Works Operations Audit Guidelines (Federal) 22-03-2010

8/11/2019 Works Operations Audit Guidelines (Federal) 22-03-2010

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DEPARTMENT OFTHE AUDITOR - GENERAL OF

PAKISTAN

GUIDELINES FOR THE AUDIT OF WORKS OPERATIONS

TO BE USED BY

THE DIRECTORATE GENERAL OF AUDIT (WORKS) FEDERAL


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Table of Conen!

PREFACE 1

1. INTRODUCTION TO AUDIT GUIDELINES2

1.1 Purpose of the Guie!i"es #1.# Guii"$ Pri"%ip!es #1.& Auitors' Respo"si(i!it) #1.* Pr+%ti%+! Too!s &1., o"ti"uous Ipro/ee"t &1.0 Usi"$ the St+"+r Auit or2i"$ P+pers &1.3 The A%%ou"t+(i!it) )%!e *

2. OVERVIEW OF THE DIRECTORATE GENERAL OF AUDIT (WORKS) FEDERAL 6

#.1. O/er/ie4 of the O5%e 0#.# 6urisi%tio" 3#.& Or$+"o$r+ of DG7 Auit or2s 8Feer+!9 :

3. SCOPE OF AUDIT 9

&.1 T)pes of Auits ;&.# De For PF-II 10*.3 List of Auit+(!e Lo%+tio"s > For PF-III 10*.: List of ?+"2 A%%ou"ts > For PF-I@ 13*.; List of Authorie Si$"+tories > For PF-@ 13*.1= EBter"+! F+%tors > For PF-@I 13*.11 A%%ou"ti"$ Re%ors +" A%%ou"ti"$ S)ste - For PF-@II 13*.1# Ke) o"t+%ts > For PF-@III 1;*.1& Si$"i


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,.3 Auit p!+""i"$ eor+"u #3,.: Meor+"u o" post-p!+""i"$ %h+"$es #3,.; Iport+"t +tes #3,.1= Tour pro$r+e #3,.11 I"for+tio" reueste fro e"tit) o5%i+!s #3,.1# M+teri+!it) +ssesse"t for #:

,.1& EBpe%te +$$re$+te error +" p!+""e pre%isio" for #:,.1* Auit ris2 +ssesse"t for #:,.1, I"here"t ris2 +ssesse"t for #:,.10 I"ter"+! %o"tro! uestio""+ire - %o"tro!s for o/er+!! e"/iro"e"t #;,.13 I"ter"+! %o"tro! uestio""+ire > $e"er+! %oputer %o"tro!s #;,.1: I"ter"+! %o"tro! uestio""+ire > +pp!i%+tio" %o"tro!s#;,.1; o"tro! ris2 +ssesse"t fors &=,.#= A"+!)ti%+! pro%eures +ssur+"%e for &=,.#1 Sour%e of +uit +ssur+"%e for &=,.## List of +pp!i%+(!e !+4s +" re$u!+tio"s&1,.#& S+p!e se!e%tio" %he%2!ist &1,.#* Hi$h /+!ue ite se!e%tio" for &&

,.#, Ke) ite se!e%tio" for &&,.#0 S+p!e sii"$ for tests of i"ter"+! %o"tro! &*,.#3 S+p!e sii"$ for su(st+"ti/e tests of et+i!s&*,.#: he%2!ist of +%%ou"ti"$ esti+tes to (e re/ie4e &*,.#; Poi"ts for +tte"tio" +t "eBt +uit &*,.&= Auit p!+""i"$ %he%2!ist &*,.&1 e"tr+!!) Le Auit &,

6. AUDIT E!ECUTION PHASE 36

0.1 I"trou%tio" &00.# The Auit Te+'s Respo"si(i!it) i" EBe%utio" Ph+se &00.& Fors +" S%heu!es for Auit EBe%utio" Ph+se &3

0.* Su+r) of A"+!)ti%+! Re/ie4 Pro%eures Perfore &30., Det+i!s of A"+!)ti%+! Re/ie4 Pro%eures Perfore &30.0 op!ete I"ter"+! o"tro! uestio""+ires &:0.3 I"ter"+! o"tro! De/i+tio"s For &:0.: I"ter"+! o"tro! De/i+tio"s Su+r) &:0.; op!i+"%e Su+r) &;0.1= Su(st+"ti/e Tests of A%%ou"ti"$ Esti+tes &;0.11 Errors i" A%%ou"ti"$ Esti+tes &;0.1# Su(st+"ti/e Test S+p!e Su+r) for e+%h Auit Pro$r+e &;0.1& Su(st+"ti/e Test of Hi$h @+!ueKe) Ites > Su+r) *=0.1* Det+i!s of Errors i" S+p!es7 Hi$h @+!ue Ites +" Ke) Ites *=0.1, EBit I"ter/ie4s *1

