LEGAL COMPANY NAME CLIENT: GRACE CORPORATION

BALANCE SHEET DATE: For the Year Ended December 31, 2011

AUDIT PROGRAM FOR CASH

Audit Objectives Assertions
1. To determine whether cash exists at year-end and cash Existence or occurrence
related transactions occur within the year.
2. To determine that all cash are reflected on the statement
of financial position at year-end
3. To determine whether all cash transactions are recorded in Completeness
the proper accounting period
4. To determine that cash balances are available for use Rights and obligations
without restrictions or if with restrictions properly
indicated in the statement of financial position
5. To determine if cash is recorded and presented at the Valuation and allocation
proper amount
6. To determine whether cash is presented in accordance Presentation and disclosure
with generally accepted accounting principle

Audit Procedures W.P. DONE

REF. By Date
1. Obtain or Prepare a Comparative Summary
 Trace totals to the general ledger and the previous audit’s
working papers
2. Account for all Bank Accounts
 Ascertain that all bank accounts are included in the
summary; inquire as to why any account on the last
summary is omitted from the current audit summary.
3. Test Mathematical Accuracy of Bank Reconciliations
 a. Obtain copies of division’s bank reconciliations and
test their mathematical accuracy
4. Trace Book Balances to the General Ledger
 Trace the book balances on the entity’s bank
reconciliations to the comparative summary
5. Scan the period-end bank reconciliations
 Scan the period-end bank reconciliations for significant
unusual reconciling items and adjustments made to agree
the reconciliations to the comparative summary. Obtain
evidence to supporting these items and adjustments by
inquiry or examination of supporting documentation.
6. Confirm Cash Balances
 Confirm selected period-end balances by direct
correspondence with banks. Consider including all
accounts open during any part of the period. The
confirmation request should include inquiries as to the
amount of the account balance and whether the accounts
bears interest.
7. Test Bank Reconciliations
 Review reconciling items on the bank reconciliations as
follows:
1. Obtain bank statements and related supporting
documents (if normally available) for the period
subsequent to the balance sheet date
2. Trace outstanding checks listed on the bank
reconciliations, but not listed on the bank statements
obtained in (a) above to the cash disbursements
records for the period prior to the balance sheet date.
3. Trace deposits in transit on the bank reconciliations to
the subsequent bank statements and the cash receipts
records for the period prior to the balance sheet date
4. Trace other reconciling items to supporting
documentation and entries in the cash records.
8. Test Completeness of Cash Transactions
 Determine how the entity ensures the completeness of
cash transactions. Obtain evidence that the procedures
operate as prescribes.
9. Test mathematical accuracy of cash records
 Test mathematical accuracy of cash receipts and
disbursements records and the postings of those records
to the cash control account
10. Examine Bank Statements for reconciling items
 Determine that paid checks, deposits and debit and credit
advices appearing on the bank statements obtained in step
7 above issued on or before the balance sheet date appear
in the period-end reconciliations.
11. Examine Cash Records for Reconciling Items
 Examine cash receipts and disbursements records for a
period before the balance sheet date to ascertain that all
reconciling items are appropriately included in the
entity’s bank reconciliations.
12. Test Transfers Between the Entity’s Bank Accounts
 Determine whether any transfers of funds between the
entity’s bank accounts have occurred near the balance
sheet date. Verify that the balance sheet date. Verify that
 the transfers were recorded in the books in the same
accounting period and that any transfers not recorded by
the bank in the same accounting period appear in the
appropriate bank reconciliations
13. Review Restrictions and Related Disclosures. Inquire of
Management about cash restrictions
 Inquire the management whether cash balances are
restricted as to use or are the property of others. When
balances include the property of others, determine that the
related liability has been recorded. Determine that
appropriate disclosures have been made
14. Additional Procedures: Count Cash on Hand
 Where material, establish physical control over cash on
hand as of the balance sheet date and count it in the
presence of the custodian(s). Obtain the signature of the
custodian(s) acknowledging that the funds were counted
in their presence and returned intact.
 Reconcile balances as determined in N to control
accounts and trace reconciling items to supporting
documentation if the count is at a date other than the
period-end, reconcile activity to the balance sheet date.
Determine whether there are unreimbursed expenses that
should be reflected in the accounts.
15. Consider Checks Released After Period End
 Determine through inquiry whether any checks drawn
before period-end were released after period-end.
Consider obtaining the numbers of the last checks written
for the current financial period. Consider whether any
reversing entries are necessary

