DEBTORS, ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER

RECEIVABLES

K-1 Lead Schedule

K-2 Matters for the Attention of Manager

K-3 Debtors

K-3.1 Audit Programme

K-3.2 Notes and queries
K-3.x Schedules and workings

K-4 Advances, deposits, prepayments and other receivables

K-4.1 Audit Programme

K-4.2 Notes and queries
K-4.x Schedules and workings

K-5 Advance Tax

K-5.1 Audit Programme

K-5.2 Notes and queries
K-5.x Schedules and workings

K-6 Summary of Circularization of Debtors

K-7 List of Schedules

Riaz Ahmad, Saqib, Gohar & Company
(Chartered Accountants)
K-3
Client: Certification Services Pakistan (Pvt) Ltd Prepared by: Azeem
Year ended: June 30, 2019 Date : Nov 12,2019
Audit Program: Trade and Other Receivable Reviewed by: _________

Audit
S. Referenc
Audit Procedures Assertion Performed by
No. e
Addressed
1 Obtain the schedule of
receivables/trial balance (age
analysis) and perform the
following:
(a)Test the casting of schedule Completeness
(b)Trace the totals to the general
ledger and trace opening balances
from prior year’s working papers
Make a selection of
customers balances and
perform the following:-
(a)Circularize confirmations of
selected parties.
(b) Compare replies to requests. Ownership
Trace reconciling items, if any, to the
2 supporting documents. Existence

(c)In case of non-replies check Valuation

subsequent clearance.

(d) Inquire into significant disputed

balances.
Obtain a schedule of
allowance for doubtful debts
showing beginning and
ending balances write-offs, Valuation
3 recoveries and bad debts
expense. Trace ending
balances to general ledger.
Ensure the recoverability of
Completeness
the debtors considered good.
Trace ending balances from
4 Completeness
general ledger.
Determine that methods used
by management to estimate
Presentation /
5 doubtful debts are
Disclosure
appropriate and applied
consistently.
Riaz Ahmad, Saqib, Gohar & Company
(Chartered Accountants)
K-3
Client: Certification Services Pakistan (Pvt) Ltd Prepared by: Azeem
Year ended: June 30, 2019 Date : Nov 12,2019
Audit Program: Trade and Other Receivable Reviewed by: _________

Audit
S. Referenc
Audit Procedures Assertion Performed by
No. e
Addressed
Calculate provision for
6 doubtful debts based on age- Valuation
analysis of debtors.
Riaz Ahmad, Saqib, Gohar & Company
(Chartered Accountants)
K-3
Client: Certification Services Pakistan (Pvt) Ltd Prepared by: Azeem
Year ended: June 30, 2019 Date : Nov 12,2019
Audit Program: Trade and Other Receivable Reviewed by: _________

Audit
S. Referenc
Audit Procedures Assertion Performed by
No. e
Addressed
Review documents,
supporting correspondence
7 and authorization for Valuation
selected write-offs during the
year.
Select transactions from
sales invoices and customer
returns notes pertaining to
Completeness
8 some days prior to and after
/ Occurrence
year-end and ensure that
they have been recorded in
the correct period.
Determine that disclosures
have been made in
accordance with the Presentation /
9
requirements of Companies Disclosure
Ordinance, 1984 and relevant
accounting pronouncements.
Riaz Ahmad, Saqib, Gohar & Company K-4.2
(Chartered Accountants)

Client:_________ Prepared by: _________

Year ended: June 30, 2014 Date :
Audit Trade deposits, short-term Reviewed by: _________
prepayments, loans, advances
and other receivables.

Audit
S.
Audit Procedures Assertion Performed by Reference
No.
Addressed
Obtain a detailed scheduled showing Existence /
separately trade deposits, Rights &
1
prepayments, loans & advances and Obligations
other receivable
Inquire about the nature of trade
deposits. Corroborate movements in
2 Completeness
trade deposits with supporting
documents.
Review short-term prepayments
analytically. Inquire as to the reason
3 for significant changes in prepaid Existence
expense balances since the prior
year.
For short-term loans and advances to
staff, review company’s policies for
disbursement and recoveries thereof,
and ensure the same with supporting Completeness
4
documents. Verify on a test basis / Ownership
deductions from advances to staff
from their respective payroll
register.
Document the nature of other
receivables, check the movement
5 with supporting documents and Valuation
compute the amount of provision for
doubtful receivables, if required.
Determine that accounting policies
6 for recording the above items are Measurement
appropriate and applied consistently.
Determine that disclosures have
been made in accordance with the
Presentation /
7 requirements of Companies
Disclosures
Ordinance, 1984 and relevant
accounting pronouncements.
Riaz Ahmad, Saqib, Gohar & Company
(Chartered Accountants)
K-4.1.1
Client:_________ Prepared by: _________
Year ended: June 30, 2014 Date :
Audit Program: Long Term Deposits Reviewed by: _________

Audit
S. Performed
Audit Procedures Assertion Reference
No. by
Ascertain the nature of Addressed
deposits by inquiry or by
1 Completeness
reviewing prior year’s working
papers.
Examine the supporting Obligation /
2 documents of deposits e. g. Existence /
contracts with customers etc. Valuation
Circularize confirmations to
Obligation /
selected parties. Match replies
3 Existence /
with the amounts shown in
Valuation
general ledger.
Check that the amounts of
deposits have been credited by
the client in a separate bank
4 Completeness
account as required by Sec 226
of the Companies Ordinance,
1984.
Determine that disclosures
have been made in accordance
with the requirements of Presentation /
5
Companies Ordinance, 1984 Disclosures
and relevant accounting
pronouncements.
Riaz Ahmad, Saqib, Gohar & Company
(Chartered Accountants)
K-4.1.2
Client:_________ Prepared by: _________
Year ended: June 30, 2014 Date :
Audit Program: Deferred Cost Reviewed by: _________

Audit
S. Performed
Audit Procedures Assertion Reference
No. by
Addressed
Ascertain the nature of each
item of deferred costs by
1 inquiry or reviewing Existence
information contained in prior
year’s working papers.
Obtain schedule of deferred
cost showing beginning and
ending balances and
2 movements during the year, Occurrence
as well as accumulated
amortization at the beginning
and at the end of the period.
Check casting and calculation
3 of schedule and agree Valuation
balances with general ledger.
Ensure that costs that should
have been expensed in current
4 Completeness
or past periods are not being
carried forward.
Determine that client’s
accounting policies and
5 procedures for amortization Measurement
are appropriate and applied
consistently.
Determine that no such events
have occurred that might lead
6 to a reduction in the period Existence
over which the costs are being
written off.
Re-compute charge of
amortization for the year and
7 agree the amount with profit Completeness
and loss account and general
ledger.
Determine that disclosures
have been made in
accordance with the Presentation /
8
requirements of Companies Disclosures
Ordinance, 1984 and relevant
accounting pronouncements.