Client: ABC Corporation

Engagement: Financial Statement Audit

Subject: Audit Program - Provision for Liabities and Charges
Audit Period: Year ended December 31, 2012
Activity: Agree Procedures
Working Paper Reference M.1000

Initials of preparer
Results of the procedures performed and reference to
Procedures Relevant assertions and date
specific audit evidence.
1. Leadorschedule
Obtain prepare a lead schedule setting out the movement in C A CO E/O RO V PD
the period for each category of investment property and
perform the following procedures:
a. Test of mathematical accuracy of the lead schedule.
b. Agree lead schedule and to the general ledger and prior year
working paper.
c. For accounts to be tested, cross refer to specific procedures
performed.

2. Accounting Policies C A CO E/O RO V PD

Confirm that the accounting policies applied to provisions for

liabilities and charges comply with IFRS, particularly IAS 37.

3. Test of Controls C A CO E/O RO V PD

Test the significant controls identified on Forms 422, 511 and
522 and conclude on the effectiveness of their design and
effectiveness of operation throughout the period. Identify the
assertions for which they contribute significant assurance.

4. Analytical Procedures C A CO E/O RO V PD

1. Review provisions for reasonableness and consistency with
previous years. Enquire into and obtain explanations for any
unusual movements.

2. Consider whether substantive analytical procedures will be

effective. If so:

contributed significant assurance.

5. Substantive Procedures C A CO E/O RO V PD

1. Consider whether all necessary provisions have been
accounted for including: b b b
1.1 Contracts to buy goods above normal selling prices;
1.2 Contracts to sell goods below normal cost;
1.3 Carrying out work or providing services below cost;
1.4 Other contract losses;
1.5 Onerous covenants;
1.6 Rectification of products under guarantee;
1.7 After sales services and sales claims;
1.8 Litigation - actual or potential;
1.9 Long-term service awards;
1.10 Pensions and other post employment benefits;

1.11 Redundancies, where a constructive obligation exists; and

1.12 Any other financial commitments.

3. Review the assumptions made by management in

determining provisions for reasonableness, and test the b
calculations involved.

4. Consider whether provisions have been accounted for

consistently compared with previous years. b

5. Verify expenditure charged against provisions, confirming

the provision has been utilised for the purposes for which it has b b
been stated to be established.

6. Confirm provisions have been posted to the general ledger. b

7. Where necessary, ensure that the adequacy of the provision b b b

has been verified by independent third party confirmations.

6. Presentation and Disclosure C A CO E/O RO V PD

 Initials of preparer
Results of the procedures performed and reference to
Procedures Relevant assertions and date
specific audit evidence.
6.1 Ensure that disclosure of provisions for liabilities and
charges in the draft financial statements complies with IFRS,
particularly IAS 1 and 37. b

6.2 Identify whether any provisions are due after more than one
year, and ensure appropriate disclosure on the balance sheet.

8. Additional test C A CO E/O RO V PD

Consider whether any additional tests are required to achieve
the audit objectives.

Engagement Reviewer Sign-Off

Name of Reviewer:
Date of Sign-off:

Engagement Partner Sign - Off (If risk to account is considered significant risk)
Name of Engagement Partner:
Date of Sign-off:
Client: ABC Corporation
Engagement: Financial Statement Audit
Subject: Lead Schedule - Provision for Liabilities and Charges
Audit Period: Year ended December 31, 2012
Activity: Agree Procedures
Working Paper Reference: M.2000

Current year
Accounts unadjusted Prior year Movement Remarks
balance
Provision - directors fees
Provision - audit fees

Conclusion:

Note: Refer to Guidance for the procedure to be performed

Client: ABC Corporation
Engagement: Financial Statement Audit
Subject: Scoping - Provision for Liabilities and Charges
Audit Period: Year ended December 31, 2012
Activity: Agree Procedures
Working Paper Reference: M.3000

Performance Materiality: 1,000,000.00

Clearly Trivial: 25,000.00

Testing
Account Unadjusted balance Scope-In Scope-out Rationale Recomputation
Provision - directors fees
Provision - audit fees

Conclusion: (Please provide conclusion regarding the appropriateness of the planned procedures)

Note: Please indicate rationale for scope-in accounts and the planned Test of Control and Substantive Testing
Client: ABC Corporation
Engagement: Financial Statement Audit
Subject: Substantive Analytics- Provision for Liabilities and Charges
Audit Period: Year ended December 31, 2012
Activity: Scoping of Provision for Liabilities and Charges
Working Paper Reference M.4000

1. Review Borrowings for reasonableness and consistency with previous years. Inquire into and obtain explanations for any unusual movements.

Current year Prior year Discussion of Significant

Account Movement
balance balance Movement
Provision - directors fees -
Provision - audit fees -
Total - - -

2. Consider whether substantive analytical procedures will be effective. If so:

Step 1: Define the objective of the procedure;
Step 2: Determine the examination method;
Step 3: Define a significant deviation;
Step 4: Specify the reliance desired;
Step 5: Determine the expected result;
Step 6: Examine any deviation from the expected result;
Step 7: Evaluate the results and conclude; and
Step 8 : Identify the assertions for which analytical procedures have contributed significant assurance
Client: ABC Corporation
Engagement: Financial Statement Audit
Subject: Accounting Policy- Provision for Liabilities and Charges
Audit Period: Year ended December 31, 2012
Activity: Scoping of Provision for Liabilities and Charges
Working Paper Reference M.5000

Company Accounting Policy Requirements of PFRS Remarks

Initial Recognition

Initial Measurement

Subsequent Measurement

Classification

Derecognition

Overall Conclusion:
Client: ABC Corporation
Engagement: Financial Statement Audit
Subject: Recomputation- Provision for Liabilities and Charges
Audit Period: Year ended December 31, 2012
Activity: Scoping of Provision for Liabilities and Charges
Working Paper Reference M.5000

PROVISION - DIRECTORS FEE

Beginning balance
Additional Provision for the year - [x]
Payment made - [y]
Should be balance -
PER TB -
Difference -

[x] Director's Name Amount Tax rate Amount of tax Net of Tax
15% or 10% -
25% - -
TOTAL - -
multiply by 12 months 12 12
Anuual Directors' fee - -

Amount recognized as expense

[y] Director's Name Amount Tax rate Amount of tax Net of Tax
15% or 10%
25%
TOTAL -
multiply by 12 months 12
Amount paid -
 PROVISION - AUDIT FEES

Beginning Balance
Reversal of PY provision:
Payment for audit fee [M]
Audit fee adjustments
-
Provision for 2011
Additional provision made
TOTAL Provision for 2011 -
2011 audit fee (per proposal) [N]
Audit fee provision
Under(over) provision -

[M] Audit fee per 2010 proposal TOTAL Audit fee and OPE -
Out of pocket (10% of fees) - plus VAT -
TOTAL fee - amount paid -
VAT rate 12%
TOTAL audit fee(VAT incllusive) -

[N] Per proposal

plus VAT (12 % of amount per proposal)
Out of pocket (10% of fees) -
TOTAL audit fee(VAT incllusive) -