0.10 Auit Pro$r+es *10.13 Auit Pro$r+e - Ep!o)ee Re!+te EBpe"ses *&0.1: Auit Pro$r+e - Pro%uree"t *30.1; Auit Pro$r+e - P!+""i"$ +" o"tr+%t A4+ri"$ ,=0.#= Auit Pro$r+e - o"tr+%t Ip!ee"t+tio"EBe%utio" ,&0.#1 Auit Pro$r+e - o"tr+%t op!etio" ,:0.#1 Auit Pro$r+e - or2 h+r$e Est+(!ishe"t 0=0.## Auit Pro$r+e - Dis(ursee"t 8or2er e!f+re Fu"9 01

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0.#& Auit Pro$r+e - Ge"er+tio" of Fu"s 8or2ers e!f+re Fu"9 0#0.#* Auit Pro$r+e - Re/e"ue 8or2ers e!f+re ?o+r9 0*0.#, Auit Pro$r+e > Re/e"ue 8N+tio"+! Hi$h4+) Authorit)9 0,0.#0 Auit Pro$r+e - Re/e"ue 8+pit+! De/e!ope"t Authorit)9 030.#3 Auit Pro$r+e - M+or Assets 3=0.#: Auit Pro$r+e - I"/este"t 3*

0.#; Auit Pro$r+e - A%%ou"ti"$ +" Fi"+"%i+! M+"+$ee"t 3:

". AUDIT EVALUATION AND REPORTING PHASE #$

3.1 I"trou%tio" :=3.# The Auit Te+'s Respo"si(i!it) :13.& Do%ue"t+tio" i" E/+!u+tio" +" Reporti"$ Ph+se :&3.* I"ter"+! o"tro! e+2"esses > Ip+%t A"+!)sis :*3., A"+!)ti%+! Pro%eure Thresho!s :*3.0 E/+!u+tio" of A"+!)ti%+! Pro%eures :,3.3 E/+!u+tio" of I"ter"+! o"tro! De/i+tio"s :,3.: Su(st+"ti/e Tests E/+!u+tio" > Proe%t+(!e Errors fro S+p!e :,3.; Su(st+"ti/e Tests E/+!u+tio" > No"-Proe%t+(!e Errors :,

3.1= Su(st+"ti/e Tests E/+!u+tio" > Su+r) :,3.11 A%hie/e Le/e! of Assur+"%e For :03.1# Error i" E+%h opo"e"t:03.1& O/er+!! Error i" Fi"+"%i+! St+tee"ts :03.1* op!i+"%e-ith-Authorit) @io!+tio"s :03.1, he%2!ist of M+"+$ee"t Represe"t+tio" Letter :33.10 S+p!e M+"+$ee"t Represe"t+tio" Letter :33.13 Auit op!etio" he%2!ist :33.1: Meor+"u Supporti"$ Si$"+ture :33.1; Auitor's Opi"io" :33.#= Fo!!o4 up o"ti"uit) S%heu!e ::3.#1 u+!it) Assur+"%e he%2!ist :;

3.## e"tr+!!) Le Auit :;

8. KEY TASKS AND RESPONSIBILTIES 9$

#$% In&o'"on ;=#$* A!!"+n"n+ Role! an' Re!,on!"b"l""e! ;=:.& Ke) T+s2s +" Respo"si(i!ities Per+"e"t Fi!e ;1#$-Ke. Ta!/! an' Re!,on!"b"l""e!0 A'" Plann"n+ P1a!e ;##$2 Ke. Ta!/! an' Re!,on!"b"l""e!0 A'" E3e"on P1a!e ;*#$4 Ke. Ta!/! an' Re!,on!"b"l""e!0 A'" E5ala"on 6 Re,o&"n+ P1a!e ;,:.3 Ke) T+s2s +" Respo"si(i!ities Auit u+!it) Assur+"%e ;3

APPENDI! % A 9#

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PREFACE

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an' !b9" a 8&"en !++e!"on o 1e A'" Pol". an' S,e"al Seo&! (AP6SS) W"n+

"n 1e DAGP$

1.0 Usi"$ the St+"+r Auit or2i"$ P+pers

T1e a'" ,&oe!! +ene&all. follo8! a !an'a&' A'" C.le o9,&"!"n+ 1e follo8"n+

,1a!e!0

Gene&al a'" ,lann"n+ Dea"le' a"5". an' &e!o&e ,lann"n+

F"el'8o&/

E5ala"on

Re,o&"n+

Follo8


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T1e!e ,1a!e! a&e o99on o all .,e! of a'"$ An o5e&5"e8 of 1e A'" C.le a! a

81ole "! ,&o5"'e' "n C1a,e& 4 of FA7$ A''""onal 'ea"l "! ,&o5"'e' "n C1a,e&!

