Sample Audit Procedures

Client name: Reference: C 1
Financial year: 2008 Page: 1
AUDIT PROGRAM
Assertions
Classes of transactions and events (Συναλλαγές και γεγονότα)

"O" Occurrence (Έχουν συμβεί)
"C" Completeness (Όλες είναι καταχωρημένες)
"A" Accuracy (Έχουν καταχωρηθεί στα ορθά ποσά)
"F" Cutoff (Λογίστηκαν στην ορθή περίοδο)
"L" Classification ('Έχουν καταχωρηθεί στην ορθή κατηγορία)
Account Balances (Υπόλοιπα)

"E" Existence (Είναι πραγματικά)
"R" Rights and Obligations (Τα δικαιούται/ έχει την υποχρέωση η επιχείρηση)
"C" Completeness (Όλα είναι καταχωρημένα)
"P" Valuation and Allocation (Είναι καταχωρημένα σύμφωνα με τις λογιστικές αρχές)
Statutory matters in financial statements (θέσμιες πληροφορίες στις οικονομικές καταστάσεις)

"1" Officers of the entity are reflected correctly (οι αξιωματούχοι παρουσιάζονται ορθά)
"2" Necessary statutory information is properly disclosed (οι θέσμιες πληροφορίες παρουσιάζονται ορθά)
"3" No information disclosed is inconsistent with the auditor's knowledge of the entity (δεν υπάρχουν στοιχεία που δεν
συνάδουν με τις οικονομικές καταστάσεις.")
AUDIT PROGRAM
No Procedure WP Ref or brief Initials Date

description of
problems arising
1 Planning phase procedures
1.1 Obtain a copy of clients systems notes for the key accounting systems
(eg sales, purchases, payroll, investments) operated by the client.
Alternatively hold a meeting with the client and write the systems
down.
1.2 On the notes obtained above highlight the key controls which help to
ensure the assertions (ie completeness, existence, occurrence,
accuracy etc.)
1.3 Select haphazardly one item at the start of a system eg sales order,
purchase acquisition, timesheet and walkthrough the system noted
above to the eventual cash flow and the entry into the nominal ledger.
1.4 Discuss with client their exposure to fraudulent activity. Consider

whether their assessment is appropriate and devise a test to address
the exposure where identified.
CONCLUSION
Based on the audit work done I am satisfied that all audit assertions applicable to this file section have been met and that
the transactions and balances contained in therein are fairly stated, subject to:
Senior Cleared
Delete as
Initials Date
appropriate:
Clearance of unadjusted errors noted on ....
Yes / N/A
Clearance of audit points outstanding on ....
Yes / N/A
Signature Date
Completed by senior
Reviewed and approved by manager on completion of audit
Reviewed and approved by partner on completion of audit

AUDIT PROGRAM
No Procedure Assertions WP Ref or brief Initials Date

description of
problems arising
2 Nominal ledger/Journal entries O C A F L E R C P
2.1 Obtain evidence that non standard journals

particularly around the year end are
authorised.
2.2 Review journal adjustments, assess for

reasonableness and consider supporting
evidence and authorisation
2.3 Reconcile the entity’s trial balance to the

financial statements and file
2.4 Agree opening balances with prior year

financial statements or trial balance.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
3 Subsequent events O C A F L E R C P
3.1 Review minutes of Board meetings since the

period end.
3.2 Review management accounts for periods

since the period end
3.3 Review the solicitors’ letters
3.4 Review any changes in share capital since

the period end and investigate dividends
paid and declared for appropriate non
adjusting event disclosure.
3.5 Confirm that the post balance sheet events

review has covered the entire period up to
the date of approval of the financial
statements
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
4 Going concern O C A F L E R C P
4.1 Obtain from management forecasts of cash

flow, profit and loss account and balance
sheets (if available) or review entity’s
expectations regarding commercial activities
over the coming twelve months. Consider
and document:
-Profitability
-Cash flow trends
AUDIT PROGRAM

