Manufacturing Procedures Audit

Procedures for
Manufacturing Company
PT ________________________________
CASH AND CASH EQUIVALENTS
Period ended _______________________
AUDIT OBJECTIVES
To determine that:
a. The cash and cash equivalent represent all cash that are owned and on hand, in transit, or
in financial institutions or held in custody by others for the account of the Company and are properly
recorded.
b. The cash and cash equivalent balances are properly described and classified in the
financial statement and adequate disclosures with respect to these amounts have been made.
Work Completed
PROCEDURES WP Date By
Ref
1. Analytic Review
a. Obtain summary of cash on hand and in banks and time deposits.
b. Compare this year’s balances of each significant cash and cash equivalent
account with prior year balance. Investigate any signification or unusual
fluctuations.
2. Confirmation
a. Send confirmation request to all bank’s balance and control mailing of first
request. Retain copies
b. Follow up confirmation reply, and if there is no reply within 10 days, send 2 nd

and 3rd request as necessary.
3. Test of Bank Reconciliation
a. Obtain PBC bank reconciliation and check clerical accuracy.
b. Trace the bank balance for each account to the bank statements. Investigation
any differences, and analyze items of bank reconciliation with material balance
for significant bank account (Scope > Rp ) Trace the book balance for
each account to general ledger.
Check significant balance of deposit in transit and outstanding check to bank statement
after balance sheet date and investigate for long outstanding balance. Review post-year
end bank statement for large or unusual items and follow-up as deem necessary.
Work Completed
Procedures for
Ref
4. Time Deposits
a. Vouch time deposits balance to the original certificate of time deposits and
referred to related documentation.
b. Test computation of accrued interest (at net amount) on time deposits.
5. Convert cash in bank and time deposits in foreign currency into rupiah by using BI
middle exchange rate.(Note: forex diff. Should be recognized in the current
period)
6. Inquire the management if there are changes in policy of cash accounts.
7. Perform senior and supervisor or manager review.
8. Clear senior and supervisor or manager review points.
AUDIT CONCLUSION
Based on the substantive test procedures we performed as outline above, it’s our opinion that the audit
objectives set forth at the beginning of this Work Program have been achieved, subject to the
disposition of adjustment, if any, and exceptions noted as follows:
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Signature(s): -----------------------------
PT ________________________________
ACCOUNTS RECEIVABLE
Procedures for
Period ended _______________________
AUDIT OBJECTIVES
To determine that :
a. Receivable represent all amounts owed to the entity at the balance sheet date and have been
properly recorded.
b. Receivable are properly described and classified in the financial statement and adequate
disclosures with respect to these amounts (including disclosures of amounts that have been
pledged, discounted or sold with recourse or are with related parties ) have been made.
Work Completed
Ref.
1. Analytic Review
Compare balance of accounts receivable by major classification as of December 31,

1997 with prior year balance. Investigate significant or unusual fluctuations.
2. Confirmation
a. Obtain PBC outstanding customers listing of receivable. Test foot schedule and
compare the balance with general ledger
b. Send confirmation request to customers for material balance (Scope>Rp ).

Retain copies. Prepare a confirmation control.
c. Follow up confirmation reply, and if there is no reply within 10 days, send 2 nd

3. Convert A/R balance in foreign currency to rupiah based on BI middle rate
4. Receivable from Related Parties
a. Identify receivable from officers, directors and principal shareholder and

determine whether they arise from routine transactions, such as regularly settled
travel advances, or are related-party transactions.
b. Confirm the balance with the debtors.
c. Consider the need to disclose the transactions and balance.
Work Completed
Procedures for
Ref.
5. Accounts Receivable – Others
a. Obtain schedule of accounts receivable-others
b. Review nature of receivable and reasonableness of recorded accounts.
Discuss collectibility and classification of accounts receivable-others with client.
6. Review of Adequacy of Disclosures
Review the adequacy of financial statement disclosure related to receivable,

