REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Department of Social Welfare and Development
National Capital Region
City of Manila

Audit Program

Accounts: Accounts Payable, Due to BIR, GSIS, Pag-ibig, Philhealth

Due to NGAs, GOCCs, LGUs

Audit Objectives and Audit Procedures WP Man- Remarks

Assertions Ref. days
1. To ascertain 1. Trace beginning balance to
completeness and prior year's audit working ATM/
correctness of account papers/ending balance prior ATL
balance as recorded in year's financial statements and
the books. (Accuracy General Ledger.
and Completeness)
2. Trace debit and credit postings
Risks and Possible Risks in the GL to the Check
Identified: Disbursements Journal (CkDJ)
and General Journal (GJ) to the
a) The amount recorded is Report of Disbursements /
not accurate. Report of Checks Issued.

b) Not all payables are 3. Foot the debit and credit

recorded in the books. entries in the GL and establish
the balance.
c) Possible risk of
unremitted 4. Secure copy of trial balance
premiums/taxes and supporting schedule.
withheld.
5. Compare the GL balance with
d) Possible recording of the balance in the Trial
Accounts Payable Balance (TB) and the totals of
despite incomplete the subsidiary ledger and the
documentation/ Possible Schedule of A/P for
risk of unsupported completeness and correctness
claims; of entries.

e) Possible risk of 6. Investigate discrepancies and

existence of Accounts prepare AOM if necessary.
Payable aged two (2)
years above not
reverted to the
Accumulated Surplus
(Deficit);
 Audit Objectives and Audit Procedures WP Man- Remarks
Assertions Ref. days
a) Possible risk of
invalid claims.

2. To determine whether 1. Select sample GL debits and

all charges to the credits to be vouched using ATM/
accounts are made in materiality as basis. ATL
accordance with
applicable laws, rules 2. Obtain Payroll covered by the
and regulations and are sample transactions:
remitted to appropriate
parties. (Regularity) a) Verify mathematical
computations and accuracy
Risks and Possible Risks of footings and cross-
Identified: footings.

a) The amount recorded are b) Reconcile totals with entries

not in accordance with in corresponding JEV. Take
laws, rules and note of any difference.
regulations and in
accordance with GAM. c) Check if all authorized
deductions were made at the
b) The amounts recorded prescribed rates. Take note
arose from irregular or of any deviations and those
onerous contract or representing unauthorized
MOA. deductions.

3. For Due to BIR, representing

withholding taxes from creditors,
verify sample transactions
against RCI and DVs (for
credits) and TRAs (for debits).

4. Check whether remittances made

has a corresponding credit to the
account.

5. Prepare and issue AOM, if

necessary

3. To determine whether 1. Select balance of payables with

the amount recorded significant amount as sample ATM/
represents actual and confirm the balance to the ATL
payables of the agency. creditor by performing the
(Existence) following:
 Audit Objectives and Audit Procedures WP Man- Remarks
Assertions Ref. days
Risks and Possible Risks
Identified: a) Prepare Confirmation
Letters and send to the
a) The amount recorded respective creditors through
may not belong to the registered mail, fax and
agency. email.

b) The amounts recorded b) To assure the competency

may not be existing. of the evidence from this
procedure, include in the
letter a Confirmation Reply
Form.

c) Evaluate the results of

confirmation.

d) Investigate unconfirmed
amounts and those disputed
by creditors.

2. Secure clarification from

management of any exceptions
noted especially if it is dormant.

3. Prepare working papers,

investigate and take note of any
deficiencies.

4. Prepare and issue AOM, if

necessary.

4. To determine whether 1. Compare statement

the recorded accounts presentation with the GAM. ATM/
are properly and ATL
consistently classified 2. Determine that the account
and presented and that is properly identified and
disclosures are classified in the FS.
appropriate.
(Presentation and 3. Determine the
Disclosure) appropriateness/ completeness
of disclosures made in the
Risks and Possible Risks Notes to FS.
Identified:
4. Prepare and issue AOM, if
a) The amount recorded necessary.
may not be properly
classified.
 Audit Objectives and Audit Procedures WP Man- Remarks
Assertions Ref. days
b) Any deviations or
abnormal conditions
may not be properly
disclosed.

c) Possible risk of
unreverted payables
without valid claims/
unsupported/dormant/

Prepared By: Reviewed By:

MARYJANE H. SADANG ELEANOR G. JOVES

Audit Team Leader Supervising Auditor
Date: _________________ Date: _____________