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CLIENT: PERIOD: SUBJECT: Est. Hrs.

Phase/ Level

AUDIT PROGRAM ___________________________________________________________


___________________________________________________________ STATEMENT OF CHANGES IN EQUITY Procedures AUDIT OBJECTIVES To determine whether: A. Capital and other equity accounts represent all amounts paid in for preferred or ordinary share capital issued, amounts paid in for preferred or ordinary share capital in excess of par or stated value, and undistributed earnings The amounts in the capital and other equity accounts are in compliance with the requirements of the Memorandum and Articles of Association or similar grant of legal authority and with the applicable statutes of the state of incorporation and are properly recorded. All transactions within the capital and other equity accounts during the audit period are properly authorized and recorded. Capital and other equity amounts are properly described and classified in the financial statements and adequate disclosures with respect to these amounts have been made. Any direct adjustments to the equity are in accordance with the provision of relevant IASs or other professional pronouncements / statutes and are adequately calculated, recorded and described. W/P Ref. By Comments/Explanations

B.

C. D.

E.

SUBSTANTIVE PROCEDURES 1. General 1.1 Obtain an analysis of equity accounts for the period. Obtain and test significant entries and tie balances to the lead schedule. Trace dividend declaration, stock purchases, etc., to minutes, as applicable. Obtain Board resolution for any movement in reserves. Ensure whether any statutory requirements for creating any specific / legal reserve have been fulfilled. Ensure dividend has been distributed only out of revenue reserves. Match closing balance with general ledger. Ensure that the categorization of capital and revenue reserves is in accordance with generally accepted accounting principles and the requirement of the Fourth and Fifth Schedules to the Companies Ordinance, 1984.
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1.2 1.3 1.4 1.5 1.6

CLIENT: PERIOD: SUBJECT: Est. Hrs.


Phase/ Level

AUDIT PROGRAM ___________________________________________________________


___________________________________________________________ STATEMENT OF CHANGES IN EQUITY Procedures 1.7 Obtain or prepare a statement reconciling the reserves at the balance sheet date with those existing at the date of the previous balance sheet, distinguishing clearly between capital and revenue reserves. W/P Ref. By Comments/Explanations

2. Direct Adjustments to Equity 2.1 2.2 2.3 Check recording and working of any direct adjustment to equity. Ensure authorization of all adjustments in equity. Consider obtaining Boards approvals for the effects. Check that any adjustment to equity is either in accordance with the provisions of the Companies Ordinance, 1984 or the relevant IAS or circulars of SECP.

Other tests as deemed necessary

Management Letter Prepare management letter points including: Internal control weaknesses; Business improvement opportunities; Legal non-compliance; Accounting system deficiencies; and Errors and irregularities not material at the financial statements level. Disclosure Ensure appropriate disclosure have been made in accordance with the reporting framework and fill relevant portions of Financial Statement Disclosure Checklist (FSDCL). Supervision, Review and Conclusion 1. 2. 3. 4. Perform Senior review and supervision. Resolve Senior review points. Resolve Partner and Manager review points. Conclude response to the audit objectives.

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CLIENT: PERIOD: SUBJECT: Est. Hrs.


Phase/ Level

AUDIT PROGRAM ___________________________________________________________


___________________________________________________________ STATEMENT OF CHANGES IN EQUITY Procedures W/P Ref. By Comments/Explanations

Audit conclusion Based on the substantive test procedures, I/we performed as outlined above, it is my/our opinion that the audit objectives set forth at the beginning of this audit program have been achieved, except as follows: ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________

Date:____________

______________ Signature

___________ Job Incharge

________ Manager

_______ Partner

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