Integrated Workshop 2

Audit
Competencies
 Evaluate the reasonableness of the presentation of the financial statements, in accordance
with current regulations.

 Evaluate taxpayers' compliance with their tax obligations, taking into account the legal
regulations in force.

 Evaluate the organization's risk management, considering the organization's strategic

objectives.
 INTRODUCTION

The audit in question corresponds to the Financial Statements of the company ÑINQUIL LTDA,
however, it is important to point out that although it is carried out on the Financial Statements, it
also corresponds to the internal control, which is the matrix or the birth of any audit, since the
operation of any company in any of its areas is derived from it.

In such sense what stated by Domínguez (2017):

The broad subject matter on the application of the internal control system
highlights the importance of its implementation in order to obtain information on
the financial status of an organization and to take precautionary measures aimed
at meeting the objectives set by the organization.

In other words, the optimal application of internal control results in the correct preparation
and preparation of the financial statements, which represent the financial situation of a company
in a given period, but which, when audited and audited, acquire a significant value in the financial
world for future investments.
Company Background

The company"ÑINQUIL LTDA.", incorporated on January 02, 2020, is a trading company of

agricultural machinery.

VISION

To be leaders in sales of agricultural machinery in the Araucanía region.

MISSION

To be the main Chilean company in the sales of agricultural machinery, oriented to respect the
environment and renewable energies with excellent after-sales service.

VALUES AND PRINCIPLES

Corporate values will focus on:

- Internal and external customer satisfaction.
- Total Quality.
- Respect.
- Deliver environmentally friendly machinery.
- People.

AUDIT
CURRICULUM: 1112307 - 1182302
Company Organization Chart

Gerencia
General

Administración

Recursos
Informática Ventas
Humanos

Servicio Post
Venta

Company analysis

The same is in charge of the general manager Mr. Lucas Llanao Bustos. Lucas Llanao
Bustos, has requested advice for an audit in the field of risk management, financial and tax, in
early August 2021 and it is due that the company has the purpose of representing a German
company that sells quality agricultural machinery, therefore the foreign company needs to have
the security of its operations in accordance with current regulations.The company has the purpose
of representing a German company that is dedicated to the sale of quality agricultural machinery,
therefore the foreign company needs to have the security of its operations in accordance with
current regulations and that it also complies with the financial regulations required by our country.

Among the requests is the performance of a comprehensive audit of the financial

statements for the business year 2020 through the IFRS FULL financial standards, for which the
delivery of working papers and a reclassification of the Statement of Position and Statement of
Comprehensive Income is requested.

Subsequently, a tax audit must be carried out in the area of Income Tax, evaluating the
company's Net Taxable Income, Tax Equity, Business Records and proposal, if applicable, of Form
No. 22. In addition, they must audit the Value Added Tax portion. Also, according to the
information provided and the results obtained, they must carry out a Risk Management
evaluation, making a survey and recommendations to the organization.
 For all the above, the company provides the necessary background for the execution of
the work and an analysis of the background, in addition to all the documentation that the
company has:

Information and data extracted from the Internal Revenue Service website:

Personal data

Rut 76.000.000-9
Name/Company Name ÑINQUIL LTDA.
Address ANFIÓN MUÑOZ 51 VILLARRICA
Update
Contact e-mail VENTAS@NINQUIL.COM
Update

Tax data

Term of the
Date of incorporation Start date of activities turnaround Phone
02-01-2020 02-01-2020 No 452334455

Current legal representative(s):

Name Rut Performance As of

LUCAS LLANAO BUSTOS 12222222-0 - 02-01-2020

Capital (in thousands of pesos) 150.000

Current member(s)