including allowances for doubtful accounts and sales discounts, returns and
allowances. Cross-reference the substance of the wording and all amounts disclosed
to the working papers where they are supported and tested.
8. Clear senior and supervisor or manager review points
AUDIT CONCLUSION
objectives set forth at the beginning of this Work Program have been achieved, subject to the disposition
of adjustment, if any, and exceptions noted as follows:
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Signature(s): -----------------------------
PT ________________________________
INVENTORY
Period ended _______________________
Procedures for
AUDIT OBJECTIVES
To determine that :
a. Inventory balances represent all products, materials and supplies that are owned by the entity,
physically exist and are properly recorded.
b. Inventory listing include all inventory items on hand, in storage, on consignment or in transit, are
accurately compiled and the totals are properly included in the inventory accounts.
c. The ending inventories are determined as to quantities, prices, computations excess stock, etc., on a
consistent basis.
d. Inventory is stated at cost and excess slow-moving , obsolete and defective items are reduced to net
realizable values on a consistent basis.
e. Inventory is properly described and classified in the financial statements and adequate disclosures
(including disclosures of a amounts that have been pledged and purchase commitments) with respect
to these amounts have been made.
Work Completed
Ref
1. Analytic Review
a. Obtain summary of inventories
b. Compare this year’s balances of each significant inventories accounts with prior
year balance. Investigate any significant or unusual fluctuations.
2. Understand and test the expenditure cycle of raw and packing materials.
3. Perform test on FMS (Factory Management Support) and Jurog System for inventory
in factory.
4. Understand and test the compliance of conversion cycle.
5. Perform pricing test (FIFO) for inventories.
6. Do physical inventory observation

- Examine the differences between balance of inventory taking with balance per
book
- Identify if there are slow moving or obsolete inventories.
Work Completed
Ref
Procedures for
9. Understand and test the expenditure cycle of raw and packing materials.
10. Perform test on FMS (Factory Management Support) and Jurog System for inventory
in factory.
11. Understand and test the compliance of conversion cycle.
12. Perform pricing test (FIFO) for inventories.
13. Do physical inventory observation

- Examine the differences between balance of inventory taking with balance per
book
- Identify if there are slow moving or obsolete inventories.
AUDIT CONCLUSION
objectives set forth at the beginning of this Work Program have been achieved, subject to the disposition of
adjustment, if any, and exceptions noted as follows:
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Signature(s): -----------------------------
PT ________________________________
PROPERTY, PLAN AND EQUIPMENT
Period ended _______________________
AUDIT OBJECTIVES
To determine that :
Procedures for
a. Property, plan and equipment represent all tangible assets owned or held under capital lease that are
used in the entity’s operations or are under construction, and that they are properly recorded at cost
or other basis which conforms with generally accepted accounting principles applied on a consistent
basis.
b. Additions to property, plan and equipment during the audit period are recorded in proper basis and
represent all actual physical property installed or constructed.
c. The cost and related accumulated depreciation applicable to all retirement, abandonment, property
no longer in service and dispositions have been properly removed from the accounts.
d. Accumulated depreciation accounts are reasonable, considering the expected useful lives of the
property units and expected net salvage value.
e. Property and the related accumulated depreciation accounts are properly described and classified in
the financial statement and adequate disclosures ( including disclosure of liens and encumbrances )
with respect to these amounts have been made.
Work Completed
Ref.
1. Analytic Review
Refer to lead schedules for property, plant and equipment and accumulated
depreciation and related P&L account s (e.g., depreciation, repairs and
maintenance, gain or loss maintenance, gain or loss on disposal of fixed assets )
, and compare individual balances with information from prior year, and
evaluate responses by management for significant or unusual fluctuations.
2. Prepare roll forward analyses of property cost and accumulated depreciation.
a. Trace beginning balances to prior year’s working papers.

b. Check extensions and footing.
c. Cross reference ending balances to WBS.
d. Cross-reference additions, retirements and depreciation prevision for the
year to supporting schedules, if any.
3. Obtain PBC listing of major property additions.
a. Review nature of property additions and reasonableness of recorded

amounts.
b. Vouch property additions. (Scope > Rp )
Physically inspect major property acquisitions, and trace to board minutes
for authorization. (Scope > Rp )
Work Completed
Ref.
Procedures for
4. For additions Fixed Assets with contract agreement, relate it to deposit for
contractor ‘s payable to ascertain no unrecorded mutation.
5. Obtain PBC listing of trade-ins, sales, or other property disposition indicating

accounting treatment for each. (Scope > Rp )
a. Check extensions and footing and cross-reference gain or loss on

disposition to lead schedule.
b. Trace proceeds for major disposals to cash receipt records. Determine that
related cost accumulated depreciation was removed from the accounts.
(Scope > Rp )
c. Trace major property disposal to board minutes for authorization.