AUDIT PROGRAM FOR RECEIVABLES AND SALES

Audit Objectives Financial Statement
Assertions
a. Receivables reflected in the balance sheet exist, are for Existence or occurrence
valid transactions, and include all authentic obligations Rights and obligations
of third parties to the entity Completeness
b. Billings are for the correct amount and uncollectible Existence or occurrence
accounts are promptly identified and provided for. The Valuation and allocation
allowance for uncollectible accounts is adequate
c. Receivables are properly classified in the balance sheet Presentation and disclosures
between current and noncurrent assets and disclosures
are adequate with respect to assigned, pledged, unbilled,
discounted and related-party receivables
 Audit Procedures W.P. DONE
REF. By Date
1. Perform the following analytical procedures for accounts receivables
and investigate any significant fluctuations or deviations from the
expected balances
a. Compare the current year’s account balance with the prior-year’s
account balances for gross receivables; allowance for doubtful
accounts and allowances.
b. Compare monthly sales by product line for the current year with
monthly sales for the prior year and the first few months
subsequent to year- end
c. Compare the aging categories of the year’s current year’s account
receivable with the prior year’s and/or industry data
d. Compute the following ratios for the current year and compare with
the prior year’s:
 Accounts receivable turnover
 Days sale in accounts receivable
 Ratio of allowance for uncollectible accounts to gross accounts
receivable and credit sales
 Ratio of write-offs to credit sales
 Ratio of sales and allowances to credit sales
 Ratio of customer discounts to credit sales
 Ratio of gross profit to credit sales
2. Prepare or obtain form the client an aged trial balance of trade
accounts receivables and perform the following:
a. Test the arithmetical accuracy of the aged trial balance and the
aging categories therein
b. Reconcile the total balance to the general ledger control account
balance
c. Note and investigate any unusual entries
d. Summarize the total credit balances and make appropriate
reclassification entry, if material
e. On a selective balance, trace individual account balances in the
aged trial balance to individual subsidiary ledgers and vice versa
f. Determine which accounts receivable should be confirmed
3. select customer accounts form the aged trial balance for confirmation
procedure and perform the following:
a. Arrange the confirmation requests to be signed by the client and
mailed directly by the auditor. Maintain control over confirmation
process at all times
b. Trace balances included in individual confirmation requests to
subsidiary accounts
 c. Mail confirmation requests using envelopes with the auditor’s
return address
d. Send second requests for positive confirmations on which there is
no reply and consider registered or certified mail for second
requests
e. If the clients requests exemption from confirmation for any
accounts selected by the auditor, obtain and document satisfactory
explanations, and determine necessity for alternative procedures
4. Process the confirmation replies and summarize the results of
confirmation procedures as follows:
a. For positive confirmation requests to which no reply was received
and accounts exempted from confirmation at the client’s request
b. Indicate the total accounts and balances confirmed without
exceptions, confirmations reconciled, and non-replies or exempted
accounts with alternative procedures performed
5. For accounts receivable confirmed on a date other than the balance
sheet date, prepare or obtain from the client an analysis of transactions
between the confirmation date and the balance sheet date, and perform
the following:
a. Trace the balance sheet as of the confirmation date to the aged trial
balance
b. Trace accounts received per analysis to the cash receipts journal
and/or bank statements
c. Trace sales/revenue amounts per the analysis to the sales/revenue
journal
d. Determine the reasonableness and propriety of any other
reconciling items
e. Trace the ending balance per the analysis to the trial balance as of
the balance sheet date
f. Scan the accounts receivable and sales activity during the period
and investigate any unusual activity
g. Determine whether any accounts or notes receivable have been
pledged, assigned or discounted
6. Determine whether any accounts or notes receivable are owed by
employees or related parties, and if so, perform the following:
a. Determine the nature and purpose of the transaction that resulted
in the receivable balance
b. Determine whether transactions were properly executed and
approved by an official of the company or the board of directors
c. Consider obtaining positive confirmation requests for such
balances
d. Evaluate the collectability of the balances outstanding
7. For notes and accounts receivable with maturities greater than one
year, perform the following:
a. Evaluate if the principal and interest payments will not be collected
in accordance with their contractual terms,
 b. If either interest or principal payments will not be collected in
accordance with their contractual terms, determine whether an
allowance for credit loss has been computed
8. Test the adequacy of the allowance for uncollectible accounts as
follows:
a. Review subsequent cash collections of accounts balances
b. Review accounts written off during the period
c. Determine if write-offs have been properly authorized and examine
related supporting documentation
d. Determine if there are any collection problems with accounts
receivable currently classified as currents assets. If so, consider
whether such accounts should be classified to noncurrent assets.
Determine the client’s plans for collection and the probability that
these efforts will be successful
e. Perform and review ratio analyses for relationships
9. Perform sales cutoff procedures and ascertain that receivables are
recorded in the proper accounting period:
a. From the population of purchasing documents, trace the last few
purchases of the year of the sales journal and determine that they
were properly included in accounts receivable as of balance sheet
date
b. From the population of purchasing documents, trace the first few
purchases subsequent the year end to the sales journal and
determine that they were properly excluded from accounts
receivable as of the balance sheet date
c. Using the sales journal, trace the last few entries of the year from
the sales journal to the shipping documents and determine that
they were properly included in accounts receivable as of balance
sheet date
d. Using the sales journal, trace the first few entries subsequent to
year end from the sales journal to the shipping documents and
determine that they were properly excluded from accounts
receivable as of the balance sheet date
10. If the auditor is concerned about the risk of fraud, audit procedures
such as the following should be considered in addition to the ones
listed above:
a. Expand the number of accounts receivable confirmations and
pursue all non-replies and discrepancies
b. Confirm amounts written off that appear unusual, such as write
offs balances due form continuing customers
c. Compare sales price to list price
d. Ascertain that shipping documents and invoices are pre numbered
sequentially and accounted for
e. Examine original documents and invoices and shipping
documents and be alert for positive alterations
 f. Agree daily cash receipts detail to the bank statements and
investigate unusual. Lags