Paid-in Capital to
capital be paid Date of
Name Rut Capital Profit
ThCh$ ThCh$ incorporation
ThCh$ ThCh$
LUCAS LLANAO 12222222- 75.000 0 50 50 02-01-2020
 Paid-in Capital to
capital be paid Date of
Name Rut Capital Profit
ThCh$ ThCh$ incorporation
ThCh$ ThCh$
BUSTOS 0
ISABEL CURINAO 7777777-7 75.000 0 50 50 02-01-2020
ANTILEF
Subtotals 150.000 0 100 100
Total reported capital ThCh$ ThCh$ 150.000
ThCh$ ThCh$ ThCh$ ThCh$ ThCh$
ThCh$

Current Economic Activity Code Tax category Affects VAT As of

MACHINERY FOR AGRICULTURE 451001 1 YES 02-01-2020
General description of activity indicated by Commercialization of agricultural machinery.
the taxpayer

Segment SGPM Segment Description

OFFICE: VILLARRICA
SII office for face-to-face procedures
CAMILO HENRIQUEZ 225, VILLARRICA

Based on the information available from this Service,

Authorized to pay Form 29 until the 20th
this month you can file and pay your monthly taxes
of this month online:
online until the 20th of this month.

Features

Description Start date

MEDIUM-SIZED COMPANY 02-01-2020
ELECTRONIC BILLER 02-01-2020
OBLIGATED TO ELECTRONIC INVOICING 02-01-2020
TAXPAYER UNDER THE GENERAL REGIME (ART. 14 A OF THE LIR) 02-01-2020
Statement of Changes in Financial Position through December 31, 2020:
 In the information presented it is observed that the company ÑINQUIL LTDA, is dedicated
to the marketing of agricultural machinery, which was incorporated on January 02, 2020, whose
headquarters is located in OFFICE: Villarrica Camilo Henriquez 225, Villarrica, is a medium-sized
company has two partners Lucas Llanao Bustos and Isabel Curinao Antilef who contributed 50% of
the capital which is valued at $150.The legal representative of the company is Mr. Lucas Llanao
Bustos, who is requesting advice or an audit of the financial statements to be submitted to a
foreign company.

It is also noted that the Financial Statements for the year ended December 31, 2020 do not
have a qualified opinion and were prepared based on international accounting and financial
reporting standards.

AUDIT PLANNING

Company: ÑINQUIL LTDA

Project: Financial Statement Audit

Start date: October 28, 2021

Expiration Date: November 25, 2021

SCOPE OF THE AUDIT

The audit to the company "ÑINQUIL LTDA.", begins on October 28, 2021, once the proposal is
approved and the respective contract is signed, it will have a duration of five (05) weeks,
distributed as follows:

WEEKS
PHASE ACTIVITIES
1 2 3 4 5

PLANNING Preliminary Planning

Specific Planning

EXECUTION IQ assessment
 Risk Measurement

Application of Audit Procedures and

Techniques

REPORT Communication of Results

FOLLOW UP Follow-up

The period to be audited to the company "ÑINQUIL LTDA.", will be from January 01 to December
31, 2020.

AUDIT OBJECTIVES

Determine whether the financial statements present fairly their figures and issue an opinion.

Verify the correct recording of accounts and that they are supported by valid documents.

Determine the use of forms, tax calculations, labor settlements, among others, and that they have
been properly performed.

Assess whether the accounting records have been kept in accordance with legal and ethical
standards.

To evaluate the background information provided in the Value Added Tax area considering the
results of the Financial Statements Audit.

Audit the sales ledger, purchase ledger, fee ledger and remuneration ledger in accordance with
the regulations in force DL 825.

Evaluate the development of the Form.

Evaluate the Net Taxable Income considering the adjustments of the Audit of Financial Statements
in accordance with current regulations.

Evaluate the Tax Equity and its reasonableness.

Evaluate Business Records.

Conduct an audit of the taxpayer's affidavits.

Prepare a proposal of the taxpayer's Form No. 22.

Perform an evaluation of the different areas and items of the company.

Perform a survey of the exposed risks

Elaborate a Risk Matrix.

Make recommendations on the risks identified by relevance.