(Sope > Rp )
6. Predictive Test of Depreciation Expense
Perform predictive test of depreciation expenses. Compare to actual and

investigate significant differences.
7. Inquire whether any fixed assets have been pledged as collateral. Relate it to
debt section.
9. Clear senior ad supervisor or manager points.
AUDIT CONCLUSION
objectives set forth at the beginning of this Work Program have been achieved, subject to the disposition
of adjustment, if any, and exceptions noted as follows:
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Signature(s): -----------------------------
Procedures for
PT ___________________________________
PREPAID EXPENSES AND ADVANCES
Period ended ________________________
AUDIT OBJECTIVES
To determine that :
a. Prepaid expenses and advances represent all proper charges or amounts that can be
reasonably be expected to be realized through future operations or otherwise and are
property recorded.
b. Prepaid expenses and advances are properly described and classified in the financial
statements and adequate disclosures with respect to these amounts have been made.
c. Amortization for the current year is appropriate.
d. Prepaid taxes represent valid tax prepayments and these prepayments are realizable.
Work Completed
Ref.
Procedures for
ANALYTIC REVIEW
Refer to lead schedules of prepaid expenses and advances and compare individual
account balances with information from prior year. Obtain explanations from, and
evaluate responses by management for significant or unusual fluctuations.
PREPAID RENTAL
1. Obtain PBC listing of prepaid rent (house rent, office rent, warehouse rent) at
year end
2. Test vouch prepayments made during the year. (Scope >Rp )
3. Test mathematical computation to the extent deemed necessary.
4. Review company’s policy of capitalization and amortization.
5. Determine effect of changes, if any.
6. Proper classification of prepaid rent (current and non current).
7. Perform senior and supervisor or manager review
Work Completed
Ref.
ADVANCES
1. Obtain PBC listing of advances (such as advances for advertising and other
advances) at year end
2. Review nature of advances item reasonableness of recorded amount
3. Test expired and unexpired portion of advances.
PREPAID TAXES
1. Obtain PBC schedule of article tax 22, 23 and 25 that were withheld by third
parties and the related income on which the tax was withheld.
2. Reconcile or agree balances per schedule with general ledger.
3. Tests vouch recorded tax prepayment to the original copies “Bukti

pemotongan Pajak” withholding tax art. 22, 23 and 25.
Procedures for
4. Ascertain that only prepaid income tax art. 22, 23 and 25 for the current year is
credited against income trax payable for the current year.
AUDIT CONCLUSION
objectives set forth at the beginning of this Work Program have been achieved, subject to the disposition of
adjustments, if any, and exceptions noted as follow :
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Signature(s): ------------------------------
PT ________________________________
INVESTMENT
Period ended _______________________
AUDIT OBJECTIVES
To determine that :
a. Investment is properly recorded at the balance sheet date represent proper charges or amounts which
can be reasonably be expected to be realized through future operations.
b. Investment is properly described and classified in the financial statements and adequate disclosures
Work Completed
Ref.
Procedures for
1. Analytic Review
a. Obtain summary of investment
b. Compare this year’s balances with prior tear balance. Investigation any
significant or unusual fluctuations.
2. Send confirmation for all investments.
3. Ask for final audit report of subsidiaries.
4. Check calculation of this account.

Noting to: - Good will amortization
- Net income’s (audited) consolidated subsidiaries
- Vouched to supporting document for additional movement (if
any)
AUDIT CONCLUSION
Based on the substantive test procedures we performed as outline above, it’s our opinion that the audit objectives
set forth at the beginning of this Work Program have been achieved, subject to the disposition of adjustments, if
any, and exceptions noted as follow :
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Signature(s): ------------------------------
PT ________________________________
OTHER ASSETS
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. Other assets are properly recorded at the balance sheet date.
b. Other asset are properly described and classified in the financial statements and adequate disclosures
Work Completed
Ref.
Procedures for
1. Refer to lead schedule of other assets and compare individual account balances
with information from prior year. Obtain explanations from, and evaluate
responses by management for significant or unusual fluctuations.
2. Obtain breakdown of bank loans, including the following data, outstanding

