Bunag, Sherilyn C.

BSA – A3A

Audit of Government Audit of Non-Profit

Agencies Organizations
Pre-Planning
What are the Cash and Cash Equivalents (1) Cash and Cash Equivalents (1)
prominent accounts and Property, Plant and and Investment Properties (2)
used in this Equipment (2)
particular industry?

What financial (1) Completeness, Accuracy, (1) Existence, Completeness,

statement assertions Existence Accuracy
are affected by these (2) Existence, Valuation, (2) Existence, Valuation, Rights
accounts? Accuracy and Obligations

Planning
What are the audit Intentional omission of
risk factors/threats reconciling items
that are mainly Unrecorded transactions or
expected to arise in expenditure of funds
this particular Misstatement errors in
industry? accounting for depreciation
Improper valuation of PPE
Lack of segregation of duties
Improper valuation of investment
properties accounts
Intentional misstatement of
recorded amounts

Internal Control Considerations

What are the Cash receipts cycle Cash receipts cycle
transaction cycle Receivables cycle Receivables cycle
that are greatly Payables cycle Payables cycle
affected by the Financing cycle
nature of their Investing cycle
business?

Substantive Audit Procedures

Based on the above Physical inspection of recorded Reconcile book balances from
assertions, what purchase of equipment bank statements
audit procedures Confirm expenditure of funds Physical inspection of acquired
should be applied? through reconciliation of investment properties
supporting documents and Select a sample item from high
bank statements risk accounts in trace existence
Select a sample item and trace from relevant source documents
relevant accounts and amounts Examine the presented supporting
record to the ledger documents on the investment
properties