Deliver the final audit report

FOCUS

The audit to be carried out is focused on complying with the activities indicated in the following
table, in each of the phases that make up the process, until the respective recommendations can
be issued in order to collaborate with the improvement in the processes and internal control of
the company "ÑINQUIL LTDA",

PHASE ACTIVITIES

PLANNING Preliminary Planning

Specific Planning

EXECUTION IQ assessment

Risk Measurement

Application of Audit Procedures and Techniques

REPORT Communication of Results

FOLLOW UP Follow-up

PRELIMINARY PLANNING
 A. Visit the facilities of ÑINQUIL LTDA.
B. Interview with Mr. Lucas Llanao Bustos, General Manager of the company.
C. Interview with the company's accountant to learn about account management, accounting
systems, tax compliance.
D. Company Organizational Chart Request
E. Review of the 2020 Financial Statements.
F. Verify if the company has an Accounting Manual.

SPECIFIC PLANNING

A. Review of Financial Statements

B. Recalculate the accounts of:
 Inventory
 Property, Plant and Equipment
 Variation in the change in exchange rates
 Investments in subsidiaries (Consolidated and separate financial statements)
 Impairment of Asset Value
 Provisions, Contingent liabilities
 Intangible Assets
 Financial Instruments
C. To evaluate the background information provided in the Value Added Tax area considering
the results of the Financial Statements Audit.
D. Audit the sales ledger, purchase ledger, fee ledger and remuneration ledger in accordance
with the regulations in force DL 825.
E. Evaluate the development of the Form.
F. Evaluate the Net Taxable Income considering the adjustments of the Audit of Financial
Statements in accordance with current regulations.
G. Evaluate the Tax Equity and its reasonableness.
H. Evaluate Business Records.
I. Conduct an audit of the taxpayer's affidavits.
J. Prepare a proposal of the taxpayer's Form No. 22.
K. Perform an evaluation of the different areas and items of the company.
L. Perform a survey of the exposed risks
M. Elaborate a Risk Matrix.
 N. Make recommendations on the risks identified by relevance.
O. Deliver the final audit report

LETTER OF INTRODUCTION

Mr. Lucas Llanao Bustos General Manager

General Manager ÑINQUIL LTDA.
Present.

We hereby inform you of the beginning of the audit of the Financial Statements of the company
that you worthily manage upon request made by you, since the financial information will be
presented to a foreign company with which you plan to become a partner.

______________________
Audit Team
For the development of the Integral Audit, the following background information is provided:
 Statement of Financial Position IFRS
 Statement of Income by IFRS function
 Balance Sheet
 Journal
 Book Bank
 Sales Ledger (full year)
 Purchase Ledger (full year)
 Remuneration Book (full year)
 Fee Book (full year)
 Stock Register
 Fixed Assets Chart
 Tax Analysis Chart
 Net Taxable Income.
 Tax Equity.
 DDJJ F1926.
 DDJJ F1948.
 Determination of RAI.
 Registration of Business Income.
 Fixed Assets Tax Table.
 Company's complete Form 22 with boxes.
 Form 22 from the member.
 Auxiliary books for Value Added Tax.

Background for the Risk Management area:

Risk Management Control surveys were conducted in the Accounting Department, this area is
composed of a person, which is a graduate of the Audit career, the latter has tried to establish
a procedure for the functions of this department, but has encountered many difficulties in
establishing procedures to improve internal processes, this is due to the fact that the owners
mention that the company has been in business for a very short time.The latter has tried to
establish a procedure for the functions of this department, but has found many difficulties in
establishing procedures to improve internal processes, this is due to the fact that the owners
mention that the company has been in business for a very short time and that it is not
necessary to do so, the business works the same and the pre-established functions are carried
out. There is also an external accountant, who has one year of experience in the accounting
field and graduated from a professional institute, but does not have much experience in the
tax area due to the Tax Modernization. Another observation is that the external accountant
does not fully apply the International Financial Reporting Standard because he considers it not
very applicable to the type of business that the company develops and mentions that the tax
part is much more relevant.
Another observation of the audit team is the weakness detected that there is no clear
communication policy from top management to the company's collaborators, in relation to
what is stated in their:

VISION

To be leaders in sales of agricultural machinery in the Araucanía region.