principal amount, interest rate, period and accrued expenses.
3. Test PBC listing of loan to officers and employees and send confirmation for
material amount (Scope > Rp )
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
BANK LOANS
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. Bank loans represent valid liabilities of the entity and are properly recorded at the balance sheet date.
b. Interest expenses and any accrued interest are appropriately recorded.
c. The Company has compiled with the terms, restrictions, requirements of the agreement.
d. Bank loans are properly described and classified in the financial statements and adequate disclosures
(such as collateral, interest rate, term of payment ) with respect to these amounts have been made.
Work Completed
Procedures for
Ref.
1. Obtain trial balance, prepare top schedule for bank loans. Tie up trial balance and
ledger figures.
2. Obtain breakdown of bank loans, including the following data, outstanding

principal amount, interest rate, period and accrued expenses.
3. Confirmation
a. Send confirmation request to all bank loans and control mailing of first
request.
Retain copies.
b. Follow up confirmation reply, and reconcile or agree reply with bank balance.
c. Note confirmation reply for any possible violation of loan agreements.
d. If there is no reply within 10 days, send 2 nd and 3rd confirmation request as

necessary.
4. Loan Agreement
a. Examine new loan agreement for increase in debt balance and trace amounts
received to the cash receipt records.
b. Review loan agreements and note for any possible violation of loans
agreement.
5. For loan retirement during period, examine cancelled notes and determine the
proprietary of the disposition of collateral.
6. Proper classification of bank loans ( current and non-current )
Work Completed
Ref.
Procedures for
7. Convert bank loans in foreign currency into rupiah by using BI middle rate ( Note:
forex diff. Should be recognized in the current period )
8. Reasonable test on the interest expenses and examines the SSP on withholding tax
payable art. 26 in case of offshore loan.
9. Test computations of accrued interest payable and verify any unbooked interest
accruals.
10. Proper disclosure on the loan activity and the forward contract.
11. Proper disclosure in the notes any pledged assets ( see confirmation or loan
agreement )
12. Prepare adjustment for all material differences noted.
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
ACCOUNTS PAYABLE
Period ended _____________________
AUDIT OBJECTIVES
Procedures for
To determine that:
a. Accounts payable represent all obligations for services acquired through the balance sheet date and
have been properly recorded.
b. Accounts payable is properly described and classified in the financial statements and adequate
disclosures with respect to these amounts have been made.
Work Completed
Ref.
1. Analytical Review
Refer to lead schedule for accounts payable and compare individual account
balances with information from prior year. Obtain explanations from, and evaluate
responses by management for significant or unusual fluctuations.
2. Obtain schedule of accounts payable trade, affiliate and others. Check footings and
cross-reference total to lead schedule, and tie in schedule with general ledger
balance. Investigate any differences noted. Scan schedule for unusual or large
transaction and payable to affiliate companies. Use this schedule to select samples
of amount to be examined.
3. Confirmation
a. Send confirmation request to significant amount (Scope > Rp ). Prepare a

confirmation control.

c. Ask client to reconcile balances of Replies with Reporting Differences (RDs).

Check material reconciling item. (Scope > Rp ).
4. Perform subsequent payment procedures.
5. Cut Off Tests
a. Obtain PBC schedules of year end receiving and purchase cut off data (receipt
for … days before and after balance sheet date ).
b. Trace selected items in schedules to corresponding receiving reports, purchase

invoices and accounting entries.
c. Trace receipts prior to the balance sheet date to detail of accounting payable
and determine whether they are properly recorded.
d. For receipts after the balance sheet date, determine whether they are properly
recorded after the balance sheet date.
Work Completed
Ref.
Procedures for
6. Intercompany Payable
a. Obtain an understanding of the nature of the intercompany’s transactions.
b. Tie amounts to the intercompany receivable reflected in the audit wprking

papers for the affiliates. If the intercompany accounts are not in balance, have
client personnel prepare reconciliation. Vouch significant or unusual
reconciling items. Propose adjustments for recorded transactions, if
appropriate.
7. Account Payable – Others
a. Obtain schedule of accounts payable-others.
b. Review nature of payable and reasonableness of recorded accounts.
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
ACCRUED EXPENSES
Period ended _____________________
AUDIT OBJECTIVES
Procedures for
To determine that:
a. Accrued expenses include valid obligations of the entity and are properly recorded at the balance
sheet date.
b. Accrued expenses include all amounts owed by the entity, agency obligations and other liabilities.
c. Accrued expenses are properly described and classified in the financial statements and adequate
Work Completed
Ref.
1. Obtain PBC schedule detailing the bases for, and calculations of, expenses
incurred but not yet paid at the balance sheet.
a. Review nature of the year end balances and the reasonableness of the bases
used in their calculations.
b. Test mathematical computations to the extent deemed necessary.
2. Circularize Legal Counsel.
a. Send confirmation request to law firm and control mailing of first request.
Retain copies, and prepare a confirmation control.