1&o+1 %-$

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,1a!e! "n a !&&e' 9anne&= an' a&e ,&e!ene' "n 1e fo& !e! of 8o&/"n+ ,a,e&!$ Oneo9,lee' an' !,,le9ene' 8"1 a''""onal "nfo&9a"on +a1e&e' '&"n+ 1e o&!e of

a'"= ea1 of 1e!e !e! of 8o&/"n+ ,a,e&! &e,&e!en! a f"le 1a 'o9en! a'"

a"5""e! an' !,,o&! 1e onl!"on! &ea1e'$

T1e f"le! 1a &e,&e!en 1e 8o&/ 'one "n ea1 of 1e ,1a!e! of a'" a&e0

Pe&9anen f"le=

Plann"n+ f"le=

Wo&/"n+ Pa,e& f"le= 'o9en"n+ 1e e3e"on ,1a!e= an' 1e

E5ala"on an' Re,o&"n+ f"le

I "! &eo99en'e' 1a 1e ele&on" 5e&!"on! of fo&9! +"5en "n 1e A'" Wo&/"n+Pa,e&! K" a&e !e' '&"n+ 1e on' of a'"$ T1e a'"o& "! &e9"n'e' of 1e

"9,o&ane of /ee,"n+ ba/


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%$ Ea1 .ea&= 7"n"!&. of F"nane &ee"5e! b'+e e!"9ae! f&o9 +o5e&n9en

a+en"e!$

*$ Ba!e' on 1e &e!o&e! a5a"lable an' ,&"o&""e! of 1e +o5e&n9en= 1e annalb'+e "! ,&e,a&e'$

?$ T1e Pa&l"a9en a,,&o5e! 1e b'+e$

-$ P&"n",al Aon"n+ Off"e&! (PAO!) !an"on 1e e3,en'"&e$2$ Con&olle& Gene&al of Aon! "! &e!,on!"ble fo& 1e ,&e,a&a"on of Annal

F"nan"al Sae9en!$ T1"! a!/ "! ao9,l"!1e' 1&o+1 1e Aonan

Gene&al Pa/"!an Re5ene! (AGPR)= 81o 1a! 1e ,&"9a&. &e!,on!"b"l". fo&'"!b&!e9en!= /ee,"n+ a &eo&' of &an!a"on! an' 1e ,&e,a&a"on of

Annal F"nan"al Sae9en! of 1e Fe'e&al= P&o5"n"al an' D"!&"

+o5e&n9en! fo& en&al"e' aon"n+ en""e!$ In 1e a!e of !elf"&e9en$

Non


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De,a&9en of 1e A'"o& Gene&al of Pa/"!an$ T1e a'"o&= 1e&efo&e= nee'! o /ee,

1"!1e& /no8le'+e , o 'ae "n a'""n+ !an'a&'!$ T1e a'"o& !1ol' al!o on' an

e3a9"na"on of 1e aa1e' e&9! an' on'""on! o en!&e o9,l"ane 8"1 a,,l"ablela8! an' &e+la"on!$

3..2 A5+* 0 E87+*5:T1e e3,en'"&e "n&&e' on 8o 9a@o& .,e! of a"5""e! "n 1e a'"ee 'e,a&9en! a&e0

Ca,"al 8o&/!J an'

O,e&a"on!= 9a"nenane an' &e,a"& 8o&/!$

T1e!e a"5""e! a&e 9l"fa&"o! "n na&e an' 8"'el. '"!,e&!e' a&o!! 1e on&.$ A

!"+n"f"an 1allen+e fo& 1e a'" ea9 "! o 'e"'e on 1e a,,&o,&"ae an' @'""o! !e

of a'" effo& an' &e!o&e!$

In 'e"'"n+ 81a a,"al'e5elo,9en ,&o@e! o a'"= 1e a'" ea9 !1ol' be+"n 8"1

a l"! of ,&o@e! (+"5en "n 1e 9on1l. aon! 9a"na"ne' b. &e!,e"5e '"5"!"on!)81"1 a&e e"1e& on+o"n+ o& 1a5e &ea1e' o9,le"on "n 1e ,e&"o' be"n+ a'"e'$ T1e

!a9,le of ,&o@e! o be a'"e' 8"ll 1en be !elee' f&o9 1"! l"!$ T1e a'" ea9 8"ll

"nl'e 1o!e ,&o@e!0

on 81"1 !b!an"al e3,en'"&e 1a! been "n&&e'=

81"1 a&e lon+e!= a! a,,l"able= o "'en"f. ano9al"e!0

F&o9 one .ea& o 1e ne3 a ,a&"la& loa"on!J o&

B. o9,a&"n+ !"9"la& fa"l""e! a&o!! 1e on&.= allo8"n+ fo& !1 fao&! a! 1e

!"e of 1e fa"l". (b. alla"n+ 1e o!!!>a&e foo of fa"l". !,aeJ o& b.