MISSION

To be the main Chilean company in the sales of agricultural machinery, oriented to respect the
environment and renewable energies with excellent after-sales service.

VALUES AND PRINCIPLES

Corporate values will focus on:

- Internal and external customer satisfaction.
- Total Quality.
- Respect.
- Deliver environmentally friendly machinery.
- People.

It was also detected in the information gathering that there is no induction and constant
training policy for the personnel; no budget is allocated for this concept because it is not a
priority for the Administration due to the reduced staffing of the organization, which is due to
the advice of the accounting advisor based on the reduced time of existence of the
organization.This is due to the advice of the accounting advisor, which is based on the reduced
time of existence of the organization.

SALES DEPARTMENT

According to what was observed and the results of the application of the interview audit
technique, the following areas are involved in this Sales and Marketing department.

Delivery Logistics Area:

Of the orders that are received, there are only difficulties in delivery to the field due to the
lack of a mobile crane incorporated to the truck, which hinders coordination and correct
delivery within the committed deadlines, affecting the quality of the service and the company's
reputation.

After Sales Service:

In this area, it is observed that the personnel do not have adequate training to provide quality
service, which is detrimental to the satisfaction and loyalty of internal and external customers.
During the Pandemic period from April to September, there were no personnel dedicated to
this service; it was performed by the owners.

In the Sales, Delivery Logistics and Post-Sales areas, personnel do not have adequate training
in the handling of the computer system that is directly related to the Sales Module, which is an
ERP in the cloud. Lack of communication and coordination between these areas.

Human Resources Area:

The only thing was that due to the Covid pandemic, the company decided not to renew the
labor contracts in March, and the proportional vacations were paid in cash in March, as
required by current labor regulations.

In addition, the partners work effectively in the company occupying different functions and
positions due to the lack of human resources and the sanitary circumstances that our country
is going through. Some of the functions they perform do not have the necessary
competencies.

5.- Information Technology Area:

It is observed that the server capacity is adequate and correct, what was detected is that the
Internet connection is of low quality, it is recommended to change the plan or company for a
better service.
The web page www.ninquil.cl was reviewed and found to be outdated.
Once the audit has been presented, we proceed to review the financial statements presented.

PRESENTATION OF FINANCIAL STATEMENTS

Pasivos
Pasivos cor ientes
Otros pasivos financieros, cor ientes
Cuentas comerciales y otras cuentas por pagar, cor ientes
Estado de Resultados Por Función
Estado de resultados
Ganancia (pérdida)
Ingresos de actividades ordinarias

Explanatory Notes to the Financial Statements:

Banco Santander

This account corresponds to the balances of money held in bank checking accounts; no
observations were found in the bank reconciliation. The only thing that is left as a record is
that on December 31, a sale was made to AXE SPA with dispatch guide and payment in cash,
because it is a national holiday, the member has the amount for deposit in January 2021.

Customers

No random sampling of customers was carried out through the circularization technique of the
most significant debtors, since the company's policy is to collect in cash, by means of a
transfer.

Inventories

The stock cards were validated without any observations, the only thing that called our
attention was that they did not apply the Net Realizable Value in accordance with the IAS 2
financial regulations (see values in the Stock Card). For tax purposes, the accountant did not
apply the inventory replacement cost due to the high turnover of the realizable assets.

Investments Associated Companies

This account represents an investment made in July 2020, in which 5% of Chuy Limitada was
acquired.