c. Obtain and review legal council responses and conclude to financial

statements impact.
AUDIT CONCLUSION
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Signature(s): ------------------------------
Procedures for
PT ________________________________
TAXES PAYABLE
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. The recorded obligations (assets) for income and other taxes represent all taxes payable (prepaid or
refundable) at the balance sheet date and have been properly recorded.
b. The provision (credit) for income taxes currently paid or payable (or refundable) is adequate but not
excessive.
c. Income and other tax amounts are properly described and classified in the financial statements and
adequate disclosures with respect to these amounts have been made.
Work Completed
Ref.
Procedures for
Test of Provision for Income Taxes Currently Paid or Payable
Obtain PBC reconciliation of pretax accounting income with estimated taxable income
for the current period.
1. Check extension and footings.
2. Cross-reference per book balances to WPL and computed income taxes to

amounts in PBC rollforward of activity.
3. Obtain and test client’s support for permanent and temporary differences. Cross-
reference amounts to other areas of the workpapers.
4. Check computations of the current provision for income taxes by applying the
appropriate statutory tax rates to the taxable income.
INCOME TAX ARTICLE 21
1. Obtain or prepare schedule of monthly installments of income tax art. 21 to the

State Treasury during the year (showing date, covering month and amount of
remittances).
2. Vouch monthly installment details with the related original “bukti setoran” with
the acknowledge receipt issued by the State Treasury or authorized bank.
3. Agree the total of monthly installment with the control account balance of the
prepaid income tax article 21.
4. Test-check calculation of income tax article 21.
Work Completed
Ref.
Procedures for
1. Obtain list of “bukti pungutan” of income tax article 22 issued by the suborned
bank or designed government agencies.
2. Subtantially test-check the above list to the covering original “bukti pungutan”.
3. Agree the total of “bukti pungutan” with the control account balance of the period
income tax article 23/26.
1. Obtain or prepare schedule of monthly installments of income tax article 25 to the

State Treasury during the year (showing date, covering month and amount of
remittances) and indicate method of computing the installments.
2. Vouch monthly installment details with the related original “bukti setoran” with
the acknowledge receipt issued by State Treasury or authorized bank.
3. Agree the total of monthly installment with the control account balance of the
prepaid income tax article 25.
VALUE ADDED TAX
1. Obtain or prepare schedule of monthly report and payment of VAT to the State
Treasury during the year (showing date, covering month and amount of
remittances).
2. Vouch monthly report and payment details with the related original “bukti
setoran” and “Surat Pemberitahuan Masa (SPM) with the acknowledge receipt
issued by the State Treasury or authorized bank.
3. Ask the reconciliation for VAT between ledger and SPM. Investigate and examine
this reconciliation and tie up to ledger balances.

Procedures for
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
Procedures for
STOCKHOLDERS’EQUITY
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. Capital and other equity accounts represent all amounts paid in for capital stock issued, amounts
paid in excess of par or stated value and undistributed earnings.
b. The amounts in the capital and other equity accounts are in compliance with the requirements of the
corporate charter (or articles of incorporation or similar grant of legal authority) and with the
applicable statues of the state of incorporation and are properly recorded.
c. All transactions within the capital and other equity accounts during the audit period are properly
authorized and recorded.
d. Capital and other equity amounts are properly described and classified in the financial statements
and adequate disclosures with respect to amounts have been made.
Work Completed
Ref.
Refer to lead schedules (WBS and WPL) and compare individual account
balances with information from prior year. Obtain explanations from, and evaluate
explanations by management for significant or unusual fluctuations.
2. Obtain or update a summary information about stock ownership, conversion

rights, dividend, restriction and other matter.
3. Obtain or update article of incorporation, corporate, corporate minute, and other

relevant documents.
4. Send confirmation request to shareholders.
5. Dividends
a. Obtain PBC of total dividend’s paid or payable.

