Targeted Testing Engagement Caribbean Metals Limited

Test Objective Audit Unit

Step 5. Perform Testing and

Step 1. Account Information Step 3. Define Misstatement Evaluate Results (Reference work
performed / summarize results)

Account Name (FSLI) Trade Payables A difference between an amount on the AP listing and the See results template for details
amount per the confiirmation and/orsupplier invoice which
cannot be explained or reconciled.
Coverage Date 3/31/2013

Currency XCD

Performance Materiality 25,000

No. of
Step 2. Define the Population Step 4. Targeted Testing Plan Amount % of Tested
Items

Total Population Amount 421,679 ODA selected all balances above amounts above $2,500 Misstatements - 0 0.0%

Aged AP Listing
Report Name Step 6. Consider Remaining Balance After Targeted
Testing

Individual customer balances

Desired Level of Evidence
Testing Unit
No. of % of
Selection Amount 126,882 5.1 x Performance Materiality
Items Population
The report was footed and the High Value 17 294,797 69.9% Remaining balance after targeted testing > performance materiality.
balance was traced to the GL Document add'l testing below or the rationale for no further testing (i.e,
evidence from controls testing, substantive analytics, or other tests of
Risk 0.0% details).

How did we confirm population is Unpredictable

0.0%
appropriate and complete? Procedures
Total Tested 17 294,797 69.9%

Untested 126,882 30.1%

Tests of Details Template Menu
Select the appropriate Test of Details template(s) to add to the workbook.

Add Non-Statistical Add Supplemental Non- Add Two Step Revenue Add Accept-Reject Test
Add Targeted Test
Sampling Test Statistical Sampling Test Testing
Tests of Details Template Menu
Select the appropriate Test of Details template(s) to add to the workbook.

Add Non-Statistical Add Supplemental Non- Add Two Step Revenue Add Accept-Reject Test
Add Targeted Test
Sampling Test Statistical Sampling Test Testing
 Targeted Testing Engagement

Test Objective Audit Unit

Step 5. Perform Testing and

Step 1. Account Information Step 3. Define Misstatement Evaluate Results (Reference work
performed / summarize results)

Account Name (FSLI)

Coverage Date

Currency

Performance Materiality

No. of
Step 2. Define the Population Step 4. Targeted Testing Plan Amount % of Tested
Items

Total Population Amount Misstatements

Report Name Step 6. Consider Remaining Balance After Targeted

Testing

Desired Level of Evidence

Testing Unit
No. of % of
Selection Amount
Items Population
High Value

Risk
How did we confirm population is Unpredictable
appropriate and complete? Procedures
Total Tested

Untested
Non-Statistical Sampling Engagement ###

Test Objective Audit Unit

Step 6. Testing (Reference work

Step 1. Account Information Step 3. Define Misstatement
performed / summarize results)

Account Name (FSLI) Sampled Total

Coverage Date Net Differences
Currency Notes (Optional)
Total Population Amount
Number of Items
Performance Materiality

Step 2: Define the Population and

Step 4. Determine Sample Size Step 7. Projected Misstatement
Sampling Unit

Projection Method
Define the Sample Population 0
Population to be Performance Materiality 0 Projected Misstmt Amount
Sample Tested
Tolerable Misstatement equal
Yes No
to Performance Materiality?
Appropriateness and Step 8. Evaluation of Results
% Amount
Completeness
Max. Tolerable Misstmt or
Total Sample Misstatement*
Sampling Unit Estimated Misstmt or *Note: Total Sample Misstmt Includes both Known & Projected Errors
Sample Misstatement Rate
Targeted or Immaterial Items? Tolerable - Est. Misstmt 0.0% or 0
No. Items Amount
Targeted Testing Desired Level of Evidence
Immaterial Items Consider Targeted Testing Results
Calculated Sample Size Targeted Testing Total
Determined Sample Size Targeted Testing Differences (Amount)
Define Targeted and Immaterial Items Targeted Testing Misstmt Rate

Targeted Testing
Step 5. Sample Selection

Immaterial Items Sample Selection Method

CLIENT:
YEAR END:
PREPARED BY:
REVIEWED BY:

