Client :

Accounting period :

BANK BORROWINGS

AUDIT OBJECTIVES

To gather appropriate audit evidence sufficient enough to form an opinion whether the balances as stated in
the balance sheet:-

1. All bank borrowings are properly authorised.

2. Interest are properly accrued.

3. Are properly described, classified, disclosed and shown on a basis consistent with that of the previous year.

AUDIT PROCEDURES DONE

BY

1. Obtain an schedule of bank borrowings classified into secured, unsecured,

current and non-current:-

(a) Cast and trace totals to general ledger and agree to financial statements.

(b) Trace beginning balances of general ledger to prior year's working papers.

(c) Obtain loan statements and agree to schedule obtained above.

(d) Noting security details, terms and interest rate.

2. Obtain confirmations from the financial institutions, using standard confirmation

request.

3. Ensure that all interests incurred are accounted for.

4. Ensure that bank borrowings are properly classified between long term and
short term.
5. For addition of bank borrowings during the year, trace proceeds to bank
statement and authorization by the Board.

6. Test vouch repayment of bank borrowings to bank statement.

7. Ensure bank borrowings are separately classified as secured and unsecured.

8. Where borrowings are secured, ensure that register of charges are duly
updated and particulars of the security disclosed in the financial statements.

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AUDIT PROCEDURES DONE

BY

Prepare a brief memorandum summarizing results of work performed including

explanation for any unusual items.

Reviewed by : Date :

Team Leader : …………………………… ………………………….

Team Supervisor : …………………………… ………………………….
Team Manager : …………………………… ………………………….
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 Q1
AU / Q1 / 1

alances as stated in

at of the previous year.

DATE W/P
REF.
 Q1
AU / Q1 / 1

DATE W/P
REF.
#REF!