- Trace to minutes of board of directors’ meeting (and stockholders’
meetings, in the case of stock dividends) for authorization.
- Check clerical accuracy of computations.
b. Tie in the unoaid dividends at balance sheet date to schedule of other payable.
6. Review of Presentation and Adequacy of Disclosure
Determine that adequate footnote disclosure is made on arrears of cumulative

dividends; restrictions on retained earnings and other surplus accounts; and
reasons for retention of retain earnings in excess of 100% of paid in capital. Check
calculation of amounts involved.

Procedures for
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
Procedures for
SALES
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. Sales represent all transaction (products shipped or services provided) that occurred during the
period and have been properly recorded in a consistent basis.
b. Sales are properly described and classified in the financial statements and adequate disclosures with
respect to these amounts have been made.
Work Completed
Ref.
1. Discuss with the client the revenue recognition and evaluate whether, if any, the
changes in policy require disclosure.
2. Have a monthly analysis of sales by product line (including gross sales, returns,
volume).
3. Cross check the total of sales in the analysis to general ledger. Ask from client the
reconciliation if there are differences and tests vouch the significant reconciling
items.
4. Cross check the selected monthly total sales from analysis to the sales journal.
Investigate the significant differences. (Scope > Rp )
5. Compare total sales and sales deductions with proceeding period amounts and
with the budget. Investigate significant or unusual fluctuation.
6. Perform pricing test procedure.
7. Royalty and Technical Assistant
Review the applicable agreements and related documents supporting the

computation on the royalty expense incurred in the current period.
8. Cut Off Test
Review the shipping record for ---- days before and after the balance sheet date.
Relate the shipments to the dates on which the sales were recorded
(Scope > Rp )

Procedures for
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
COST OF GOODS SOLD
Period ended _____________________
Procedures for
AUDIT OBJECTIVES
To determine that:
a. Cost of goods sold is properly recorded and represent all transaction (products shipped or services
provided).
b. Cost of goods sold is properly described and classified in the financial statements and adequate
Work Completed
Ref.
a. Have the client prepare a comparative analysis of gross margin by product

line, division or period. Investigate significant variations.
b. Compare account balance with proceeding period balances and investigate

significant fluctuations.
2. Perform a predictive test of cost of goods sold, based on production records or

other data prepared independently of the accounting department. Calculate total
sales, using an average sales price , and derive cost of goods sold. Investigate
significant variances between the predicted and recorded amount.
3. Cross-reference the overhead and variances accounts to the analytical review

performed in conjunction with the audit of standard inventory costs.
4. Cross-reference provisions for depreciations and amortization included in cost of

goods sold to the tests performed in the audit of accumulated depreciation
5. Consider the need to examined critical forms and documents to support unusual
amounts or variations.

Procedures for
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
Procedures for
OPERATING EXPENSES
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. All operating expenses are properly recorded and represent all selling, general, and administration
transaction that occurred during the period.
b. All operating expenses are properly described and classifies in the financial statements and adequate
Work Completed
Ref.
1. Analytic Review
Refer to WPL and lead schedules of expenses’ accounts. Compare individual

account balances with information from prior year and with current year budget
(if available). Obtain explanations from, and evaluate responses by management
for significant or unusual fluctuations.
2. Cross-reference expense amounts, where applicable, to analyze of balance sheet

accounts (for example, depreciation and amortization expenses, bad debt
expenses).
3. Perform predictive test on major expenses balances or expenses with big

fluctuation.
AUDIT CONCLUSION
any, and exceptions noted as follows :
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Signature(s): ------------------------------
Procedures for
PT ________________________________
OTHER EXPENSES
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. Other expenses are properly recorded and represent all expenses transaction (except cost of goods
sold and operating expenses) that occurred during the period.
b. Other expenses are properly described and classifies in the financial statements and adequate
Work Completed
Ref.
Procedures for
1. Analytic Review
Refer to WPL and lead schedules of expenses’ accounts. Compare individual

account balances with information from prior year and with current year budget
(if available). Obtain explanations from, and evaluate responses by management
for significant or unusual fluctuations.
2. Cross-reference significant other expense (e.g., interest expenses, loss on disposal