o!e9,lo.ee 8o&/"n+ a 1e fa"l".)$

T1"! 8"ll ,&o5"'e a ba!"! fo& !ele"n+ loa"on! 81"1 !1ol' be !b@e o !&"n.$ T1e

a'"o& 9a. al!o ,e&fo&9 &an'o9 !a9,l"n+ of &an!a"on!$

A !on' /no8le'+e of o,e&a"on! 8"ll 1el, 1e a'"o& "'en"f. ,oen"al ,&oble9 a&ea!$

Fo& e3a9,le= "f 9one. 8a! !,en "n 1e ,&e5"o! .ea& on f"3"n+ a ,&oble9 an' 1en "n 1e

&&en .ea&= 1e&e "! f&1e& e3,en'"&e on 1e !a9e 8o&/= 1e a'"o& 9a. 'e"'e o"n5e!"+ae &ea!on! fo& f&1e& e3,en'"&e$

%?


19/125

3..3 A5+* 0 A--*-

T1e a'"o&! !1ol' 1e/ 1a 1e a'"ee 'e,a&9en! 1a5e 9a"na"ne' ,&o,e& &eo&'! of

,&1a!e an' !ale of a!!e!= an' 1a all &le! an' &e+la"on! a&e be"n+ follo8e' "n 1"!&e!,e$ T1e a'"o&! !1ol' al!o 1e/ 1a 1e a'"ee 'e,a&9en! 1a5e 9a"na"ne' a

F"3e' A!!e Re+"!e& 81"1 9! &efle 1e &&en !a! of a!!e!$ 7o&eo5e&= 1e

a'"o&! !1ol' ob!e&5e 1a nee!!a&. !e,! 1a5e been a/en b. 1e 'e,a&9en! fo& 1e!afe. of a!!e!$

T1e Ne8 Aon"n+ 7o'el (NA7) ,&o5"'e! fo& 1e aon"n+ of a!!e!$ T1e a'"o&

nee'! o n'e&!an' 1e le5el of "9,le9ena"on of NA7 an' 5e&"f. 1e fa"& an' &e,&e!ena"on of 1o!e a!!e! "n ao&'ane 8"1 1e ,ol". +"5en "n NA7$

%-


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4. PERMANENT FILE OF AUDITEE

DEPARTMENTS

*.1 I"trou%tio"A'" ob@e"5e! an' ,lan! a&e 'e5elo,e' ba!e' on an n'e&!an'"n+ of 1e en".!

o,e&a"on!$ T1e a'"o& nee'! o 1a5e a 'ea"le' /no8le'+e of 1o!e a!,e! of 1e en".1a &elae o a'"J 1e a'"o& !1ol' 1a5e o+n"ane abo 1e o1e& a&ea!$

A! "! na9e "9,l"e!= 1e Pe&9anen F"le (PF) "! !e' o olle "nfo&9a"on abo 1een". 1a 8"ll be !efl no @! fo& 1e &&en a'"= b al!o fo& f&e a'"! of 1e

!a9e .,e fo& 1e !a9e en".$ Fo& e3a9,le0 "nfo&9a"on abo 1e en".! !"e an'

b!"ne!! 1el,! "n a!!e!!"n+ 9ae&"al".J n'e&!an'"n+ 1e en".! o,e&a"on! an 1el, o'ee&9"ne 81a o9,onen! o a'"J an'= /no8"n+ 1e .,e! of &an!a"on! ene&e' "no

b. 1e en". 1el,! o a!!e!! "n1e&en &"!/! o 1e en".$ T1"! "nfo&9a"on 8"ll be fa"&l.on!"!en an' &ele5an fo& a lea! a fe8 .ea&! a'"!$

E5en 1o+1 1e "nfo&9a"on on 1e Pe&9anen F"le "! e3,ee' o be !efl a&o!! 9o&e

1an one a'" ,e&"o'!= 1e a'" ea9 !1ol' 5al"'ae 1e a&a. of 1a "nfo&9a"on a

1e "9e of ne3 a'" an' ,'ae 1e Pe&9anen F"le 81e&e !"+n"f"an 1an+e! 1a5eo&&e'$

T1e Pe&9anen F"le "nl'e! "nfo&9a"on 1a 8"ll be of on"n"n+ "9,o&ane o a'"$T1"! 9a. "nl'e0

Co,"e! of &ele5an Go5e&n9en le+"!la"on= a,,l"able f"nan"al &le!= la8!&e+la"on!= +"'el"ne! an' o1e& &le! affe"n+ 1e o,e&a"on! of an en".$

O&+an"a"on 1a&!= 'ea"l! of /e. ona! an' loa"on! of o,e&a"on$

Role of en".= "!"on an' 7"!!"on Sae9en! an' 1e 9o! &een b!"ne!! ,lan

o& 1a&e& of 1e en".$

Co,"e! of 1e e!"9ae!$

Co,"e! of lon+


21/125

Pol""e! an' P&oe'&e! 7anal! 9a. be "n 1e Pe&9anen F"le= "f 1e. a&e b&"ef o&=

ale&na"5el.= a o,. !1ol' be "n 1e a'"o&! boo/a!e o& f"l"n+ ab"ne$

Note: Where the supporting documentation is voluminous, the auditor may decide to

include only a reference to the title of the documentation and its physical location rather

than keeping the whole document in the Permanent File.