description of
problems arising
4.2 Consult directors of the entity and review

information already obtained during the
audit. Consider and document such factors
as:
-Sales orders/loss of any major customers
-Likelihood of continued availability of staff,
and of the goods and services used in the
entity’s operations
-Ability of the entity to adapt to changing
circumstances
-Finance problems
-Exceeding agreed financial facilities within
the projections
-Duration of agreed banking and other
finance facilities
-Progress on any renegotiation of finance
facilities expiring during the projection
period
-Requirement to repay fixed term finance
within the projection period
-Major capital expenditure reduced,
postponed or cancelled
-Fixed assets wearing out and requiring
replacement
-Age of fixed assets and likelihood of need
for replacement
-Use of short term finance for long term
needs
-Finance through late payment of suppliers
-Extension of length of credit taken
-Increasing dependence on short term
finance
-Excessive run down of stocks; or necessary
increase in stock levels
-Poor liquidity
-Future onerous contractual obligations
-Loss of any major suppliers
-Deferral of purchases or acquisitions
-Significant new competitors
-Technological change with implications for
the entity’s goods or services
-Significant reliance on affiliated
undertakings or other related parties; use of
non-standard terms.
4.3 Having considered the indicative factors,

confirm whether or not the going concern
basis of accounting appropriate to the entity.
AUDIT PROGRAM

description of
problems arising
4.4 If the going concern basis of accounting is

not considered to be appropriate consider:
-Do the financial statements still give a true
and fair view; including the making of
appropriate disclosures by the directors?
-Is an unqualified audit report appropriate?
-Is any additional disclosure in or
qualification of the audit report required?
4.5 In reviewing the going concern status of the

entity, has a period of no less than one year
from the date of approval of the financial
statements been considered by the
directors?
-If not does the report of the directors make
the required disclosures?
-If the necessary disclosures have not been
made by the directors does the audit report
make the necessary disclosure?
4.6 Consider the confirmations to be made in

the letter of representation, for example the
directors' opinion on the continuing financial
support given to the entity.
4.7 Obtain a letter of financial support from the

party providing the finance.
4.8 Consider whether the financial resources of

the entity (including facilities available) are
likely to prove sufficient to enable it to
continue to trade for at least one year from
the date of the audit opinion.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
AUDIT PROGRAM

description of
problems arising
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
5 Intangible assets O C A F L E R C P
5.1 Prepare a schedule reconciling opening and

closing balances. Agreeing opening
balances to prior year financial statements
and closing balances to trial balance.
5.2 Agree cost of additions to supporting

documentation
5.3 For sale of intangible assets agree postings

to sale agreement and consider tax position
5.4 Review accounting policy for intangibles

and assess its reasonableness.
5.5 Recalculate the amortisation charge for the

period.
5.6 Consider whether there are any indications

of impairment. If there is calculate the
amount.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
6 Property, plant and equipment O C A F L E R C P
6.1 Prepare a fixed asset register lead schedule

showing the cost, accumulated
depreciation and net book value for each
asset
6.2 Perform analytical review and obtain

explanations for significant movements
compared to last year.
6.3 Obtain purchase invoices or other

corroborative evidence of acquisition for all
material additions
6.4 Ensure correct VAT treatment of all

additions
6.5 Check a sample of material looking fixed

assets and agree they are included in the
fixed asset register.
6.6 In respect of disposals or items scrapped

compute profit or loss on disposal
6.7 Ensure correct VAT treatment of all

disposals
6.8 Ensure fixed assets note and capital

allowances schedule are in agreement with
fixed asset register
6.9 Obtain evidence that depreciation charge is

properly calculated in accordance with
policy in financial statements.
6.10 Perform a proof in total of the depreciation

charge by class of material fixed assets.
Obtain the cost of the property plant and
equipment making broad adjustments in
respect of the timing of additions and
disposals and multiply by the annual
depreciation charge. Investigate any
significant differences between your
expectations and the actual charge
recorded.
6.11 Select a sample of assets and reperform

