AUDIT PROGRAM FOR DEPOSIT LIABILITIES

AUDIT OBJECTIVES

To determine whether:

1. To determine the bank’s liability for the different types of deposits.

2. Deposit valuation are properly valued based on conformity with prescribed accounting
principles and BSP rules and regulations.

3. Deposit liabilities are properly classified, described, and disclosed in the financial
statements, including notes, in conformity with prescribed accounting principles, BSP rules
and regulations and Anti-Money Laundering Council rules and regulations.

WP Done
Audit Procedures
Ref By Date
1. Obtain/secure management representation/certification of
deposits general ledger balance and subsidiary ledger balances
by sub-control classification.
2. Test check computations of interest payments to deposits.
3. Examine depositors’ ledgers with unusually large deposits and
withdrawals, but with resulting small balances.
4. Examine randomly one day deposit slips for possible
withholding of funds. The date of the deposit slip should be the
posting date to the ledger. Investigate any exception.
5. For dormant accounts (accounts with no movements for one
year or more):
a. Review separate block control ledger for inactive or dormant
accounts.
b. Test-check if withdrawals therefrom are properly authorized
by the respective officer.
c. Determine whether all dormant accounts are kept under dual
control.
6. Determine compliance with provisions of law, BSP rules and
regulations and Anti Money Laundering Council rules and
regulations
 7. Update notes to financial statements on deposit liabilities based
on Philippine Financial Reporting Standards, BSP rules and
regulations and Anti-Money Laundering rules and regulations.
8. List down management letter points regarding internal control
and other business matters.
9. Clear all review notes.

Audit Program for Long-term Deposits

Assertions Audit Objectives

Existence, Rights & To ensure that long term deposits represent valid claims by
Obligations third parties.
To ensure that all deposits received from customers or other
third parties have been accounted for in the books of the
Completeness company on a timely basis.
To ensure that long term deposits are recorded at the correct
Valuation amount.
To ensure that long term deposits have been presented,
classified and disclosed in the financial statements in
accordance with the requirements of applicable financial
Presentation & Disclosure reporting framework

Test of Control: Long-term Deposits

WP Done
Audit Procedures
Ref By Date
Analytical Procedures
1. Compare balances to prior periods and budgets
seeking explanations for unusual items and
significant variances.
2. Review movement during the year in long term
deposits and ensure reasonableness of changes
during the year.
Test of Details Test of Details
1. TEST LONG TERM DEPOSIT BALANCES
a. Ascertain the nature of deposits by inquiry or by
reviewing prior year’s working papers
 b. Examine the supporting documents of deposits e. g.
contracts with customers etc.
c. Circularize confirmations to selected parties. Match
replies with the amounts shown in general ledger.
2. TEST PRESENTATION
A. Determine that disclosures have been made in
accordance the relevant accounting
pronouncements.