*.# The Auit Te+'s Respo"si(i!it)

T1e a'" ea9 "! &e!,on!"ble fo& +a1e&"n+ 1e "nfo&9a"on &e>"&e' o be , "n 1e !e of

8o&/"n+ ,a,e&! a!!o"ae' 8"1 1e Pe&9anen F"le$ T1e!e a&e l"!e' "n 1e ne3 !e"on$

T1e ,&e,a&a"on of Pe&9anen F"le fo& 1e f"&! "9e 8"ll be a "9een a'"! of 1e !a9e .,e fo& 1e !a9e en".= 1e a'" ea9 !"9,l. nee'! oonf"&9 1a 1e "nfo&9a"on "! !"ll &ele5an= an' o ,'ae 1e Pe&9anen F"le a ,lann"n+

!a+e 81e&e nee!!a&.$ T1e 'ae! on 81"1 ,'ae! o&&e' !1ol' be &eo&'e' on 1e

U,'ae Con&ol S1ee (Fo&9 PF) ,&o5"'e'$

7e9be&! of 1e a'" ea9 !1ol' be fa9"l"a& 8"1 1e "nfo&9a"on "n 1e Pe&9anen F"le

a! " "! &e>"&e' o 1a5e an n'e&!an'"n+ of 1e en".! b!"ne!! "n o&'e& o 1e/ 1a an

effe"5e an' eff""en a'" "! on'e'$

I nee'! o be 1"+1l"+1e' 1a 1e a'" !&ae+. an' 9e1o'olo+. &eo99en'e' n'e&

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a'" !1ol' en!&e 1a 1e 5a&"o! !e,! &eo99en'e' "n 1e!e G"'el"ne! an'

&e!,e"5e fo&9! 1a5e been o9,leel. follo8e' "n all &e!,e!$

*.& Do%ue"t+tio" i" Per+"e"t Fi!e

T"le! of 5a&"o! fo&9! !,e"f"e' "n 1e A'" Wo&/"n+ Pa,e&! K" a&e l"!e' belo80

U,'ae Con&ol S1ee (PF)

Sa! of 1e En". (PF


22/125

S"+n"f"an A'" A&ea! (PF For PF-III

T1e a'"o& !1ol' 'o9en 1e a''&e!!e! of all loa"on! "nl'"n+0

Hea'>a&e&J

F"el' Off"e! (e$+$ 8o&/! '"5"!"on)J

P&o@e !"e! o& o1e& o,e&a"onal loa"on! 1a olle= &eo&'= ,&oe!! an' &e,o&

1e f"nan"al "nfo&9a"on of a'"ee a"5""e!J an'=

%


23/125

Loa"on! 81e&e a!!e! a&e loae' an' 1e"& e3"!ene an be 1e/e' b. 1e

a'"o&$

*.: List of ?+"2 A%%ou"ts > For PF-I@

T1e a'"o& !1ol' l"! na9e!= a''&e!!e! an' aon n9be&! of all ban/ aon!9a"na"ne' "n 1e na9e of 1e en".$

*.; List of Authorie Si$"+tories > For PF-@

T1e a'"o& !1ol' l"! 1e na9e! of ,e&!onnel 8"1 a1o&". o e&"f.= a,,&o5e an'a1o&"!e 1e olle"on= &eo&'"n+= ,&oe!!"n+ an' &e,o&"n+ of 1e f"nan"al "nfo&9a"on

of 1e en". "n ao&'ane 8"1 1e 'ele+a"on of ,o8e&! of 1e &ele5an 'e,a&9en$

*.1= EBter"+! F+%tors > For PF-@I

T1e a'"o& !1ol' l"! e3e&nal fao&! 1a 9a. 1a5e an "9,a on 1e ,e&fo&9ane of

1e o,e&a"onal a"5""e! of an a'"ee$ T1e a'"o& !1ol' !e ,&ofe!!"onal @'+9en o'e"'e 81a 1e!e fao&! a&e$ T1e. 9a. "nl'e0

