYs Financial Statements (F/S) and General Ledger (GL). Trace debit and credit postings in the GL to the Cash Receipts Journal/Check Disbursement Journal to the Report of Collections and Report of Checks Issued. Foot the debit and credit entries in the GL and established the balance. Compare the GL Balance with the balance in the TB or BS and the SL. Prepare proof of balance working paper Top Schedule. Investigate discrepancies, if any . Prepare and necessary. issue AOM, if

WP Ref

Audit Period

Target

Actual

Responsible

1.2

1.3

1.4 1.5 1.6 1.7

2. Existence 2.1 Obtain or prepare listings of all Loan Receivables accounts. 2.2 Prepare and send bank confirmation
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Procedures
letters (to management) be signed by

WP Ref

Audit Period

Target

Actual

Responsible

a. For

unconfirmed accounts, undertake alternative procedures i.e. review of available documents and/or information.

statements from 2.3 Obtain management (if none, prepare bank reconciliation statements) 3. Regularity 3.1 From list obtained in 2.1 select sample bank accounts to be verified as to: 3.1.a Correctness of computation of charges against loan proceeds. (Random sample taken from the Lists) 1.1.b Correctness of charging of bank account (Ex. Project of World Bank charged to ADB bank accounts). paper if

analysis-working 3.2 Prepare using the prescribed format. and 3.3 Prepare necessary. 4. Valuation issue

AOM,

4.1 Determine if foreign currency transactions are recorded in accordance with the accounting policy. and 4.2 Prepare necessary. issue AOM, if

5. Presentation and Disclosure the statement 5.1 Compare presentation with the NGAS. 5.1.1 Determine that the account is properly identified and classified in the F/S. 5.1.2 Determine the appropriateness/ completeness of disclosures made in the Notes to F/S.

5.1.3 Prepare and issue AOM, if necessary.

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Prepared by: Reviewed by: MYDEE C. MANDIN State Auditor IV Audit Team Leader

/misc2012 Fdn: NSO9 AP 2012 fn: CIB 2012 .doc

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