Audit Program Npo Grouptask Manaigmercadosalvio

MANAIG, GILSON
MERCADO, ANDRIA
SALVIO, JANINE
AAS : Specialized Industry
NON-PROFIT ORGANIZATION
AUDIT PROGRAM FOR INVESTMENTS
Audit Objective:
 To determine whether the balances reflect a complete listing of investments, and the
ownership of such assets is evidenced by securities or other appropriate legal
documents either physically on hand or held in safekeeping by others.
 To determine whether asset values and investment income or loss, valuation allowances,
and gains or losses on sales of investments are appropriately recorded and presented.
 To determine whether investments are properly described and classified in the balance
sheet, and disclosure have been made for any restrictions, pledges, or liens against the
assets and adequate disclosures have been made in accordance with relevant PAS.
 To ensure that investments made during the year are in accordance with the objects of
the company.
Audit Procedures:
A. TEST OF CONTROLS
ASSERTIONS TEST OF CONTROLS
I Existence and Occurrence  Inspect the investment securities on hand

Investments reported on the financial and comparing with previous year
statements really exists at the balances and accounts along with
reporting date. purchases and sales in the current year.
II Completeness  Inspect the schedule of all investments.

All investments that should have been
recorded have actually been
recorded.
III Rights and Obligations  Inquire management about any

The client has ownership rights for all restrictions placed on investments.
investments as of the reporting date.
IV Valuation  Observe whether the recognition of gains

Investment balances truly reflect their or losses are properly applied in
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MANAIG, GILSON
MERCADO, ANDRIA
SALVIO, JANINE
actual economic value as at reporting accordance with the standard.
date.
V Presentation and Disclosure  Examine the chart of accounts.

Investments have been properly
classified and appropriately disclosed
(e.g. any restrictions) in the notes to
financial statements.
B. SUBSTANTIVE PROCEDURES
ASSERTIONS AUDIT PROCEDURES
I Existence and  Vouch new purchases and disposals of investments to

Occurrence supporting documents.
 Physically inspect all investments
 Perform direct confirmation with the brokerage (for
investments held by broker)
II Completeness  Reconcile the beginning balance in the schedule to the

previous year audited balance.
 Examine the transactions around year-end to ensure all
investments have been recorded in the correct accounting
period
III Rights and  Examine related documents to determine whether there

Obligations are any restrictions on investments.
IV Valuation  Vouch the investment balances to the actual market value

at year-end.
 Determine whether gains or losses, as a result of changes in
market value, have been properly recorded.
 Recalculate interest income or dividend income from
investments.
V Presentation and  Verifying that if any restrictions have been placed on

Disclosure investments are properly disclosed in the notes to
accounts.
 Verifying that investments have been properly classified
MANAIG, GILSON
MERCADO, ANDRIA
SALVIO, JANINE
and reported.
AUDIT PROGRAM FOR CONTRIBUTIONS RECEIVED

Audit Objective:
 To determine that contributions received that are shown on the statement of financial
position at the reporting date really exist
 To determine that all transactions relative to contributions received have been recorded
in the proper accounting period.
 To ensure that contributions received are recorded and presented at proper amounts in
accordance with applicable reporting standards
 To determine that contributions received are properly presented, classified and
disclosed
 To determine if the donor has set any limitations or limits, or if the NPO is operating as
an agent
Audit Procedures:
A. TEST OF CONTROLS
ASSERTIONS TEST OF CONTROLS

I. Occurrence  Inspect the grants and contributions
Recorded contributions received received and compare it with previous
transactions actually occurred year balances and accounts with
purchases and sales in the current year
II. Rights and Obligations  Inquire if there is any restrictions placed
The organization has legal title or on the grants and contributions
equivalent ownership rights to the received by the organization
contributions received as of the
reporting date.
III. Existence and Completeness  Inspect the books and the schedule of
Recorded contributions received are the contributions received
complete and exists on the journals.  Observe whether the balance on the
account is growing and if so, find out
why by discussing with management
IV. Valuation and Allocation  Observe whether the grants and
Contributions received truly reflects contributions received by the
their actual amount as of reporting organization are in conformity with
MANAIG, GILSON
MERCADO, ANDRIA
SALVIO, JANINE
date GAAP and consistent with the prior
period
V. Presentation and Disclosure  Examine the chart of accounts
Receivables are properly described
and classified in the Statement of
Financial Position
B. SUBSTANTIVE PROCEDURES
ASSERTIONS AUDIT PROCEDURES

I. Occurrence and Validity  Examine the documentation supporting
II. Rights and Obligations recognition of contribution revenues,
noting whether the donor has imposed
any conditions or restrictions or
whether the NPO might be acting as an
agent. For large donations, NPOs usually
have guidelines. The auditor should ask
for guidelines relating to the receipt of
donations. Also, the auditor must be
extra skeptical of large donations as
they can be from politically exposed
persons (PEPs) or high-risk
individuals/entities.
 Conduct a straight information of the
supporting materials received.
 Check relevant documents to see if
there are any contribution restrictions
III. Existence and Completeness  Examine contributions reported before
and after the fiscal period end to
determine if they are reported in the
appropriate period.
 Review and test the methods and
assumptions used to measure
contribution revenue at the time of
initial recognition.
 Select from data accumulated and
maintained by the fund-raising function,
and determine whether a contribution
should have been recognized. If so, the
auditor must vouch for it to be a
recognized contribution.
IV. Valuation and Allocation  Examine the remuneration given to key
management personnel as there is a
MANAIG, GILSON
MERCADO, ANDRIA
SALVIO, JANINE
possibility of fraud in salary expenses.
 Check to see of gains and losses have
been correctly reported
V. Presentation and Disclosure  Evaluate financial statement
presentation and disclosures of grants
and contributions
 Verifying that donations and
contributions have been properly
classified and reported
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MANAIG, GILSON

AUDIT PROGRAM FOR INVESTMENTS

ASSERTIONS TEST OF CONTROLS

I Existence and Occurrence  Inspect the investment securities on hand

II Completeness  Inspect the schedule of all investments.

III Rights and Obligations  Inquire management about any

IV Valuation  Observe whether the recognition of gains

V Presentation and Disclosure  Examine the chart of accounts.

ASSERTIONS AUDIT PROCEDURES

I Existence and  Vouch new purchases and disposals of investments to

II Completeness  Reconcile the beginning balance in the schedule to the

III Rights and  Examine related documents to determine whether there

IV Valuation  Vouch the investment balances to the actual market value

V Presentation and  Verifying that if any restrictions have been placed on

AUDIT PROGRAM FOR CONTRIBUTIONS RECEIVED

ASSERTIONS TEST OF CONTROLS

ASSERTIONS AUDIT PROCEDURES

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