Property, Plant and Equipment

The following is a detail of property, plant and equipment:

Taxable Fixed Assets Schedule

Suppliers

A circularization was made to the main suppliers of the company of national origin, no further
response was obtained from them, but it was detected that a document had been paid on
12/20/2020 in cash for a value of $ 3,986,500 for the December 15 event held by the company
to its workers for the end of the year, this payment was made by one of the partners in cash.
All other electronic tax documents are validated without exceptions.
 Provision for income tax

Corresponds to the following provisions made through IAS 37 or IAS 12:

Administrative expenses

The expenses were randomly verified and are correctly recognized with their respective
backups. In addition, upon verifying the company's general expenses, there is a report of
expenses incurred abroad in the month of December that are not directly related to the visit
made by Mr. Lucas Llanao to Germany; they are unidentifiable expenses associated with the
partner's personal expenses in the amount of Ps. 1,450,500). Also in March 2020, workers
were dismissed; there is no information on severance payments.

Dividends Received

Corresponds to a profit received from the associated company with a first category tax rate of
27% with the right to refund and with restitution.

Business Registers
Recalculate the affected accounts in accordance with the application of current regulations,
taking into account IAS 2, IAS 16, IAS 27, IAS 21, IAS 36, IAS 37, IAS 38 and IAS 39.

The inventory account is not subject to inventory replacement cost due to the high
turnover of existing merchandise, and it is understood that the nature of the company does
not imply a very significant stock in warehouses.

The value of property, plant and equipment is as follows:

 Acquisition Value: 49.000.000

 Depreciation for the year 3,666,667
 Net Value 45,333,334

Fixed Assets Affected

 Pickup Single Cab 12.000.000

 IAS adjustment (historical cost) 1,464,848
 Market value 9,335,152

Current value:
  Acquisition Value: 49.000.000
 Depreciation for the year 3,666,667
 IAS adjustment 1,464,848
 Net Value 43,868,486

WORKING PAPERS

For Fixed Assets (Property, Plant and Equipment)

Prepare the summary report ________________

Verify and calculate balances _________________

Confirm balances _________________

Analyze old items _________________

Analyze supporting documents ______________

Inventories

Prepare the summary report ________________

Conduct physical inventory _______________

Perform the inventory cut _________________

Review count and valuation _______________

Review the cost of production _______________

Verify goods on consignment __________

Investments
Prepare the summary report _________________

Analyze the type of investments and their risk ___________

Perform interest calculations ___________

Check market value _______________

For expenses

Verify the authorizations to incur the expenses _____

Perform a comparison by period, for sales and expenses related to each other ______.

Analyze the classification of expense accounts _________

Review selected expense accounts, to verify if they are normal __________

Verify that items that are capitalizable are not considered as expenditures __________

Review, in particular, major items of expenditure __________

Determine if all expenses are accounted for _______.

Check the distribution of expenses _____________

Materiality of Financial Statements

 Pasivos
Pasivos cor ientes
Otros pasivos financieros, cor ientes
Cuentas comerciales y otras cuentas por pagar, cor ientes
This calculation is made by means of horizontal analysis, taking into account that the most
important account of the assets are in current assets, the most significant being inventories with a
percentage of 49.43%, followed by the Property, Plant and Equipment account with 14.96%, which
belongs to fixed assets.
 Estado de Resultados Por Función
Estado de resultados
Ganancia (pérdida)
Ingresos de actividades ordinarias

In the case of the materiality of the Income Statement, it can be determined that the cost
of sales represents 60.65% of sales.

In terms of the materiality of the items, the following result is obtained

Auditor's
Base Range
judgment
Income Before Taxes 5% - 10% 6,00%
Operating income 0,5% a 1% 0,75%
Operating margin 1% a 2% 1,50%
Heritage 1% - 5% 3,00%
Total assets 0,25% - 0,50% 0,35%

Estado de Resultado
 DETERMINAR LA MATERIA
Selección del Componente Pr
Ingresos Antes de Impuestos
Materialidad Planeada Ingresos de Explotación
This result shows the most significant accounts for the audit.
Balance General al 31.12.2020 Monto

Efectivo y Equivalentes al Efectivo 32,217,42

Otros activos no financieros, corrientes 35,000,00

Proposal of the findings found through accounting entries.