the depreciation charge calculation.
Investigate any difference between this
and the actual recorded for the sample.
AUDIT PROGRAM

description of
problems arising
6.12 Agree opening net book value to prior year

financial statements.
6.13 Check a sample of tangible fixed assets

from the fixed asset register to the physical
assets.
6.14 Check the documents of title for significant

assets, or obtain confirmation from third
party if held as security.
6.15 Where the client revalues assets as its

policy, obtain or prepare schedules
showing revaluations of assets in the
period, stating the basis of the calculations
and the qualifications of the valuers. Take
note of the date of the last valuation of all
assets. Confirm that valuations in the
current year are reasonable in your opinion
and that the time elapsed since the last
valuation is reasonable.
6.16 Where the client revalues assets as its

policy and there has been a revaluation in
the year, verify that the correct accounting
entry has been made.
6.17 Review financial statements policy and

ensure client has accounted in accordance
with it.

that tangible fixed assets may have been
subject to impairment during the period.
Where there are such indications carry out
an impairment review
6.19 Where assets are financed by leasing

arrangements that give rights
approximating to ownership (finance
leases), the assets are treated as if they
were purchased outright. The amount
capitalised is the present value of the
minimum lease payments payable during
the lease term. The corresponding leasing
commitments are shown as obligations
under finance leases. Depreciation on the
relevant assets is charged to the income
statement.
CONCLUSION
AUDIT PROGRAM

description of
problems arising
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
7 Other financial assets O C A F L E R C P
7.1 Prepare a detailed schedule of investments

showing opening figures, additions,
disposals and final figures. Agree opening
figures to prior year financial statements.
7.2 Perform analytical review and obtain

explanations for significant movements
compared to last year.
7.3 Where these investments are subsidiaries

and associates, prepare, or obtain from
client, schedule as at year end by name,
activity and percentage held.
7.4 For acquisitions agree cost to supporting

documentation
7.5 For disposals agree to supporting

documentation
7.6 For a sample of investments inspect share

certificates
7.7 Agree valuation of investments to

authoritative sources and confirm in
accordance with IAS 27, 28 or 39.

that investments may have been subject to
impairment during the period. Where there
are such indications carry out an
impairment review.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
AUDIT PROGRAM

description of
problems arising
Completed by senior

AUDIT PROGRAM

description of
problems arising
8 Inventories O C A F L E R C P
8.1 Prepare lead schedule and obtain

explanations for significant movements.
Corroborate.
8.2 Attend the year end stock take and

document your results. Conclude on
whether the system operated effectively to
produce an accurate count.
8.3 Review final priced stock sheets and trace

test counts made during observation of
physical stocktake to the priced stock
sheets. Obtain explanations for any
discrepancies.
8.4 For a sample of items trace quantities from

final priced stock sheets to rough stock
sheets and obtain explanations for
alterations.
8.5 Identify obsolete and slow-moving stocks

on hand and ensure that adequate
provision is made for potential diminished
value.
8.6 Assess reasonableness of management's

estimation in relation to obsolete and slow
moving stock.
8.7 Obtain a physical stock summary and

agree to stock figure in financial
statements
8.8 Test check costing of a sample of raw

material, a sample of work in progress and
a sample of finished goods stock lines by
reference to invoices and other price
sources for individual items.
8.9 For a sample of stock items check that

final selling price is greater than book
value. Where this is not the case
determine the net realisable value
adjustment required.
8.10 For a sample of despatches/ goods

received around the year-end perform cut-
off tests
CONCLUSION
AUDIT PROGRAM

description of
problems arising
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
9 Amount due from customers for O C A F L E R C P

contract work
9.1 Compare gross profit margin on contracts

to prior years and the expected margins
for enterprises in a similar line of business
and explain any unusual relationships
9.2 Compare work in progress to work

certified subsequent to year-end on a
contract by contract basis
9.3 Prepare or check the IR4 CON.1 form for

all contracts in progress during the period
and confirm calculation of taxable income
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
10 Trade receivables O C A F L E R C P

