Execution Phase

Sample Audit Programs

Liabilities Long Term Debt

Execution Phase
Sample Audit Programs
Liabilities Long Term Debt

WP Ref.:
Prepared by:
Date:
Reviewed by
Date

Audit Program
(i)

Long Term Deposit

Client:
Period:
Subject:

Long Term Deposit

Amount in Rs.

Account balances:

Classes of transactions:

S. No.

Audit Objectives

Assertions

Risk Assessment
IR

To ensure that long term deposits

represent valid claims by third parties.
To ensure that all deposits received
from customers or other third parties
have been accounted for in the books of
the company on a timely basis.
To ensure that long term deposits are
recorded at the correct amount.
To ensure that long term deposits have
been presented, classified and disclosed
in the financial statements in
accordance with the requirements of
applicable financial reporting
framework i.e. Companies Ordinance,
1984 and applicable International
Financial Reporting Standards.

Existence, Rights
& Obligations

Completeness

Valuation

Presentation
Disclosure

&

CR

ROSM

Execution Phase
Sample Audit Programs
Liabilities Long Term Debt

S. No.

Audit Procedures

Analytical Procedures
1.

Compare balances to prior periods and budgets seeking

explanations for unusual items and significant variances.

2.

Review movement during the year in long term deposits

and ensure reasonableness of changes during the year.

Test of Details
1.

TEST LONG TERM DEPOSIT BALANCES

A. Ascertain the nature of deposits by inquiry or by
reviewing prior years working papers
B.

Examine the supporting documents of deposits e. g.

contracts with customers etc.

C.

Circularize confirmations to selected parties. Match

replies with the amounts shown in general ledger.

D. Check that the amounts of deposits to which Sec 226 of

the Companies Ordinance, 1984 applies have been
credited by the client in a separate bank account as
required by that Section.
2.

TEST PRESENTATION
A. Determine that disclosures have been made in
accordance with the requirements of the Companies
Ordinance, 1984 and the relevant accounting
pronouncements.

Done by

W. P. Ref.