Confirmation of accounts payable

DOCUMENTATION OF SAMPLE DOCUMENTATION OF TESTING
Sample Supplier Supplier Confirmation response is received Alternative procedures when no response is received
number name amount
per detailed listing (balance,
invoice) b) c) d) e) f) g)
per detailed confirmation Amount per Difference between Supporting documentation Supporting Supporting Difference between
listing response confirmation amount per examined documentation documentation amount selected for Remarks
to be confirmed reference # received confirmation and (supplier statement, reference number amount testing and amount per
amount per detailed subsequent payment, supporting
a) listing invoice, etc) documentation

a) - c) a) - g)

1 0.00 0
2 0.00 0
3 0.00 0
4 0.00 0
5 0.00 0
6 0.00 0
7 0.00 0
8 0.00 0
9 0.00 0
10 0.00 0
11 0.00 0
12 0.00 0
13 0.00 0
14 0.00 0
15 0.00 0
16 0.00 0
17 0.00 0
18 0.00 0
19 0.00 0
20 0.00 0
21 0.00 0
22 0.00 0
23 0.00 0
24 0.00 0
25 0.00 0
26 0.00 0
27 0.00 0
28 0.00 0
29 0.00 0
30 0.00 0
31 0.00 0
32 0.00 0
33 0.00 0
34 0.00 0
0.00 0
0.00 0
Total(s) - - - 0 - 0

CONCLUSION:
Supplemental Non-Statistical Sampling Engagement ###

Test Objective Audit Unit

Pre-Conditions Before Using this Supplemental Non-Statistical Sampling (All the Pre-Conditions Below Need To Be Met)

Based on cumulative audit experience and results of other current year procedures we do not anticipate misstatements to be identified (i.e., the Estimated Misstatement is zero).
Other substantive procedures related to the relevant FSLI assertion are performed or are planned to be performed in order to provide the desired substantive evidence combined with this non-
statistical sample at the Supplemental level of assurance.
Note: The Supplemental level of assurance provides limited confidence (and therefore limited evidence) and will not by itself provide sufficient substantive evidence at the FSLI assertion level.
Therefore, non-statistical sampling at the Supplemental assurance level would only be used when we performed sufficient other substantive procedures related to the relevant FSLI
assertion.
In other words, the limited substantive evidence provided by a non-statistical sample at the Supplemental level of assurance needs to be combined with other substantive procedures to
provide the desired substantive evidence at the FSLI assertion level.

Step 6. Testing (Reference work

Step 1. Account Information Step 3. Define Misstatement
performed / summarize results)

Account Name (FSLI) Sampled Total

Coverage Date Net Differences
Currency Notes (Optional)
Total Population Amount
Number of Items
Performance Materiality

Step 2: Define the Population and

Step 4. Determine Sample Size Step 7. Projected Misstatement
Sampling Unit

Projection Method
Define the Sample Population 0
Population to be Performance Materiality 0 Projected Misstmt Amount
Sample Tested
Tolerable Misstatement equal
to Performance Materiality?
Yes No
% Amount Step 8. Evaluation of Results

Appropriateness and Max. Tolerable Misstmt or

Completeness Total Sample Misstatement*
Estimated Misstmt or *Note: Total Sample Misstmt Includes both Known & Projected Errors
Sample Misstatement Rate
Tolerable - Est. Misstmt 0.0% or 0
Sampling Unit
Desired Level of Evidence
Targeted or Immaterial Items?
No. Items Amount Calculated Sample Size
Targeted Testing Determined Sample Size
Immaterial Items Consider Targeted Testing Results
Targeted Testing Total
Targeted Testing Differences (Amount)
Define Targeted and Immaterial Items Targeted Testing Misstmt Rate

Targeted Testing
Step 5. Sample Selection

Immaterial Items Sample Selection Method

Two Step Revenue Testing Engagement ###

Test Objective Audit Unit

Pre-Conditions Before Using this Two Step Revenue Testing (All the Pre-Conditions Below Need To Be Met)

The inherent risk of material misstatement due to error related to the elements of revenue recognition covered by the planned transaction testing is normal and no heightened fraud risks exist
related to revenue recognition overall (i.e., no specific fraud risks beyond the presumed risk of fraud in revenue recognition);