of fixed asset) to other relevant workpaper.
3. Perform predictive test on major expenses balances or expenses with big

fluctuation.
AUDIT CONCLUSION
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Signature(s): ------------------------------
PT ________________________________
OTHER INCOME
Period ended _____________________
AUDIT OBJECTIVES
To determine that:
a. Other income is properly recorded and represent all revenue transaction (except sales) that occurred
during the period.
b. Other income is properly described and classifies in the financial statements and adequate
Work Completed
Ref.
Procedures for
1. Analytic Review
Refer to WPL and lead schedules of income accounts. Compare individual

account balances with information from prior year and with current year budget (if
available). Obtain explanations from, and evaluate responses by management for
significant or unusual fluctuations.
2. Cross-reference significant other income (e.g., interest income, loss on disposal of

fixed asset) to other relevant workpaper.
3. Perform predictive test on major income balances or income with big fluctuation.
AUDIT CONCLUSION
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Signature(s): ------------------------------

Manufacturing Procedures Audit

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Manufacturing Procedures Audit

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Procedures for

a. Obtain summary of cash on hand and in banks and time deposits.

b. Follow up confirmation reply, and if there is no reply within 10 days, send 2 nd

3. Test of Bank Reconciliation

a. Obtain PBC bank reconciliation and check clerical accuracy.

b. Test computation of accrued interest (at net amount) on time deposits.

6. Inquire the management if there are changes in policy of cash accounts.

7. Perform senior and supervisor or manager review.

8. Clear senior and supervisor or manager review points.

Period ended _______________________

Compare balance of accounts receivable by major classification as of December 31,

b. Send confirmation request to customers for material balance (Scope>Rp ).

c. Follow up confirmation reply, and if there is no reply within 10 days, send 2 nd

3. Convert A/R balance in foreign currency to rupiah based on BI middle rate

4. Receivable from Related Parties

a. Identify receivable from officers, directors and principal shareholder and

b. Confirm the balance with the debtors.

c. Consider the need to disclose the transactions and balance.

5. Accounts Receivable – Others

a. Obtain schedule of accounts receivable-others

b. Review nature of receivable and reasonableness of recorded accounts.

Discuss collectibility and classification of accounts receivable-others with client.

6. Review of Adequacy of Disclosures

Review the adequacy of financial statement disclosure related to receivable,

7. Perform senior and supervisor or manager review.

8. Clear senior and supervisor or manager review points

a. Obtain summary of inventories

4. Understand and test the compliance of conversion cycle.

5. Perform pricing test (FIFO) for inventories.

6. Do physical inventory observation

7. Perform senior and supervisor or manager review.

8. Clear senior and supervisor or manager review points.

11. Understand and test the compliance of conversion cycle.

12. Perform pricing test (FIFO) for inventories.

13. Do physical inventory observation

14. Perform senior and supervisor or manager review.

15. Clear senior and supervisor or manager review points.

2. Prepare roll forward analyses of property cost and accumulated depreciation.

a. Trace beginning balances to prior year’s working papers.

3. Obtain PBC listing of major property additions.

a. Review nature of property additions and reasonableness of recorded

5. Obtain PBC listing of trade-ins, sales, or other property disposition indicating

a. Check extensions and footing and cross-reference gain or loss on

c. Trace major property disposal to board minutes for authorization.

6. Predictive Test of Depreciation Expense

Perform predictive test of depreciation expenses. Compare to actual and

8. Perform senior and supervisor or manager review.

9. Clear senior ad supervisor or manager points.

c. Amortization for the current year is appropriate.

2. Test vouch prepayments made during the year. (Scope >Rp )

3. Test mathematical computation to the extent deemed necessary.

4. Review company’s policy of capitalization and amortization.

5. Determine effect of changes, if any.

6. Proper classification of prepaid rent (current and non current).

7. Perform senior and supervisor or manager review

8. Clear senior and supervisor or manager review points.

2. Review nature of advances item reasonableness of recorded amount

3. Test expired and unexpired portion of advances.

4. Perform senior and supervisor or manager review.

5. Clear senior and supervisor or manager review points.

2. Reconcile or agree balances per schedule with general ledger.

3. Tests vouch recorded tax prepayment to the original copies “Bukti