The first finding is a cash sale made on December 31, 2020, which was not recorded during the
business period, for which the accounting records are proposed.

Box 14.000.000
Sales 11.764.406
Tax Debit 2.235.594
GLOSA: registration of cash sale to AXE SPA
-2-
Bank 14.000.000
Box 14.000.000
GLOSS: deposit record for sale to AXE SPA

The partner's payment to the supplier must be recorded

Supplier 3.986.500
Partner 3.986.500
GLOSS: vendor payment record
-2-
Partner 3.986.500
Bank 3.986.500
GLOSS: payment record to partner for vendor
payment

Present value of fixed assets

 Acquisition Value 49.000.000
Depreciation for the year 3.666.667
NIC Adjustment 1.464.848
Net Present Value 43.868.486

Audit the sales ledger, purchase ledger, fee ledger and remuneration ledger in accordance with
the regulations in force DL 825.

The audit of the sales ledger revealed the following findings:

- The amount of sales corresponds to $245,600,000.00 but a sales discount for prompt
payment is made to the company Araucaria for $2,400,000.00; therefore, the final amount
for sales corresponds to $243,200,00.00.
- There is a sale made on 12/31/2020, which was collected in cash paid in full, for a net
value of $ 14,000,000 customer AXE SpA Rut 96.780.600-0.
- When comparing this information with the daily book, there is no record nor was it
declared as a sale in the month of December 2020 and therefore not in the year 2020.

Total sales for the year 245.600.000 0 46.664.000 292.264.000

Prompt payment
discount 2.400.000 456.000 2.856.000
TOTAL 243.200.000 46.208.000 289.408.000

In other words, the correct month record would be

REGISTRO
Evaluate the development of the Form.

Regarding the preparation of the form, all the amounts are correct, but the sale made on
12/31/2020, which was not reflected, has an impact.

This has no impact on the cancellation of the tax for the month because the surplus carried
forward by the company is high; however, this amount would be affected by applying the
respective correction.

That is, without recording the sale as of 12/31/2020, this amount reflects $19,762,409, while
deducting the realized sale decreases by $17,558,409, the difference is $2,204,000.

Income Tax Audit.

Objective: Continuing with the Tax Audit, the Management of tax burden and application of
Income Tax according to DL 824 and its circulars is evaluated.

Instructions:

Evaluate the Net Taxable Income considering the adjustments of the Audit of Financial Statements
in accordance with current regulations.
 Total deducciones
(=) Renta Líquida Imponible antes de rebaja por

(-) Deducción incentivo al ahorro art. 14 letra E)

Evaluate the Tax Equity and its reasonableness.

A comparison of the amounts considered for the calculation of the Tax Equity shows
differences in the amounts corresponding to Suppliers and Taxes payable, as follows
 Menos INTO:
CTA.PARTICULAR SOCIOs
Activo depurado (Capital efectivo)
In other words, there is a difference of 3,796,406.

Evaluate Business Records.

This difference also affects the corporate records, which are as follows
 Determinación registro RAI al 01.01.202

(+) Capital propio tributario al 31.12.2019 .

Therefore, the taxable income for the year increases by 3,796,406, i.e. the same difference as the
Tax Equity for 2021.

Conduct an audit of the taxpayer's affidavits.

Upon review of the taxpayer's F1948 tax returns, no errors or omissions were found.

In the F22 statement it was found that there is a difference in IDPC of 2,732,560 and therefore the
amount of the rebate is increased by 737,791. being this same amount the incremental tax
payment.

Prepare a proposal of the taxpayer's Form No. 22.

