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GRACE CORPORATION Schedule of Net Purchases December 31, 2011 Audit Objective: > To determine whether all transactions

relative to purchase exist at year-end in the ordinary course of business > To determine whether all transactions relative to purchases are recorded in proper accouting period. >To deterrmine whether purchase discounts are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence > Completeness >Measurment Audit Procedures: 1. Examine purchase invoices for several days both before and after the year-end. 2. Observe the taking of physical inventory and conduct test counts. 3. Examine purchase invoices for several days both before and after the year-end. 4. Trace invoices to the purchases and accountspayable records from the legers. 5. Recalculate the purchase discount from the accounts payables. Findings:

Purchases Less: Purchase Discount Net Purchases

Php 5,894,508.93 4,520.00 Php 5,889,988.93

Conclusion: No exceptions noted. Prepared by: Reviewed by: Initial Date Initial Date

MJFV

3/1/2013

se of business

GRACE CORPORATION Summary of Purchases December 31, 2011 Audit Objectives

> To determine whether all transactions relative to purchase exist at year-end in the ordinary course of business
> To determine that purchase discount arae recorded at the proper amount. Assertions Affected > Occurrence > Measurement Audit Procedures

1. Obtain list of inventory and reconcile to ledgers. 2. Observe the taking of physical inventory and conduct test counts. 3. Recalculate the purchase discount from the accounts payables.

Findings > The purchases account dont have beginning balances which reflects the purchases made from January to November thus the assumption is

Date

Purchased From:

Merchandise Inventory (VAT Excluded) Php 369,419.64 1,272,321.43 410,357.14 1,428,571.43 30,535.71 78,125.00 1,116,071.43 12,500.00 11,830.36 75,892.86 75,892.86 277,901.79 4,464.29 116,071.43 10,937.50 22,991.07 40,178.57 11,897.32 147,321.43 17,075.89 225,223.21 138,928.57 5,894,508.93

Dec.

1 2 3 6 7 9 10 12 15 16 18 20 21 22 23 24 26

27 28 29 30

Arboleda Co.,Inc. Genius Paper Products Sapphire Corporation Genius Paper Products Arboleda Co.,Inc. Arboleda Co.,Inc. Genius Paper Products Sapphire Corporation Genius Paper Products Arboleda Co.,Inc. Sapphire Corporation Genius Paper Products Arboleda Co.,Inc. Genius Paper Products Sapphire Corporation Arboleda Co.,Inc. Genius Paper Products Sapphire Corporation Genius Paper Products Arboleda Co.,Inc. Genius Paper Products Arboleda Co.,Inc. Total

Php

Footings checked.

Adjusting journal entry:


Purchases Retained Earnings Conclusion No exceptions noted. Php 5,894,508.93

Prepared by: Initials

MJFV

ordinary course of business

om January to November thus the assumption is that it was already closed to retained earnings.

Remarks

5,894,508.93

Prepared by: Date 3/1/2013

Reviewed by: Initials Date

GRACE CORPORATION Purchase Cut-Off December 31, 2011 Audit Objectives:

>To determine whether inventory included in the inventory list are accurate and inventory quantities includes both inventory on hand and in t >To determine whether all transactions regarding inventory are recorded properly. Assertions Affected: >Completeness Audit Procedures:

1. Examine purchases invoices for several days both before and after the year-end. 2. Trace invoices to the purchases and accounts payable records from the legers.
Findings: Quantity in Units 650 6000 850 500 1300 1500 1500 1500 1000 1600 1200 500 250 100 2500 3000 2000

Supplier

Invoice Number

Invoice Date

Item

Sapphire Corporation Genius Paper products Arboleda Company, Inc. Genius Paper products

1100 151 130 7729

Dec.27, 2011 Dec.28, 2011 Dec.29, 2011 Dec.29, 2011

Arboleda Company, Inc.

825

Dec.30, 2011

Sapphire Corporation

770

Jan.3, 2012

Typewriter Ribbon Thin Notebook Elmer's Glue Charcoal Pencil Bond paper- Whitey Bic Ballpen-Black Bic Ballpen-Blue Bic Ballpen-Red Yellow Pad Elmer's Glue Typewriter Ribbon Bond paper- Whitey Yellow Pad Bond paper- Whitey Bic Ballpen-Black Bic Ballpen-Black Bic Ballpen-Black

Included in inventory count on January 4, 2012, but should not be included in inventory as of December 31, 2011

Examined properly approved voucher with supporting invoice.

Conclusion:

No exceptions noted.

Prepared by: Initials

Date 3/1/2013

Initials

Reviewed by: Date

MJFV

ory quantities includes both inventory on hand and in transit.

Terms

Included in Inventory? Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Should be Included in Inventory? Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No No

Remarks

Cash 2/10, n/30 1/10, n/15 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 Cash Cash Cash Cash Cash Cash Cash Cash Cash

d not be included in inventory as of December 31, 2011.

h supporting invoice.