Discuss with client significant new
customers and lost customers.
10.2 Obtain a debtors listing and reconcile to

the accounts
10.3 Check the casting of the list of trade

debtor balances.
10.4 Perform a debtors circularisation on a

sample of debtors. Perform alternative
procedures where replies are not received
10.5 Investigate large, unusual and credit

balances in debtors listing
10.6 Compare collections subsequent to year-

end to debtor listing
10.7 Review slow on non-moving debts with

reference to aged listing, post balance
sheet receipts and discussion with client.
Consider providing for bad debts.
10.8 Where any amount has been estimated,

assess the reasonableness of any
estimations made by management.
10.9 Compare the number of days sales in trade

debtors for the period (or debtor days)
with that of the previous periods and
explain variations
10.10 Review the debtor list compared with the

debtor list from the previous period and
corroborate with documentary evidence
reasons for new names or names that are
no longer present.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
AUDIT PROGRAM

description of
problems arising

Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
11 Other receivables and prepayments O C A F L E R C P
11.1 Prepare a lead schedule of other debtors &

prepayments
11.2 Compare balances to previous years and

obtain explanations for major changes
11.3 Give a broad description of the various

items
11.4 Confirm the calculation of prepayments

CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
12 Bank balances O C A F L E R C P
12.1 Prepare lead schedule
12.2 For all bank accounts:

-Obtain a bank reconciliation statement
-Verify whether unpresented cheques
were presented in the following year
-Vouch other reconciling items
12.3 For all banks with which the client

maintained accounts during the year:
-Obtain copies of loan agreements for any
new borrowings and ensure correct
disclosure in the accounts
-Obtain confirmation letters and agree
account balances
-Review confirmation letters for details of
guarantees/ contingent liabilities and
ensure adequate disclosure in the financial
statements
12.4 For all loan balances obtain confirmations.
12.5 For all loan balances obtain copies of loan

agreements and ensure agreement has
been followed.
12.6 Consider whether any borrowing facilities

limit has been exceeded during the period
and whether any other covenants have
been complied with throughout the
period.
12.7 Ensure terms of loans, securities pledged

and renewal dates are disclosed.
12.8 Examine receipts and payments records

for any large or unusual items immediately
before or subsequent to the period end;
verify to supporting documentation
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
AUDIT PROGRAM

description of
problems arising

Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
13 Cash balances O C A F L E R C P
13.1 Prepare schedule of cash balances and

agree to the general ledger
13.2 Review cash balance throughout the year

and obtain explanations for unusual
fluctuations
13.3 Ensure that any post-dated cheques

included in cash have been deposited
after the year-end
13.4 Count cash if material and agree to cash

balance in the petty cash book
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
14 Trade payables O C A F L E R C P
14.1 Prepare lead schedule and ensure

classification is appropriate between less
than and greater than one year. Obtain
14.2 Obtain and verify explanations for

changes in supplier base
14.3 Calculate creditor days and obtain

explanations for significant changes.
14.4 Obtain a creditors listing and reconcile to

the accounts
14.5 Check the casting of the list of creditor

balances.
14.6 For a sample of suppliers agree balance

per books to suppliers' statements
14.7 For a sample of suppliers, obtain

confirmations of balances. Perform
alternative procedures where replies are
not received.
14.8 Review prior period list of trade creditors

for potentially significant omissions in the
current period.
14.9 Enquire if there are any disputed creditor

accounts.

14.11 Schedule and agree balances with group

and other affiliated undertakings.
14.12 Investigate significant debit balances in

list of trade creditors and accrue for
missing invoices if necessary to maintain
appropriate cut-off.
CONCLUSION
AUDIT PROGRAM

description of
problems arising
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
15 Other payables O C A F L E R C P
15.1 Prepare a lead schedule of other creditors

and accruals, compare balances to
previous years and obtain explanations
for major changes
15.2 Give a broad description of the various

items
15.3 Check calculation of material accruals
15.4 Agree SI contributions, pensions and

PAYE creditor to post year-end payments
15.5 To the extent not covered in the bank

section, obtain confirmations for material
loans.
15.6 Check details of any security held by

creditors, including reservation of title
clauses.
15.7 Check to source documentation for

material accruals and other creditors.
15.8 For new hire purchase contracts obtain

copies of all new agreements and cross-
reference to fixed asset additions.
15.9 For all hire purchase balances prepare a

schedule reconciling the outstanding
balance and capitalised interest for each
agreement at the beginning and end of
the year and agree hire purchase interest
released during the year to the profit and
loss account.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
AUDIT PROGRAM

description of
problems arising
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
16 Provisions O C A F L E R C P
16.1 Obtain or prepare a lead schedule.
16.2 For all provisions made in prior periods,

compare actual results or outcomes to
estimates made. Understand and
document reasons for variances.
16.3 Obtain supporting evidence for all

provisions made by the entity.
16.4 For all provisions made by the entity

confirm that the events giving rise to the
provision occurred prior to the balance
sheet date.
16.5 For all provisions made by the entity,

confirm the basis of calculation.
16.6 For provisions made in respect of legal

claims, obtain a letter from the client's
solicitor and consider the contents.
16.7 Include in representation letter.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
17 Share capital O C A F L E R C P
17.1 Prepare lead schedule.
17.2 Agree authorised capital to Memorandum

of Association and issued share capital to
register of members (For clients where
changes to capital are effected through
our office agree changes to
correspondence in Permanent audit file
or annual return)
17.3 Obtain documentary evidence that share

issues in the year have been;
-properly authorised,
-registered with the Registrar,
-properly disclosed in the notes to FS and
directors report.
17.4 Confirm the amount and treatment of the

proceeds of any issue of shares in the
period.
17.5 Confirm that any dividends paid and

payable are:
-Authorised,
-Paid from distributable reserves,
-Declared in GM before the year end to
be accounted for in the year,
-If proposed or declared after the year
end are simply disclosed in the financial
statements and directors report.
17.6 Note, and confirm to details held by the

Registrar, the names and other details of 1 2 3
directors who held office during the
period together with changes since the
balance sheet date.
17.7 Note, and confirm to details held by the

registrar, the name of the company 1 2 3
secretary(s) holding office during the
period together with changes since the
balance sheet date.
17.8 Note and confirm the director(s) to retire

by rotation, if applicable. 1 2 3
17.9 Review the search of the entity’s

statutory registers, if obtained. 1 2 3
17.10 Confirm that the entity’s statutory

records are up to date. 1 2 3
AUDIT PROGRAM

description of
problems arising
17.11 Examine minute books and file copies of

relevant minutes, or extracts thereof, of 1 2 3
directors’ meetings held during the period
and thereafter through to date of
signature of the audit report. Add
extracts of relevant information to
relevant file sections.
17.12 Review information within and associated

with the financial statements that is not 1 2 3
subject to audit (ie directors report) and
confirm that no disclosures or statements
made therein are inconsistent with
knowledge of the entity obtained as part
of audit procedures. Any instances of
inconsistency or inaccuracy should be
documented.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
18 Reserves O C A F L E R C P
18.1 Agree opening balances with prior year's

file
18.2 Prepare a schedule showing all

movements in reserves during the year
18.3 Confirm that all reserves of movements

are permitted or required to be taken
directly to reserves.
18.4 Confirm that all reserves of movements

have been properly recorded at the
correct amount.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
19 Revenues O C A F L E R C P
19.1 Prepare lead schedule showing all categories

of revenues and investigate new sources
and discontinued.
19.2 Discuss with management whether there

have been any significant changes to scope
of business, trading mechanisms or terms,
customer base or market locations,
promotional efforts. Consider potential
effects within analytical review.
19.3 Undertake appropriate analytical procedures

to obtain audit assurance concerning
turnover, to include Gross margin analysis
for five periods, including explanations,
Comparison with industry trends,
Extrapolation from previous periods,
Comparison with client budgets.
19.4 Review revenue recognition policy in the

financial statements and confirm
transactions have been treated accordingly.
19.5 Vouch a sample of receipts to: Sales

invoices, Despatch records, Stock records,
where available, Time records, or other
appropriate evidence of provision of services
19.6 Check a sample of sales invoices for

correctness of: Pricing, Arithmetical
accuracy, Sales taxes.
19.7 Vouch a sample of items from dispatch

records to invoices, checking that pricing is
correct.
19.8 Select a sample of consecutive sales from

the period and check numerical continuity of
sales invoices. Obtain explanations for
missing invoices.
19.9 Select a sample of credit notes and ensure

that they are properly authorised and
included in the accounting records on a
timely basis.
19.10 Check credit notes issued after the end of

the period and ensure that provision is made
for any relating to sales recorded in the
period.
AUDIT PROGRAM

description of
problems arising
19.11 Consider whether there are any other items

of income that have not been tested, and
design appropriate audit tests where
necessary.
19.12 Check sales invoices from both sides of the

balance sheet date and ensure that: They
are allocated to appropriate accounting
periods, The goods have been reflected
consistently in stock.
19.13 Obtain and verify an analysis of all profit and

loss account headings down to operating
profit, analysed between discontinued,
acquired and other continuing activities.
19.14 Consider disclosures in respect of differing

business sectors in accordance with IAS14
for listed companies only.
19.15 Compare other income sources with prior

period and enquire as to reasons for
discrepancies.
19.16 Test all non-trading income accounts to

receipts, returns records and other
appropriate supporting documentation.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
20 Cost of sales and Expenses O C A F L E R C P
20.1 Prepare separate lead schedules for cost of

sales and other expenses.
20.2 Undertake analytical review procedures for

other expenses including: Expense
comparison with previous periods,
Extrapolation from previous periods,
Comparison with entity budgets. Investigate
any significant movements.
20.3 Undertake appropriate analytical procedures

to obtain audit assurance concerning
purchases, to include: Gross margin analysis
for five periods, Extrapolation from previous
periods, Comparison with entity budgets.
20.4 Vouch a sample of purchase invoices

received in the period, ensuring: They are
addressed to the entity,
-They are for goods or services normally
used by the entity,
-They have been authorised by appropriate
individuals,
-Sales taxes have been correctly calculated
and treated
-They have been properly recorded in the
nominal ledger.
20.5 Vouch a sample of purchases from delivery

notes and goods received confirmations to
invoices.
20.6 Review overhead accounts, consider

whether items are tax allowable and ensure
there is adequate information in our file for
disclosure purposes. Give special
consideration to the following: interest, hire
of machinery, rent, travelling abroad,
commissions, subcontracted work, legal &
other professional fees, subscriptions
contributions and donations, bad debts,
insurances
20.7 Verify accuracy of cut-off by checking

purchase invoices around the end οf the
period and ensure that: They are
allocated to appropriate accounting periods,
The goods have been correctly treated in
stock.
-
AUDIT PROGRAM

description of
problems arising
20.8 Where any expense has been estimated,

20.9 Review repairs & renewals accounts for

capital items
20.10 Check a sample of expense invoices

received in the period, ensuring that:
-They are addressed to the entity
-They are for goods or services normally
used by the entity
-They have been authorised by appropriate
individuals
-Sales taxes have been correctly calculated
and treated
20.11 Ensure that the basis of allocation between

expense accounts is consistent with
previous periods.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
21 Payroll expenses O C A F L E R C P