The proposal is attached in the following Excel file

Conduct an evaluation of the different areas and areas of the company and a survey of the
exposed risks.
 Significant Transactions Subprocesses Risks
Accounting Operations Registration Omission of Operations
Internal control Disorder in the activities.
Segregation of Duties Repetition of activities
Strategic Management Relationship of activities with the Commission of unnecessary
(Communications) Company's Mission, Vision, Values activities
and Principles Little sense of belonging
Human Resources Recruitment of Personnel Inadequate hiring
Payroll Incorrect payments
Termination of contracts with Non-compliance with labor laws
personnel and regulations
Staff Training
Poor execution of activities
Sales Revenues Sales Order Processing Bad Registration
Billing and returns on sales
After-sales service Lack of knowledge of income
Customer dissatisfaction
Inventory Inventory Management Merchandise Deterioration
Acquisition of Inventory
(merchandise)
Sales and Shipping
Computing WEB Page Little social network approach
Internet connection

CUANTIFICACIÓN DEL RIESGO

5
Casi certeza 1 2 3 4
Probable 4 1 2 3 4
 Elaborate a Risk Matrix.

Descripción de Riesgos
Tipo de riesgo
Específicos
Make recommendations on the risks identified by relevance.
The most relevant risk is found in the inadequate recording of sales, which as we have seen in the other
audits have a high impact on the other operations of the company such as the recording of daily operations,
which provide the necessary information for the preparation of financial statements and tax returns, which
although it is not a voluntary omission, it is an inadequate control of the processes.
In the following order is the termination of the labor relationship that occurred due to an
unprecedented and unplanned situation such as the pandemic that caused the mandatory closure of
many companies, which generated low sales, so the company had to dispense with several workers,
leaving many activities to the owners, who performed some activities without adequate expertise,
generating another risk such as the lack of segregation of duties. The company had to do without
several workers, leaving many activities to the owners, who performed some activities without the
appropriate expertise, generating another risk such as the lack of segregation of duties. In this
regard, the preparation and training of all company personnel at all levels is recommended.
In reference to the communication channels, first of all, owners should be made aware that the
size of the company is not relevant to establish management controls in which communication
guidelines are established through which employees have adequate information on the performance
of their functions related to the Company's Mission, Vision, Values and Principles.In reference to
communication channels, firstly, owners should be made aware that the size of the company is not
relevant to establish management controls in which communication guidelines are established
through which employees have adequate information on the performance of their functions related
to the Company's Mission, Vision, Values and Principles.
On the other hand, it is found that another risk is the training and education of personnel, which
should not only be directed to the collaborators but to all personnel as mentioned in the previous
paragraph, thus training the personnel will ensure an adequate use of the physical, human,
technological and financial resources available to the company.
The recommendation regarding inventory management is to automate the recording and control
of inventories in order to streamline activities, as well as to evaluate the logistics of delivery of the
merchandise, for which consideration should be given to hiring adequate transportation equipment
for the transfer of the goods.
In relation to the IT area, it is recommended to hire a better internet service to have a better
connection as well as the activation of the Company's web page in view of the technological changes
that the world is going through, this with the intention of entering the world of internet sales, in
which merchandise, services and offers that the company can offer can be shown, increasing its
competitiveness.This is with the intention of entering the world of Internet sales, in which the
merchandise, services and offers that the company can offer can be shown, thus increasing
competitiveness.
Final Audit Report

The company ÑINQUIL LTDA was audited and it was determined that it is a taxpayer under the General
Regime of Article 14 letter A, related to income tax compliance, as well as the current regulation DL 825
regarding sales; Once the audit of the Financial Statements was carried out, in which the materiality of the
figures in them was evaluated to establish the items to be audited, and the substantive tests of validation of
closing balances were applied to establish the reasonableness of the company's financial statements.

In this sense, we proceeded to evaluate the materiality of the Financial Statements by means of
arithmetic calculations that showed that the most significant accounts of the assets correspond to
inventories and property, plant and equipment, with a low percentage of debts, this result is logical due to
the nature of the company, which is responsible for the purchase and sale of agricultural equipment.