Eono9" &en'! an' on'""on! affe"n+ "n, o!!$

a&"a"on "n b'+e!$

T"9"n+ of ,&o@e o9,le"on an' a&&. o5e& "no !b!e>en f"nan"al .ea&!$

Loal "ne&5en"on! o& e5en! 1a 9"+1 1a5e an "9,a on ,&o@e ,&o+&e!!$

Gene&al f"nan"al "n'"ao&! an' &en'!$

*.11 A%%ou"ti"$ Re%ors +" A%%ou"ti"$ S)ste -

For PF-@II

T1"! fo&9 1a! 8o &e>"&e9en!0

a$ L"! 1e aon"n+ &eo&'! 9a"na"ne' b. 1e a'"ee 'e,a&9en! fo& 1e

olle"on= &eo&'"n+= ,&oe!!"n+ an' &e,o&"n+ of f"nan"al "nfo&9a"on of all 1e

fo&9a"on! a 1e Fe'e&al le5el$

b$ Do9en a b&"ef 'e!&","on of 1e aon"n+ !.!e9 (1"! 9ean!= "nl'"n+

!aff an' e>",9en= b. 81"1 an o&+an"!a"on ,&o'e! "! aon"n+

"nfo&9a"on)$

The 'a/or acco$!t!% record( 'a!ta!ed - the a$dtee de"art'e!t(

!c#$de:

Ca!1 Boo/

C1e>e Boo/

%#


24/125

o1e&!B"ll!

Con&ao&! Le'+e&

E3,en'"&e Sae9en

7on1l. Re&n

Fn'! Relea!e!

B'+e Relea!e!

T&an!fe& Re+"!e&

A'5ane Re+"!e&

E3,en'"&e Re+"!e&

So/ Re+"!e&

7ea!&e9en boo/

Dea"le' E!"9ae!

Se&". De,o!" Re+"!e&

Ine&"9 Pa.9en Ce&"f"ae!

E!ala"on Pa.9en Ce&"f"ae!

Note: !he aove list is not comprehensive" it may include other additional records to

support the nature of activities an auditee is involved in.

Acco$!t!% Ma!$a#( a!d ode(:

Gene&al F"nan"al Rle!

Fe'e&al T&ea!&. Rle!

Re5"!e' S.!e9 of F"nan"al Con&ol an' B'+e"n+

FIDIC G"'el"ne!?

WB P&o&e9en G"'el"ne!

Pa/"!an Alloa"on Rle!

E!a Co'e

FR 6 SR

Aon! Co'e

De,a&9enal"a"on S1e9e

Cen&al Pbl" Wo&/! Aon (CPWA Co'e)

Cen&al Pbl" Wo&/! De,a&9en (CPWD Co'e)

Pbl" P&o&e9en Rle!= *;;-

S1e'le of Rae!

Boo/ of S,e"f"a"on! Co9,en'"9 of Se&5"e Rle! (CSR)

Ino9e Ta3 Rle!

D&a8"n+ an' D"!b&!e9en Off"e (DDO) Han' Boo/

GP Fn' Rle! %*2

Pa/"!an En+"nee&"n+ Con"l (PEC) Rle!

?FIDIC "! a F&en1 abb&e5"a"on of MFe'e&a"on Ine&na"onale 'e! In+en"e&! Con!e"l!

%


25/125

Lan' A>"!""on A

Wo&/e&! Welfa&e Fn' O&'"nane= %%

In a''""on o 1e abo5e 9en"one' l"!= 1e follo8"n+ "! 1e l"! of 9anal! an'o'e! 81"1 a&e en". !,e"f" fo& Fe'e&al De,a&9en!0

Na"onal H"+18a. A1o&". (NHA) A

NHA 7anal

NHA Co'e

NHA San'a&' O,e&a"n+ P&oe'&e!

Ca,"al De5elo,9en A1o&". (CDA) 7anal

C"5"l A5"a"on A1o&". (CAA) O&'"nane

CAA A

CAA Wo&/! P&oe'&e

CAA P&o&e9en Re+la"on!

W1e&e 1e&e a&e ne8 a'9"n"!&a"5e ,ol""e! o& ,&oe'&e! 8"1 81"1 1e a'"ee'e,a&9en! !1ol' o9,l.= 1e a'"o&! 9! beo9e fa9"l"a& 8"1 1e9 an' en!&e 1a1e a'" "! on'e' a+a"n! 1e!e ben19a&/!$ In a''""on= 1e a'"o& !1ol' on!"'e&

81e1e& 1e ,ol""e! an' ,&oe'&e! "n fo&e a&e effe"5e a &e"nfo&"n+ +oo'

9ana+e9en ,&a"e!$ W1e&e a &le o& ,&oe'&e 'oe! no on&"be o +oo'

9ana+e9en ,&a"e!= " "! 1e @ob of 1e a'"o& o &eo99en' 1an+e! o !1 &le! an',&oe'&e!$

