AUDIT PROGRAM

(04/05)
Patrimonio

Client Period-end W/P reference

Cemex Colombia S.A. y Filiales Diciembre 31, 2005 M

Purpose
The purpose of this working paper is to document the audit procedures planned and performed in
respect of significant accounts and disclosures covered by this Audit Program. It documents:

n audit objectives relevant to each of the significant accounts and disclosures and the planned
audit approach

n our understanding of the entity’s accounting and reporting activities relevant to the classes of
transactions, account balances (estimates or other) and disclosures

n our understanding and evaluation of the selected controls for audit objectives associated with
a significant risk and those objectives when we choose to rely on controls, together with the
assertions that they address; this includes evaluating the design and implementation of
selected controls and, where applicable, testing their operating effectiveness. Where
applicable, we document a description of the nature, timing and extent of our tests of
operating effectiveness and the results of the procedures performed

n our assessment of the inherent risk and control risk (where we evaluate the underlying
controls) for each audit objective, resulting in our assessed risk of significant misstatement

n planned substantive audit procedures for each audit objective, and

n our conclusions reached with respect to each audit objective.

Applicability
Completion of this working paper is required for all audits, unless the engagement is an
Integrated Audit (pursuant to PCAOB Standard No 2) or the engagement meets the small
engagement (SE) criteria. In these instances, the appropriate Integrated Audit or SE working
paper is completed.

Prepared by: Alexandra Rojas Henao

Date: Octubre 18, 2005
Reviewed by: Álvaro José Camacho
Date:
Gerardo Buendía
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General guide to completion

A complete Audit Program consists of:

Section I – Lead Schedule

Section II - Audit objectives and conclusions

For each audit objective, either Section III – Audit objectives where we evaluate the underlying
controls

for each audit objective where:

n the audit objective is associated with a significant risk (including a risk of fraud), in which
case, at a minimum, we evaluate the design and implementation of selected controls, or
n we choose to rely on controls when this is the most effective audit approach.

In Section III we document:

 a description of the client’s accounting activities and related controls, and for classes of
transactions, significant risk points and a walkthrough of the activities and controls
 the evaluation of the design and implementation of the selected controls and, where
appropriate, the test(s) of their operating effectiveness, and
 the assessment of the risk of significant misstatement and our substantive procedures.

or Section IV – Audit objectives where we undertake a substantive approach

for each audit objective where:

n we have an audit objective which is NOT associated with a significant risk (including a risk
of fraud), and
n it is possible, practical, and efficient to reduce audit risk to an acceptable level only through
performing substantive procedures.

In Section IV we document:

 a description of the client’s accounting activities; and

 the assessment of the risk of significant misstatement and our substantive procedures.

For each audit objective, (in both sections III and IV) we determine whether:

n we intend to audit the related classes of transactions, in which case we complete the “Class of
transaction” section
n the audit objective relates to an account balance that is an estimate or to a disclosure, in
which case we complete the “Estimate or disclosure” section, or

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n the audit objective relates to an account balance that is not an estimate (and we do not intend
to audit the underlying classes of transactions), in which case we complete the “Other
account balances” section.

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Working paper content

I. Lead schedule...............................................................................................................5
II. Audit objectives and conclusions............................................................................6
IV Audit objectives where we undertake a substantive approach...........................8
A.1 Description of accounting activities.......................................................................8
Other account balances......................................................................................................8
A.2 Substantive audit procedures [KAM 5479]...........................................................9

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I. Lead schedule
Document in the table below all significant accounts and disclosures relevant for this Audit Program.

Current period Prior period

000s 000s

Significant accounts – balance sheet

Patrimonio 1.342.286.106 1.475.722.545

Significant accounts – income statement

Corrección monetaria 48.588.480 62.587.007

Disclosures

Composición del capital social, reserva legal, dividendos decretados, retención en la fuente sobre
dividendos, revalorización del patrimonio, utilidad neta por acción.

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II. Audit objectives and conclusions
For each audit objective, we document:

n the significant accounts or disclosures and the relevant financial statement assertion(s)
n the inherent risk and whether we have identified a risk of fraud
n whether we intend to evaluate the underlying controls or take a substantive approach and whether:
─ we intend to audit the related classes of transactions
─ the audit objective relates to an account balance that is derived from an estimate, or to a disclosure, or
─ the audit objective relates to an account balance that is not derived from an estimate (and we do not intend to audit the underlying classes
of transactions), and
n the conclusions reached (including control deficiencies or audit differences identified) after we have completed the test work
outlined in this Audit Program.