Regarding tax compliance, it can be said that the results of the aforementioned tests did not
reveal situations in the transactions and documentation examined that are considered non-
compliances during the year ended December 2020 and these do not significantly affect the financial
statements, in relation to the following obligations established in the tax regulations in force:

- Preservation of the Company's accounting records in accordance with the provisions of current
legislation;
- Conformity of the financial statements and of the information recorded in the Income Tax and Value
Added Tax returns with the accounting records kept by the company.
- Except for the sale made on December 31, 2020 in cash that was not reflected in the journal, this in
turn generated changes in the financial statements and returns, but since the company has a credit
balance it did not affect the final amounts of the return, i.e., the credit balance is still maintained
because the amount of the sale is not significant.
- Income Tax and Value Added Tax returns that appear as balances payable by the Company in its tax
returns.
Compliance with the applicable regulations regarding the Internal Tax Regime for the
determination, declaration and payment of Income Tax and Value Added Tax.

The Company's compliance with the aforementioned obligations, as well as the criteria for the
application of tax regulations, are the responsibility of its management, which are the responsibility
of its legal representative.

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 This audit was carried out with the purpose of expressing an opinion and issuing an audit opinion
according to the results, in accordance with the financial regulations of IFRS FULL, as well as on tax
compliance, according to the provisions of the current regulations DL 825 and in accordance with DL
824 and its circulars, in which the tax burden management and the application of income tax are
evaluated.The audit was carried out with the purpose of expressing an opinion and issuing an audit
opinion according to the results, in accordance with the financial regulations of IFRS FULL, as well as
on tax compliance, according to the provisions of the current regulation DL 825 and in accordance
with DL 824 and its circulars in which the tax burden management and application of income tax are
evaluated.

On the other hand, a risk management audit was carried out at ÑINQUIL LTDA, in which the following areas
were determined

 Accounting Area

 SALES DEPARTMENT

 Delivery Logistics Area:

 After Sales Service:

 Human Resources Area:

 Information Technology Area:

In which a series of risks to which the company is exposed were detected, which were measured
through the following scheme

CUANTIFICACIÓN DEL RIESGO

Casi certeza 5 1 2 3 4
Probable 4 1 2 3 4
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 After preparing the risk matrix, it can be determined that the Company in general has a low
level of risk exposure, which can be corrected in the course of the activities, as can be seen in the risk
map.

Thus, in order to continue and improve the company's performance, it is necessary to follow
the recommendations made in the first section to avoid falling into inadequate performance.

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 Bibliographic References
Domínguez A., M.L. & Joya S., Y. P (2017) Manual De Auditoría Financiera A Los Estados Financieros Bajo Niif
Para Empresas Pymes De Calzado En La Ciudad De Bucaramanga. [PDF file] Retrieved from
https://repository.ucc.edu.co/bitstream/20.500.12494/1742/1/MANUAL%20DE
%20AUDITORÍA%20FINANCIERA%20A%20LOS%20ESTADOS%20FINANCIEROS%20BAJO
%20NIIF%20PARA%20EMPRESAS%20PYMES%20DE%20CALZADO.pdf
Diaz, A. (2015).audit working papers: practical example. [Web site] Retrieved from
https://www.gestiopolis.com/el-trabajo-de-campo-en-auditoria-papeles-de-trabajo-un-caso-
practico/

López F., K. N. (2019) Professional Sufficiency Examination Tax Audit. Universidad Nacional de la Amazonía
Peruana "UNAP" [PDF file] [Archivo PDF] Retrieved from
https://repositorio.unapiquitos.edu.pe/bitstream/handle/20.500.12737/5768/
Keydi_examen_titulo_2019.pdf?sequence=4&isAllowed=y

Internal Revenue Service (2020) CIRCULAR No. 58 OF SEPTEMBER 21, 2000

SUBJECT : AUDIT PROCEDURE. [Retrieved from
https://repositorio.unapiquitos.edu.pe/bitstream/handle/20.500.12737/5768/
Keydi_examen_titulo_2019.pdf?sequence=4&isAllowed=y

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