AUDIT PROGRAM FOR INVENTORIES AND COST OF SALES

Audit Objectives Assertions
a. To determine whether inventories exists at year-end Existence or occurrence
and represent items held for sale in the ordinary course
of business
b. To determine whether all transactions related to Completeness
inventory are recorded in the proper accounting period
c. To determine that inventory listings are accurately
complied and inventory quantities include all items on
hand and in transit
d. To determine whether the company has legal title or Rights and obligations
ownership rights to inventory items and inventories
exclude items billed to customers or owned by others
e. To determine whether the inventories are properly Valuation or allocation
stated with respect to:
 Cost determined by an acceptable method
consistently applied
 Slow moving, excess, defective, and obsolete
identified and reduced to replacement cost or net
realizable value if lower than cost
f. To determine that the inventories and cost of goods sold Presentation and Disclosures
are presented and classified in the financial statements
in accordance with PAS/PFRS

Audit Procedures W.P. DONE

REF. By Date
1. Meet with client’s personnel in charge of the physical; count of
the inventory and perform the following planning procedures
a. Determine the physical inventory observation date, the
locations of the inventory including outside locations and
warehouses, client supervisor staff in charge of the inventory,
the materiality of inventory levels at the respective locations,
and whether any outside specialists will be used in counting the
inventory.
b. Obtain an understanding of the procedures that will be used by
the client to count the inventory. Review any inventory
instructions, location maps, sample of tags to be used, and other
relevant information that will be used to document the inventory
procedures.
 c. Tour the client’s inventory locations and determine which
inventory items will be material to the overall financial
statements when priced and extended
d. Determine the nature and extent of any inventory held for the
client by warehouses or other third parties and the need to
confirm or observe such inventory.
2. On the physical inventory date, perform the following procedures:
a. Tour the premises; evaluate the inventory arrangements; and
recommend appropriate changes as needed.
b. Determine whether property not owned by the clients clearly
segregated and identified
c. Determine the appropriate cutoff control numbers for
receiving and shipping documents and obtain copies
d. Ascertain that receiving and shipping departments are
informed about appropriate cutoff procedures
e. Observe and note the client’s practices and procedures
regarding segregation and identification of slow-moving,
damaged, or obsolete inventory
f. Examine samples of inventory items for source of
identification, description, measure, and status of completion
g. Observe count teams and determine whether the client’s
instructions and procedures are being properly followed.
h. Ascertain the pre-numbered inventory tickets and/or count
sheets are properly controlled and accounted for
i. Make test counts, particularly of high-value items, and record
test count information such as item number, description,
quantity, and other pertinent information that would assist in
tracing the inventory item to the final inventory listing
j. Observe nay omissions form count and ask for recounts in
case of errors
k. Note any inventory movement during the observation and
obtain adequate explanations
l. Determine whether any inventory appears to be obsolete,
slow-moving, damaged, or very old and whether the client has
properly identified those items. Consider preparing a
summary of these items.
m. Determine if all inventory count sheets or tags have been
accounted for. Obtain a summary of tags used, unused,
voided, or damaged and summarize the sequences of tags or
count sheets into these categories
3. If the auditor is unable to observe the physical inventory at the
balance sheet date, perform the following procedures:
a. Test inventory transactions occurring between the balance
sheet date and the date of the subsequent physical inventory
procedures. Vouch inventory purchases to receiving
documents and vendor invoices. Vouch cost of sales
 transactions to customer purchase orders and shipping
documents.
b. Review documentation of the physical count taken by the
client at the balance sheet date. Trace selected quantities from
the inventory listing to the count sheets or tags, and from the
count sheets or tags to the inventory listing.
c. Compare gross profit for the last month of the year under audit
to gross profit for the first month of the subsequent to assess
reasonableness of cutoff.
Reconciliation and Valuation of Inventory
4. Obtain an understanding of the procedures used by the client to
summarize, reconcile, and value the inventory and test these
procedures as follows:
a. On a test basis, trace tag sequences of used, unused, voided,
and damaged to the final inventory listing summary and
ascertain consistent treatment. Investigate any tags that have
been added or deleted.
b. Trace test counts noted during the observation of the physical
inventory to the final inventory listing summary and
investigate any differences
c. Test the arithmetical accuracy of the final inventory listing
summary with respect to both quantities and peso value
d. Reconcile the final inventory listing summary to the general
ledger and review book to physical adjustments. Investigate
large adjustments for possible inventory shrinkage, motives to
overstate inventory, or weaknesses in the client’s system
5. Determine the inventory method used and determine whether
such method is consistently applied.
a. For purchased inventory items, compare on a test basis the
unit price used in the final inventory listing summary to
current price lists, recent sales invoices, or recent vendor
invoices
b. Compare inventory turnover ratio and gross profit percentage
of the current period to prior periods
c. Compare quantities on hand for selected items with
quantities noted on the sales invoices to determine that the
quantities on hand are excessive
6. Perform the following shipping and receiving cutoff procedures
with respect to cutoff information obtained at the physical
inventory observation date:
a. On a test basis, determine whether the last few shipments of
inventory before the physical inventory observation date
have been excluded for inventory and included in sales for
the period under audit
b. On a test basis, determine whether the first few shipments
of inventory after the physical inventory observation date
 have been included in inventory and excluded from sales for
the period under audit
c. On a test basis, determine whether the last few inventory
items received before the physical inventory observation
date have been included in inventory and accounts payable
for the period under audit.
d. Determine the propriety and reasonableness of any other
reconciling items
7. Perform the following analytical procedures for inventories and
investigate any significant fluctuations or deviations from the
expected balances:
a. Compare the current year’s account balances with the prior
year’s account balances for inventories and the reserves for
slow-moving or obsolete items
b. Compute the following ratios for the current year and
compare with the prior year’s ratios:
 Inventory Turnover
 Average age of inventory
 Gross profit Percentage
 Shrinkage ratio
8. If the auditor is concerned about the risk of fraud, audit
procedures such as he following should be considered in addition
to the ones listed above:
a. Examine individual entries in the general ledger inventory
account to search for expenses or other items that are
improperly charged to inventory
b. Scrutinize any material book to physical inventory
adjustments and examine supporting documents
c. Review year-end accruals and adjustment to the inventory
account and ascertain that the entries are normal and
required
d. Look for evidence of bulk sales at steep discounts which
could indicate a declining value for the products
e. Examine journal entries made to the inventory account
subsequent to year-end
f. Expand the inventory cutoff procedures
g. Confirm accounts payable
9. Determine if any inventory is pledged or subject to liens
10. Determine if the inventory is properly classified in the balance
sheet and if adequate disclosure is made with respect to the
valuation method, major components of inventory, and pledged
inventory/
AUDIT PROGRAM FOR INVESTMENTS
Audit Objectives Assertions
a. Investments reflected in the balance sheet include securities Existence or occurrence
on hand and in custody of third parties, and physical Completeness
evidence of ownership exists Rights and obligations
b. Investment transactions and related income or loss are Existence or occurrence
recorded correctly as to account, amount, and period Valuation or allocation
c. Investments are properly valued, and loss in value is Valuation or allocation
promptly identified and provided for
d. Investments are properly segregated between current and Presentation and Disclosure
noncurrent assets are disclosed in accordance with PFRS