T1e a'" ea9 !1ol' al!o 'o9en a ,&oe!! 9a,,"n+ fo& ea1 ,&oe!! 9a"na"ne' fo&olle"n+ an' &eo&'"n+ &an!a"on!$ T1"! 8"ll 1el, 1e a'"o& "n n'e&!an'"n+ 1e

o9,le3". of on&ol !&&e an' 'o9ena"on$ T1e ,&oe!! 9a,,"n+ 8"ll 'e,en' on

1e na&e= flo8 of &an!a"on an' !"+n"f"ane of o,e&a"on!$ Fo& ,&oe!! 9a,,"n+= 1ea'" ea9 9a. anal.!e an en".! 9anal!= a,,l"able &le! an' &e+la"on!$ T1e&e a&e

8o a,,&oa1e! o ,&oe!! 9a,,"n+ na9el. F"nan"al Sae9en! a,,&oa1 (a o, 'o8n

a,,&oa1) an' &an!a"on! ba!e' a,,&oa1 (a boo9 , a,,&oa1)$ A !a9,le b!"ne!!

,&oe!! "! aa1e' "n Fo&9 PF


26/125

*.1& Si$"i


27/125

*$ E3,en'"&e!Co!!

o 7a@o& a,"al ,&o@e!

o E>",9en (5e1"le! 1ea5. on!&"on)

o Goo'! an' !e&5"e!

o U"l"a"on of "n5eno&.

o De,&e"a"ono Pa.&oll

o Pe&!onnel benef"! !1 a! Pen!"on! an' P&o5"'en Fn'!

?$ A!!e!

o F"3e' a!!e! (lan' b"l'"n+! "nf&a!&&e &oa'!= b&"'+e!)

o Ca,"al 8o&/ "n ,&o+&e!! ("5"l 8o&/!= e$)

o 7a@o& e>",9en

o C&&en a!!e! (!o&e!)

o Ca!1

-$ L"ab"l""e!

o Lon+


28/125

Non

Ae&ona"al

%$ Lea!e of lan'

*$ Co99e&"al one!!"on fo& ?


29/125

In5e!9en %$ A,,&o5al of In5e!9en De"!"on

*$ I9,le9ena"on of Go5e&n9en In!&"on!?$ P1.!"al e&"f"a"on of In5e!9en In!&9en!

-$ Reo&'"n+ of In5e!9en! "n aon"n+ &eo&'!

2$ D"!"n5e!9en 'e"!"on!

*.1* Si$"i


30/125

. AUDIT PLANNING PHASE

,.1 I"trou%tio"

Un'e& 1e e3"!"n+ +"'ane a5a"lable o 1e F"el' A'" Off"e! (FAO!)= all 1e FAO! a&e&e>"&e' o ,&e,a&e an Annal Co&,o&ae A'" Plan o5e&"n+ a'" o,e&a"on! ,e&a"n"n+

o Ce&"f"a"on A'"= Co9,l"ane 8"1 A1o&". A'" an' o1e& a'"! l"/ePe&fo&9ane A'"= S,e"al A'"= S,e"al S'"e! an' A'" of Fo&e"+n A"'e' P&o@e!$

T1"! 1a,e& ona"n! +"'ane 1a 1e a'"o& an !e o ,lan 1e"& Re+la&". A'"

81"1 "nl'e! Ce&"f"a"on A'" an' Co9,l"ane 8"1 A1o&". A'"$ T1e!e+"'el"ne! 'o no &e,lae 1e !e of ,&ofe!!"onal @'+9en$

In'"5"'al a'"! 9! be ,lanne' o en!&e 1a0

a,,&o,&"ae an' !ff""en e5"'ene "! oba"ne' o !,,o& 1e a'"o&! o,"n"onJ

1e INTOSAI A'""n+ San'a&'! a&e o9,l"e' 8"1J

onl. nee!!a&. 8o&/ "! ,e&fo&9e'$

T1e ,lann"n+ ,1a!e "n5ol5e! 1e follo8"n+0

Dee&9"n"n+ 1e o5e&all ob@e"5e! an' !o,e of a'"J

Un'e&!an' 1e en".! b!"ne!!J

A!!e!!"n+ 9ae&"al".= ,lanne' ,&e"!"on an' a'" &"!/$

A!!e!!"n+ 1e en".! !.!e9 of "ne&nal on&ol!$

Dee&9"n"n+ 1e o9,onen! b. 81"1 1e a'" 8"ll be on'e'$

Dee&9"n"n+ F"nan"al A'" an' Co9,l"ane 8"1 A1o&". A'" ob@e"5e!=an' e&&o&"&&e+la&". on'""on!

A!!e!!"n+ In1e&en R"!/! an' Con&ol R"!/!$

Dee&9"n"n+ 1e a,,&o,&"ae 9"3 of e!! of "ne&nal on&ol= anal."al ,&oe'&e!

an' !b!an"5e e!! of 'ea"l!.

* !hese steps of Planning Phase are common for oth the &ertification and &ompliancewith Authority Audits, whereas the unmarked steps relate to &ertification Audit only.