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proceduresSubstantive analytical
assessment - errorInherent risk

Objective achieved
Audit objective

Risk of fraud
General audit approach

Control based or
Substantive:
Class of transaction/
Estimate or disclosure/

Tests of detail
Other account balance
Significant Control deficiencies or audit
account/ differences identified, if any
disclosure C E A V O P (Optional)

1 Patrimonio X X X X L N N Y

2 Corrección X X X X L N N Y
monetaria

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IV Audit objectives where we undertake a substantive approach
A.1 Description of accounting activities
Our documentation in this section may be in a narrative form using bullet points or paragraphs, or
may be documented in a flow chart. The form and content of this documentation is influenced by the
nature, size and complexity of the entity and its environment and the availability of information from
the entity. The Audit Program may be cross-referenced to suitable documentation of the accounting
activities provided by the entity.

For all other documentation considerations, see the guidance in the individual sections below.

Other account balances

Our documentation of accounting activities for those significant account balances that do not result
from estimates, and where we are not testing the related classes of transactions, covers the activities
over ensuring that the period end account balance is not significantly misstated.

A Obtener evidencia de auditoría suficiente sobre la integridad, existencia y exactitud del

patrimonio y del ajuste por inflación.

Activities over ensuring that the period end balance is not materially misstated
Contabilidad debe registrar los movimientos del capital social decretado en las actas de la Asamblea
General o Junta de Socios, según corresponda, en el mes correspondiente.

Durante el primer período del año fiscal, Contabilidad debe reclasificar la utilidad del ejercicio a la
utilidad de ejercicios anteriores u otras disposiciones de la Asamblea o Junta.

Mensualmente, Contabilidad debe. corer los ajustes integrales por inflación.

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A.2 Substantive audit procedures [KAM 5479]

A Obtener evidencia de auditoría suficiente sobre la integridad, existencia y exactitud del patrimonio y del ajuste por inflación.

We assess the inherent risk for the audit objective and provide a rationale for the related assessment. Where we do not evaluate the design and
implementation of controls for a particular audit objective, the assessment of RoSM is based on the assessment of inherent risk. [KAM 4900]

Effective entity level controls support the risk of significant misstatement assessments. However, deficiencies in entity level controls could
undermine the effectiveness of some of the control activities and therefore may require us to amend upwards our assessment of the risk of
significant misstatement for some or all audit objectives.

Rationale for RoSM assessment RoSM

Inherent risk [Low] [Low]

We document substantive audit procedures, which include substantive analytical procedures and/or tests of details. We consider the sufficiency
and appropriateness of the substantive audit evidence that is planned to be obtained from substantive analytical procedures before determining the
extent of tests of details.

If we decide to test journal entries, we consider whether to include tests of journal entries and other adjustments in the tests of details in this
section of the Audit Program. Journal entries relevant to regular processing of significant accounts are normally documented and tested as part of
the audit objectives relating to the relevant significant accounts in the relevant Audit Program. “Topside” or non-routing journal entries processed
during the preparation of the financial statements would normally be considered in the Financial Reporting Audit Program.

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Significant
account / Done by and W/P
Nature and extent of audit procedures [KAM 5116] disclosure C E A V O P date Ref

Substantive analytical procedures [KAM 5300]

N/A

Tests of details [KAM 5400]

De acuerdo con las actas de Asamblea General o Junta de Socios de cada Patrimonio X X X X
una de las Compañías del Grupo en las cuales aprobaron los proyectos de
distribución de excedentes o absorción de pérdidas, según corresponda,
(sobre los resultados del año 2004), verifique el movimiento patrimonial al
30 de septiembre y 31 de diciembre de 2005.

Al 30 de septiembre y 31 de diciembre de 2005, realice cálculo global del Patrimonio, X X X X

ajuste por inflación del patrimonio causado durante el período y verifique su corrección
adecuado registro en contabilidad. monetaria
[Rebuttable procedures, if applicable] [KAM 5431]

N/A

Update and amend, if appropriate, the assessment of RoSM and the

rationale, and re-evaluate the planned audit procedures.

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