Audit Procedures W.P. DONE

REF. By Date
1. For investments in securities, such as bonds and stocks:
a. Prepare an obtain from the client a detailed analysis of such
investments, showing the following:
 The classification of the maturity
 The detailed description of the securities and the terms
 The nominal quantity and the balance at cost, market,
or other basis, as applicable
 Detail of additions, sales or disposals for the current
period
 Detail of investment income
b. Trace the arithmetical accuracy of the analysis
c. Trace opening balances to the prior-period and year-end
balances to the general ledger
d. Inspect the securities on hand and determine if they are
owned by the client, note serial and certificate numbers
e. Determine whether security transactions were properly
authorized by examining of minutes of BOD
f. Trace payments to payment orders and cash receipts to cash
receipts journal.
g. Test the reasonableness of investment income (dividends,
interest income), if the amount is material.
h. Test the propriety of the classification of securities as
trading, held-to-maturity, or available-for-sale
i. Determine whether any security has been pledged or
assigned.
2. Evaluate whether the presentation and disclosure of derivatives
and securities are in conformity with PFRS as follows:
a. Determine whether the accounting principles selected and
applied have general acceptance.
 b. Determine whether the accounting principles are
appropriate in the circumstances.
3. If the auditor is concerned about the risk of fraud, audit
procedures such as the following should be considered in
addition to the ones listed above:
a. Verify the fair value of securities using multiple brokers or
third parties.
b. Verify the fair value of securities using multiple brokers or
third parties.
c. Expand tests of details and trace all transactions to the
appropriate accounts.
d. Trace sales proceeds and investment income to bank
statements.
e. Trace cost of investment purchases to payment orders and
bank statements.
f. Review all journal entries related to investments and
examine supporting documents.
4. For transfers of financial assets, determine that the transaction
has been accounted for in accordance with PFRS

AUDIT PROGRAM FOR PROPERTY, PLANT AND EQUIPMENT

Audit Objectives Assertions
a. To determine whether property, plant and equipment included in the Existence or
statement of financial position physically exist. Additions include only occurrence
the capitalizable cost of assets purchased, constructed, or leased and
retirements are removed
b. To determine that property and equipment include all capitalizable Completeness
costs and capitalizable costs are not expensed
c. To determine that the company has legal title or equivalent ownership Rights and
rights to property and equipment included in the statement of financial disclosures
position and the related lease obligation of capitalized leased assets is
recognized
d. To determine that property and equipment is stared at cost and Valuation or
allowances for depreciation or depletion are computed on the basis of allocation
acceptable and consistent methods
e. To determine that property and equipment described and classified in Presentation and
the statement of financial position and related disclosures are adequate disclosure
 Audit Procedures W.P. DONE
REF. By Date
1. Obtain or Prepare a Detailed Analysis of Account Balances
A. Obtain an understanding of the accounting policies relevant to
property, plant and equipment and depreciation. Obtain or prepare
an analysis of those accounts, including:
a. Description of accounts by classification
b. Balances at the beginning of period
c. Additions and depreciation expense during the period
d. Disposals (assets sold, abandoned, written off)
e. Balances at the end of period
f. Trace the beginning and ending balances to the general ledger
and previous audit’s working papers
2. Trace Balances for Reasonableness, expected and unexpected
fluctuations between periods and obvious omissions
3. Test mathematical accuracy of the analysis
4. Examine Documentation and Reconcile Detail Records
A. Examine documentation that supports property, plant and
equipment additions
B. Examine documentation (e.g., bills of sale, authorization) that
supports asset disposals and related adjustments to accumulated
depreciation
C. Reconcile the analysis to detailed records of PPE
5. Recompute or Apply Analytics to Test Depreciation
A. Depreciation whether the depreciation practices followed by the
company are in conformity with GAAP and consistent with prior
period
6. Compare Charges or Credits to Income Statement Account
A. Compare amounts charged against (write-offs, loss on disposal) or
credited with income statement accounts. Investigate significant
differences
7. Perform Procedures to Test Completeness of Account Balance
A. Ascertain the completeness of PPE by reviewing fluctuations in
the repair and maintenance accounts and, where appropriate,
examine charges to these accounts to determine whether amounts
should be capitalized
Additional Procedures:
8. Physically Inspect Assets
A. Review the entity’s procedures for ascertaining the existence and
ownership of recorded assets and consider the necessity of
independently testing the physical existence of and, if appropriate,
the title to PPE
 9. Consider Carrying Value of Assets
a. Consider whether adjustments should be made to reflect the
inability to recover the carrying value of assets
10. Identify Fully Depreciated Assets
A. Identify fully depreciated assets carried in the property records.
Obtain assurance that such assets are still utilized. Consider
whether this may indicate that depreciation rates may not be
appropriate.

AUDIT PROGRAM FOR LIABILITIES

Audit Procedures W.P. DONE
REF. By Date
1. Obtain or Prepare a Comparative Summary
a. Obtain or prepare a comparative summary of accrued
liabilities and other payables balances. Trace to the general
ledger and previous audit’s working papers
2. Review the balances for reasonableness, expected or
unexpected fluctuations between periods and obvious
omissions
3. Obtain or prepare an analysis of the detail of accrued
liabilities and other payables account balances at period-end
4. Perform Detailed Tests of the Ending Account Balances
A. By examination of documentation, recomputation, or the
application of analytical procedures, test calculation of
balance at the end of period
5. Test Completeness of accrued Liabilities and Other payables
A. Ascertain the completeness of accrued liabilities and other
payables by considering knowledge of the entity’s
business and prior periods’ audit results, analyzing
relationship of account balances to other related accounts,
considering evidence form other tests, and considering
liabilities arising out of noncompliance with appropriate
regulations.
AUDIT PROGRAM FOR OWNER’S EQUITY
Audit Objectives Assertions
a. All the equity accounts on the balance sheet are appropriately Existence, Rights &
authorized and issued Obligation
b. To ensure that all changes to equity accounts including transfer Completeness
to reserve and dividends have been accounted for in the books
of the company on a timely basis
c. To ensure that all equity accounts are stated on the balance Valuation
sheet at the appropriate amounts
d. To ensure that all equity accounts have been preserved, Presentation and
classified and disclosed in the financial statements in Disclosure
accordance with the requirements of applicable financial
reporting framework

Audit Procedures W.P. DONE

REF. By Date
Analytical Procedures
1. Compare current year balances with prior year and ensure
reasonableness of changes during the year
2. Enquire into and obtain explanations for any unusual changes during
the year
Test of Details
1. Test of Equity Balances
A. Obtain a schedule of all equity accounts showing number of shares
authorized, issued, and outstanding at the beginning and end of the
year and all transactions affecting equity (e.g. dividends, retained
earnings) occurring during the year
 Test the summarization of the schedule
 Trace total to the general ledger
 Check the number of shares and amount issued, subscribed and
paid up capital
 Agree changes in authorized issued shares to minutes and
documents filed with the SEC
 Examine all changes in capital
 Trace to appropriate authorizations
 Agree number of shares and proceeds from issuance of new
shares to cash receipts and supporting records. Compute the
entries to par value of outstanding shares and paid in capital
 Agree number of share and value of redemption to cash
disbursements and supporting records
B. For shares issued as bonus shares by checking board resolution and
by checking member’s register to ensure that changes have been
made in number of shares of each member
  Test entries to paid-up capital other than from the issuance of
securities
 Test entries to retained earnings other than from net income,
dividends, and treasury shares
 Examine schedule of shares owned off record and beneficially
by major officers
 Evaluate results of tests.
2. Test Dividends and Retained Earnings
A. Determine the dividend payment and liability have been correctly
recorded
1. Review extracts of board minutes for dividends proposed and paid

2. Recompute calculation of dividends and trace total dividends to

earnings statement
3. Recomputed the liability for dividends
B. Agree changes in retained earnings to supporting documentation
and trace ending balance to general ledger and equity accounts
C. Evaluate results of the tests.
3. Prepare or obtain from the client an analysis of revaluation
surplus and perform the following:
A. Examine the supporting documents and authorization of revaluation

B. Test the mathematical accuracy of the amount.