Corroborate.
21.2 Obtain a copy of IR7 as filed with the tax

authorities and agree gross pay per IR7 to
salaries & wages cost in the financial
statements
21.3 Prepare a schedule of contributions from

payment slips and agree employee
contributions in total to IR7 and employers
contributions to the profit & loss account
21.4 For a sample of employees agree gross pay

to SI cards
21.5 Perform an overall reasonableness test by

taking the average number of employees in
the year and multiplying by the average
salary making the necessary adjustments
for timing. Compare your result
(expectation) with the actual charge in the
financial statements and investigate
material differences.
21.6 Select a sample of employees from the

payroll and meet them.
21.7 Verify that contributions to pension

schemes have been properly and accurately
recorded.
21.8 Obtain a listing of employee numbers.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
AUDIT PROGRAM

description of
problems arising
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
22 VAT O C A F L E R C P
22.1 Prepare a schedule summarising details on

VAT returns for the period and
- Reconcile VAT outputs to sales for the
year
- Compare VAT on outputs/inputs to total
outputs/inputs for each period and
investigate unusual relationships
22.2 For a sample of inputs check VAT treatment

and in particular ensure that disallowable
VAT has not been claimed. Disallowable
items include expenditure on: - immovable
property; - tobacco & alcohol; -
entertainment; - saloon motor vehicles
including fuel and repairs
22.3 Reconcile VAT account to VAT returns
22.4 Check after date payment of VAT to bank

statement for amount and deadline.
22.5 Discuss any correspondence from the VAT

authorities with senior staff at the client and
consider the risk of penalties. Document
your findings.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
23 Taxation O C A F L E R C P
23.1 Prepare a statement of tax accounts giving

details of all movements during the year
23.2 Obtain copies of receipts for payment of

taxes and check
23.3 Ensure interest paid on taxes is correctly

treated as a disallowed expense
23.4 Obtain or prepare the tax computation for

the year and discuss with the client. Review
for reasonableness.
23.5 Obtain an explanation for any significant

change in the annual tax charge compared
to prior year and document. Review for
reasonableness.
23.6 Document any disputes and investigations

currently underway with the tax inspector
and document an opinion as to the
expected resolution.
-
23.7 Verify reasonableness and accuracy of tax
year end creditor (or debtor).
23.8 Verify that deferred tax is calculated in full
on all temporary differences under the
liability method using the applicable tax
rates
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
AUDIT PROGRAM

description of
problems arising
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
24 Related party transactions and O C A F L E R C P

balances
24.1 Prepare a lead schedule and obtain

explanation for new parties and parties not
on it.
24.2 Obtain or prepare a list of all related parties.
24.3 Review board and other minutes for

references to potential related parties.
24.4 Obtain confirmations for all material related

party balances
24.5 Obtain or prepare a schedule of all

transactions with directors and their
connected persons, including guarantees,
deposits, transfers of intellectual property
and other information or expertise.
24.6 Obtain explanations for movements in

current accounts of directors and related
persons and prepare a summary statement
for each account. In particular collect details
of personal drawings, such as income tax
and social security payments, university fees
for children and capital expenditure.
Calculate monthly interest on debit balances
and take this into account in computation of
taxable profit.
24.7 Note and confirm directors' beneficial and

trust shareholdings at the beginning of the
period (or date of appointment if later) and
the end of the period, in the entity, other
group undertakings and other related
undertakings.
24.8 Note and confirm any directors’ share

options.

transactions with related parties other than
directors and their connected persons,
including guarantees, deposits, transfers of
intellectual property and other information or
expertise.
24.10 Consider whether the entity obtains or

provides any services to related parties
without charge, and provide a schedule of
any such transactions.
AUDIT PROGRAM

description of
problems arising
24.11 Obtain proof of the controlling party of the

entity, or that there is no such party.
24.12 Check supporting evidence that transactions

with related parties were on an arm’s length
basis.
24.13 Obtain for disclosure purposes, the

compensation details of the directors.
24.14 Obtain for disclosure purposes, the analysis

of balances and transactions with related
parties.
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising
25 Contingencies and commitments O C A F L E R C P