Some level of targeted testing is performed or planned to be performed on the elements of revenue covered by the planned transaction testing;

The level of evidence related to accounts receivable, as of the end of the period covered by our revenue testing, from confirmation (or liquidation) procedures is or plans to be moderate or high;
and

Other procedures are performed or are planned to be performed in response to the presumed risk of fraud in revenue recognition as appropriate (e.g., testing of journal entries, unpredictable audit
procedures, corroboration of unusual account combinations associated with general ledger revenue account postings) targeted at the existence /occurrence and accuracy / valuation of revenue.

Based on cumulative audit experience and results of other current year procedures we do not anticipate revenue misstatements to be identified (i.e., the Estimated Misstatement is zero).

Were misstatements on the assertions relevant to this testing identified in the targeted testing, accounts receivable testing or other procedures performed? No Yes

Testing (Reference work

Account Information Define Misstatement
performed / summarize results)

Account Name (FSLI) Sampled Total

Coverage Date Net Differences
Currency Notes (Optional)
Total Population Amount
Number of Items
Performance Materiality

PIE / non-PIE PIE non-PIE

Define the Population and

Determine Sample Size Projected Misstatement
Sampling Unit

Projection Method
Define the Sample Population 0
Population to be Performance Materiality 0 Projected Misstmt Amount
Sample Tested
Tolerable Misstatement equal
to Performance Materiality? Yes No
Appropriateness and Evaluation of Results
% Amount
Completeness
Max. Tolerable Misstmt or
Total Sample Misstatement*
Sampling Unit Estimated Misstmt or *Note: Total Sample Misstmt Includes both Known & Projected Errors
Sample Misstatement Rate
Targeted or Immaterial Items? Tolerable - Est. Misstmt 0.0% or 0
No. Items Amount
Targeted Testing Desired Level of Evidence
Immaterial Items
Calculated Sample Size
Determined Sample Size
Define Targeted and Immaterial Items

Targeted Testing
Sample Selection

Immaterial Items Sample Selection Method

Accept-Reject Engagement

Test Objective Audit Unit

Step 5. Perform Testing and

Step 3. Define Exceptions and Evaluate Results (Reference work
Step 1. Account Information
Inconsequential Differences performed / summarize results)
performed / summarize results)

Account Name (FSLI)

Coverage Date Number of Exceptions

Identified

Step 4. Determine Number of Items to More Than Tolerable

Step 2. Define the Population Exceptions?
Test and Select Items

Desired Level of Evidence

Report Name

Tolerable Exceptions
If population >= 200, can
Number of Items in
and will testing be
Population
Calculated Number of Items to expanded?
Test
Testing Unit
Enter Number of Items Actually
Tested

How did we confirm

population is appropriate Selection Method
and complete?
 Step 4: Determine
1.10 Sample Size ###
1.80 ### ###
#REF!
Step 6 & 7: Testing and Project Misstmt
Sample Population 5,000 Total Tested 50
Performance Materiality 500 Net Differences 2

Tolerable Misstatement equal Projection Method: Ratio Estimation

Yes
to Performance Materiality?
1 0 Projected Misstmt Amount: 198
€747,634

Max. Tolerable Misstmt 0.1 or 500

Step 8: Evaluation of Results
Estimated Misstmt (%) 0.03 or 150 Total Sample Misstatement* 200
*(Equals Known: $2 + Projected: $198)
Tolerable - Est. Mistmt (%) 7.0% or 350 Sample Misstatement Rate 1.2%

Required Level of Evidence: Low

Calculated Sample Size 16

Determined Sample Size 16
CLIENT:
YEAR END:
PREPARED BY:
REVIEWED BY:

ACCOUNTS PAYABLE - Alternative Procedures

Customer Balance per listing Invoices Examined Subsequent Payment

(A)
Invoice Date EC Amount Date Amount Cheque/Dra Difference
Number (B) ft #
(C) (A) - (B) - ( C)

$ - $ -
$ - $ -

$ - $ -
$ - $ -
$ - $ -
$ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -

$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -