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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive:

A. Financial Statements and Related Disclosures
Primary Substantive Procedures
Procedure - Nature and Extent Documentation, findings or rationale if PSP not applicable Assertions WP/Ref. Sign off

P Other Substantive Procedures
Procedure - Nature and Extent Documentation and findings
We have ensured no during our audit work that no other transaction is related as related party

R

Assertions
(C, P&D)

WP/Ref.

Sign off

P
1 We have asked the client to provide details regarding any transactions which is under related party influence CHANGAI Z 10/6/201 2

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C. Cash including bank balances
Primary Substantive Procedures
Procedure - Nature and Extent
1 Obtain a complete list of bank accounts (debit and credit balances) as well as related loan and similar contracts. Obtain, at a minimum, bank confirmations for all major depository and disbursement accounts, and bank accounts closed during the year and other accounts as appropriate, based on the nature of the accounts (e.g., we may decide not to confirm some imprest bank accounts, pass-through bank accounts, or non-operating bank accounts with limited activity) to confirm the relationship with the bank including contingencies, liens, pledges, restrictions on the client's assets, guaranteed amounts etc. Document in the workpapers the rationale for the selection of bank accounts for confirmation.

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M, R&O)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012

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1

Sign off P R 1 .Nature and Extent TDR certificates physically verified Documentation and findings Assertions (C. as appropriate. including cash-in-transit accounts (e.e Karachi Tools. examination of subsequent cash receipts.Nature and Extent 1 2 Agree receivables subledger to the general ledger control account and investigate large and unusual reconciling items. Year end 6/30/2012 Prepared by: CH 9/29/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 Reviewed by: Executive: (C. E/O) WP/Ref. V/M) 3 4 (C. E/O) (V/M) Other Substantive Procedures Procedure . Sign off P 5 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 R 6 Balance confirmations sent to all banks (C. R&O) WP/Ref. to verify the proper reconciliation of bank statements and general ledger accounts.. E/O. Test appropriate valuation of cash and cash equivalents (including overdrafts) in foreign currencies. E/O) (E/O. in subledgers).g. Consider using the audit risk tables or EY MicroSTART to Documentation. Accounts Receivable trade Primary Substantive Procedures Procedure . or other alternative procedures. Verify the existence of accounts receivable trade through confirmation. Dies and Moulds Centre ES03 Complete Audit Program 2 Examine the client's bank reconciliation as of year-end. V/M) 7 TR 40 prepared (C) E. findings or rationale if PSP not applicable Assertions (C. V/M. Test cutoff of cash receipts and cash disbursements for transfers between different bank accounts at the balance sheet date.

Inquire about or review the list of credit balances and investigate large items. Evaluate the adequacy of the allowance for doubtful accounts. (C. Evaluate the adequacy of other adjustments to accounts receivables. discounts. Perform analytical procedures to identify peaks in sales volume in the last few days or weeks of the year and test cutoff by inspecting sales register. Where we perform substantive procedures at an interim date. Investigate unusual items. V/M) WP/Ref. shipping documents and other supporting documents before and after the year-end date. such as rebates. review the roll-forward of activity from the interim date to the balance sheet date in a manner responsive to our combined risk assessment and compare level of activity with prior periods. 3 If accounts are verified at an interim date. consider confirming (at the balance sheet date) significant new accounts and those accounts with significant increases or decreases between the interim date and the balance sheet date. E/O. including the appropriateness of the methodology used to calculate the allowance. we perform cutoff testing at that date also. E/O) Other Substantive Procedures Procedure . credit memos.e Karachi Tools. E/O) 5 (V/M) 6 7 8 (V/M) (V/M) (C. Sign off P 9 Balance confirmations circularised to selected customers CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 R 10 Subsequent clearence check more than 80% of the balances have been received after the year end (C) 1 . Dies and Moulds Centre ES03 Complete Audit Program determine the extent of the sample or document the rationale for the sample selection in the workpapers.Nature and Extent Documentation and findings Assertions (C. billings. V/M) Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive: 4 (C. Test appropriate valuation of accounts receivables in foreign currencies.

R&O) WP/Ref. V/M) 7 (V/M) 1 . (C. 4 5 6 If inventories are taken at an interim date.Nature and Extent 1 Observe the taking of physical inventories. V/M. consider observing these physical inventories as well. E/O) (V/M) CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 (C.e Karachi Tools. Test the allowances to reduce the valuation of inventory to net realizable value. Investigate large and unusual reconciling items. E/O. reserves for slow moving items. Sign off P CHANGAIZ 10/6/2012 R 3 (C. V/M) (C. Perform appropriate test counts and trace test counts to the inventory compilation. findings or rationale if PSP not applicable Assertions (C.g. e. Verify that client count instructions are followed and that inventories owned by others are separated. Review the reconciliation of the valued physical inventory compilation with the general ledger account balances and the perpetual inventory records. Dies and Moulds Centre ES03 Complete Audit Program Year end 6/30/2012 Prepared by: CH 9/29/2012 CHANGAI Z 10/6/201 2 Reviewed by: Executive: 11 Aging analysis and Aging test performed on selected customers only 380. obsolescence or lower of cost or market. 2 If significant. review the roll-forward documentation in a manner responsive to our combined risk assessment and investigate unusual items. Trace the cutoff information obtained during the physical observation to the accounting records of sales and purchases. confirm inventories held by others at the physical inventory date and trace confirmed quantities to the inventory compilation..000 of the amounts related to above 360 days (C) F. Inventories Primary Substantive Procedures Procedure . Test the valuation of inventory to verify that it is performed in accordance with the client's accounting policies or applicable financial reporting framework. R&O) CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 Documentation. E/O.

plant and equipment Primary Substantive Procedures Procedure . V/M) WP/Ref.Nature and Extent Documentation and findings Assertions (assertions) WP/Ref. findings or rationale if PSP not applicable Assertions (C. Sign off P 4 R K. Test the carrying amounts of long-term financial assets. Sign off P 8 R J. Sign off P CHANGAIZ R 1 .Nature and Extent Documentation and findings Assertions (assertions) WP/Ref. Long-term receivables Primary Substantive Procedures Procedure . plant and equipment. E/O. Sign off P CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 R 2 3 (V/M) (V/M) Other Substantive Procedures Procedure . Dies and Moulds Centre ES03 Complete Audit Program Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive: Other Substantive Procedures Procedure . Documentation.e Karachi Tools. V/M) WP/Ref. Property.Nature and Extent 1 Verify the existence and ownership of long-term receivables through confirmation or examination of supporting documentation. E/O. findings or rationale if PSP not applicable Assertions (C. Use information obtained during the audit in determining whether management has identified appropriate indicators of impairment and verify that appropriate adjustments are made in accordance with the applicable financial reporting framework. including Documentation.Nature and Extent 1 Obtain a schedule of property.

V/M) WP/Ref. depletion and/or amortization (PPE subledger) and agree balances to the respective general ledger accounts. E/O. leases and other data that support these additions and disposals. borrowing costs and other acceptable costs) and disposals during the year.e Karachi Tools. Review and examine support for rentals under operating leases and for significant charges to repairs. Review reasonableness of depreciation.Nature and Extent Documentation and findings Assertions (C. where applicable. Dies and Moulds Centre ES03 Complete Audit Program capitalized leases. Sign off P 6 Vouching done on addition of Fixed assets during the year CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 R 7 Physical existence of additions of Fixed assets seen all assets purchased are existing in the company premises (E/O) 8 Predictive testing work performed on depreciation the difference has been reconciled and os below our SAD (C) 9 (assertions) 1 . and related additions. capital expenditure authorizations. V/M. plant and equipment. E/O) CHANGAIZ 10/6/2012 4 (V/M) CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 5 (V/M) Other Substantive Procedures Procedure . (C. reclassifications and depreciation. 2 For significant additions (including capitalized labor. maintenance and other expense accounts to determine if they should be capitalized as property. Also. R&O) Year end 6/30/2012 Prepared by: CH 9/29/2012 10/6/2012 Reviewed by: Executive: CHANGAIZ 10/6/2012 3 (C. depletion and amortization charge by reference to the client's accounting policy or applicable financial reporting framework and expectation for current year. examine invoices. review the ratio of labor capitalized versus expensed and compare to prior year and expectations. disposals. Use information obtained during the audit in determining whether management has identified appropriate indicators of impairment.

contracts. E/O) WP/Ref. trade Primary Substantive Procedures Procedure .Nature and Extent 1 Agree the accounts payable subledger to the general ledger control account and investigate large and unusual reconciling items. including Goodwill Primary Substantive Procedures Procedure . including goodwill. Sign off P CHANGAIZ 10/6/2012 R 1 . (V/M) CHANGAIZ 10/6/2012 Documentation. E/O. in accordance with the entity's accounting policies or applicable financial reporting framework to reflect impairment of the carrying amounts of intangible assets or goodwill. Sign off P CHANGAIZ 10/6/2012 R Other Substantive Procedures Procedure . Accounts payable. and test the bases on which additions. and other data that support ownership of intangibles capitalized and disposed of during the year. Intangibles.Nature and Extent Documentation and findings Difference is belowe our SAD Assertions (assertions) WP/Ref. Documentation.e Karachi Tools. findings or rationale if PSP not applicable Assertions (C.Nature and Extent 1 Obtain a schedule of intangibles. amortization and disposals are recorded. Dies and Moulds Centre ES03 Complete Audit Program Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive: L. Examine invoices. agreements. Sign off P 3 Predictive testing work performed on depreciation CHANGAI Z 10/6/201 2 R N. V/M) WP/Ref. authorizations. findings or rationale if PSP not applicable Assertions (C. 2 Determine whether write downs are required.

Perform cutoff tests for goods and services received as well as for supplier credit memos to verify that transactions are completely recorded in the correct period.Nature and Extent Documentation and findings WP/Ref. Equity Other Substantive Procedures Procedure . Test appropriate valuation of accounts payable in foreign currencies. V/M) 3 (C. Form 27. Sign off P 1 documents acquired: Form 29. Sign off P 6 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 R 7 Test of unrecorded liabilities performed no such items are found (C) 8 Aging analysis prepared (assertions) T.g. Year end 6/30/2012 Prepared by: CH 9/29/2012 CHANGAIZ 10/6/2012 Reviewed by: Executive: (C. Perform a search for unrecorded liabilities at the year-end date by selecting subsequent disbursements and unmatched invoices and receiving reports. memorandom and articles of association CHANGAI Z 10/6/201 R 1 . V/M) (V/M) Other Substantive Procedures Procedure . e. E/O) CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 4 5 (C. Dies and Moulds Centre ES03 Complete Audit Program 2 Inquire about or perform a review of the accounts payable subledger for unusual items.. Third schedule. V/M) WP/Ref.e Karachi Tools.Nature and Extent subsequent clearence checked Documentation and findings about 83% of the payments have been paid off to the concerned parties Assertions (C. significant debit balances in the accounts payable subledger or other unexpected amounts to verify proper classification and valuation. E/O. Form 28.

by means of computer-assisted audit techniques (CAAT).Nature and Extent Documentation and findings Assertions WP/Ref. by product line. -inquiry of sales and marketing personnel for any unusual transactions or similar items. Revenue/Sales Primary Substantive Procedures Procedure . to identify potential unusual transactions or events. 3 1) Evaluate the client’s ability to reasonably estimate future product returns to support revenue recognition at the time of delivery. 3) Investigate significant or unusual changes from the prior period based on actual sales returns in the current period to determine whether the current year accrual for future product returns may require adjustment. (E/O.Nature and Extent 1 Perform an overall analytical review for all significant income statement accounts and investigate any significant changes or lack of expected changes.and client's policies for handling returns. -review of the terms of sales agreements . Sign off P CHANGAIZ 10/6/2012 R 2 (E/O.e Karachi Tools. V/M) WP/Ref.g. Include those accounts not already covered through balance sheet account testing.g. by geographical area. Perform revenue recognition procedures (if not already covered by tests of accounts receivables. findings or rationale if PSP not applicable Assertions (C. by month. V/M) CHANGAIZ 10/6/2012 Documentation. 2) Perform procedures to evaluate the accrual for future product returns.including sales incentives.. e. for example. Sign off 1 . by segment). V/M) CHANGAIZ 10/6/2012 Other Substantive Procedures Procedure . Dies and Moulds Centre ES03 Complete Audit Program Year end 6/30/2012 Prepared by: CH 9/29/2012 2 Reviewed by: Executive: UA. trade and intercompany). -analytical procedures using disaggregated data (e.

2 Review the appropriateness of large and unusual expenses. depreciation rates as per their useful life. V/M) CHANGAIZ 10/6/2012 Documentation. E/O. V/M.Nature and Extent Documentation and findings Assertions (C. salaries for Labor cost.Nature and Extent 1 Obtain detail of cost of sales accounts in comparison with the prior period.e Karachi Tools. V/M) 6 Sales cross compared with cost sheets and their related job orders to ensure completness of Revenue booked (C. Sign off P CHANGAIZ 10/6/2012 R Other Substantive Procedures Procedure . or the lack of expected changes. if not already covered through analytical review of sales accounts including gross margin analysis. (E/O. CH CH R 1 . Investigate and explain major changes. V/M. Sign off P 3 4 Vouching done of each account head above TE and evidences obtained in hard copy Basis of expenses in direct cost examined and verified its appropriatness by taken materials issue notes. V/M) VA. Dies and Moulds Centre ES03 Complete Audit Program Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive: P 4 Training courses verified with attendence sheets and their relative fee schedules (C. V/M) WP/Ref. findings or rationale if PSP not applicable Assertions (C. E/O. R&O) (C. E/O. Cost of Sales Primary Substantive Procedures Procedure . R&O) WP/Ref. large or unusual transactions. V/M) CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 R 5 Vouching of bank receipts done to ensure completeness of revenue from each customer (C.

management compensation. in the areas of professional services fees. V/M. Dies and Moulds Centre ES03 Complete Audit Program Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive: Utilities as per hourly usage VD. E/O. Sign off P 4 Vouching done of each account head above TE and evidences obtained in hard copy CH R 1 . 2 For significant transactions identified in the previous step. E/O. Compare with previous period and investigate any unusual transactions.e Karachi Tools. R&O) WP/Ref. have been covered in the lawyers? confirmation work. Verify through a review of lawyers? fees that all lawyers and in-house legal counsels. political contributions and donations. findings or rationale if PSP not applicable Assertions (C. Sign off P CH R 3 (C) CH Other Substantive Procedures Procedure . who handle significant litigation or other claims.g.Nature and Extent 1 Understand contents of administrative and other expense accounts. review underlying documentation for reasonableness and business purpose. Administrative and Other Expenses Primary Substantive Procedures Procedure . and miscellaneous. leases and rents.. e.Nature and Extent Documentation and findings Assertions (C. V/M) WP/Ref. (V/M) CH Documentation. repairs and maintenance.

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