contingent liabilities identified by the entity.
Review supporting evidence for each matter
identified
25.2 For all contingent liabilities, ensure that the

event giving rise to the contingency occurred
prior to the balance sheet date.
25.3 Review confirmation letters from financial

institutions for disclosures in connection with
guarantees, future contractual obligations or
similar.
25.4 Review solicitors’ letters for potential

liabilities in respect of litigation or similar.
25.5 Review legal and professional fees to

determine if there are any matters under
consideration that might result in a
contingent liability.
25.6 Obtain supporting evidence for all

commitments identified by the entity.
25.7 Check the disclosure of all commitments and

contingent liabilities for both period and
amount. (Financial statements: T)
CONCLUSION
Senior Cleared
Delete as
Initials Date
appropriate:
Yes / N/A
Yes / N/A
Signature Date
Completed by senior

AUDIT PROGRAM

description of
problems arising

Sample Audit Procedures

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Client name: Reference: C 1

Financial year: 2008 Page: 1

Classes of transactions and events (Συναλλαγές και γεγονότα)

Account Balances (Υπόλοιπα)

Statutory matters in financial statements (θέσμιες πληροφορίες στις οικονομικές καταστάσεις)

No Procedure WP Ref or brief Initials Date

1 Planning phase procedures

1.4 Discuss with client their exposure to fraudulent activity. Consider

Reviewed and approved by manager on completion of audit

Reviewed and approved by partner on completion of audit

No Procedure Assertions WP Ref or brief Initials Date

2 Nominal ledger/Journal entries O C A F L E R C P

2.1 Obtain evidence that non standard journals

2.2 Review journal adjustments, assess for

2.3 Reconcile the entity’s trial balance to the

2.4 Agree opening balances with prior year

Reviewed and approved by manager on completion of audit

Reviewed and approved by partner on completion of audit

No Procedure Assertions WP Ref or brief Initials Date

3.1 Review minutes of Board meetings since the

3.2 Review management accounts for periods

3.3 Review the solicitors’ letters

3.4 Review any changes in share capital since

3.5 Confirm that the post balance sheet events

Reviewed and approved by manager on completion of audit

Reviewed and approved by partner on completion of audit

No Procedure Assertions WP Ref or brief Initials Date

4.1 Obtain from management forecasts of cash

No Procedure Assertions WP Ref or brief Initials Date

4.2 Consult directors of the entity and review

4.3 Having considered the indicative factors,

No Procedure Assertions WP Ref or brief Initials Date

4.4 If the going concern basis of accounting is

4.5 In reviewing the going concern status of the

4.6 Consider the confirmations to be made in

4.7 Obtain a letter of financial support from the

4.8 Consider whether the financial resources of

No Procedure Assertions WP Ref or brief Initials Date

Reviewed and approved by manager on completion of audit

Reviewed and approved by partner on completion of audit

No Procedure Assertions WP Ref or brief Initials Date

5.1 Prepare a schedule reconciling opening and

5.2 Agree cost of additions to supporting

5.3 For sale of intangible assets agree postings

5.4 Review accounting policy for intangibles

5.5 Recalculate the amortisation charge for the

5.6 Consider whether there are any indications

Reviewed and approved by manager on completion of audit

Reviewed and approved by partner on completion of audit

No Procedure Assertions WP Ref or brief Initials Date

6 Property, plant and equipment O C A F L E R C P

6.1 Prepare a fixed asset register lead schedule

6.2 Perform analytical review and obtain

6.3 Obtain purchase invoices or other

6.4 Ensure correct VAT treatment of all

6.5 Check a sample of material looking fixed

6.6 In respect of disposals or items scrapped

6.7 Ensure correct VAT treatment of all

6.8 Ensure fixed assets note and capital

6.9 Obtain evidence that depreciation charge is

6.10 Perform a proof in total of the depreciation

6.11 Select a sample of assets and reperform

No Procedure Assertions WP Ref or brief Initials Date