,.# The Auit Te+'s Respo"si(i!it) i" P!+""i"$ Ph+se

T1e a"5""e! ,e&fo&9e' '&"n+ 1e ,&e,a&a"on of 1e Plann"n+ F"le a&e o9,le3 an'5a&"e'$ Ea1 9e9be& of 1e a'" ea9 !1ol' 1e/ 1a 1e. 1a5e a +oo' n'e&!an'"n+of 1e a"5""e! 1a 1a5e been a!!"+ne' o 1e9$ Fo& 'ea"l!= ,lea!e &efe& o C1a,e& of

1e FA7$

Ba!e' on 1e "nfo&9a"on noe' abo5e= 1ea' of 1e off"e "! &e!,on!"ble fo& ,lann"n+ 1e

a"5""e! an' a!!o"ae' &e!o&e &e>"&e9en! "n on'"n+ a'"$ T1e A'"

*2


31/125

7ana+e9en Sof8a&e "! a 5alable ool o a,,l. o 1"! a!/$ See C1a,e& # of 1e FA7

an' 1e A'" 7ana+e9en Sof8a&e 7anal fo& a''""onal "nfo&9a"on$

I !1ol' al!o be noe' 1a 1e INTOSAI A'""n+ San'a&'! &e>"&e 1a A'"o&!

!1ol' a'e>ael. 'o9en 1e a'" e5"'ene "n 8o&/"n+ ,a,e&!= "nl'"n+ 1e ba!"!

an' e3en of ,lann"n+= 8o&/ ,e&fo&9e' an' 1e f"n'"n+! of 1e a'"$ T1e&efo&e= 1ea'" ea9 lea'e& "! &e!,on!"ble o 1e/ 1a 1e Plann"n+ F"le "! o9,lee an' ,&o5"'e!

e5"'ene of 1e ba!"! an' e3en of ,lann"n+ 8o&/ ,e&fo&9e' b. 1e a'" ea9$


FA7 ,&o5"'e fo& on"ne' >al". a!!&ane 1&o+1 all 1e ,1a!e! of a'"$ W1"le

&e5"e8"n+ 1e ,lann"n+ ,1a!e= 1e fn"ona&"e! en&!e' 8"1 1e >al". a!!&ane of

a'" !1ol' en!&e 1a 1e 5a&"o! !e,! &eo99en'e' "n 1e!e G"'el"ne! an'&e!,e"5e fo&9! 1a5e been o9,leel. follo8e' "n all &e!,e!$

T1e /e. o 9a"na"n"n+ 1e >al". of 1e ,lann"n+ ,&oe!! "!elf "! a &e5"e8 of 1e ,lan=

81"1 1e one&ne' De,. A'"o& Gene&al (DAG) !1ol' !,e&5"!e an' a,,&o5e (Ref0FA7e!"onna"&e +ene&al o9,e& on&ol!

Ine&nal on&ol >e!"onna"&e a,,l"a"on on&ol!

Con&ol &"!/ a!!e!!9en fo&9

Anal."al ,&oe'&e! a!!&ane fo&9

So&e of a'" a!!&ane fo&9

L"! of a,,l"able la8! an' &e+la"on!

Sa9,le !ele"on 1e/l"!

H"+1 5ale "e9 !ele"on fo&9 3

*4


32/125

Ke. "e9 !ele"on fo&9

Sa9,le !""n+ fo& e!! of "ne&nal on&ol

Sa9,le !""n+ fo& !b!an"5e e!! of 'ea"l!

C1e/l"! of aon"n+ e!"9ae! o be &e5"e8e'

Po"n! fo& aen"on a ne3 a'"

A'" ,lann"n+ 1e/l"!

Note: !hese forms recommended under FA+ and Audit Working Papers it essentially

meet the re-uirements of &ertification Audit. owever, some of these forms, marked withasterisks$*%, can also e used for &ompliance with Authority Audit.

T1e follo8"n+ ,a&a+&a,1! ,&o5"'e +ene&al +"'ane fo& !"n+ 1e abo5e 9en"one' fo&9!$In!&"on! fo& f"ll"n+ "n 1e!e fo&9! a&e ona"ne' "n 1e A'" Wo&/"n+ Pa,e&! K"

81"1 1e a'"o&! a&e &e>"&e' o follo8$

,.* Auit o(e%ti/es +" s%ope

T1e a'" "! on'e' o a''&e!! a ,a&"la& ob@e"5e$ Ea1 a'" 8"ll be 'e!"+ne' oa''&e!! one o& 9o&e of 1e follo8"n+ ob@e"5e!0

E3,&e!!"n+ an o,"n"on on F"nan"al Sae9en!J

E3,&e!!"n+ an o,"n"on &e+a&'"n+ o9,l"ane 8"1 &&en &le! an' &e+la"on!J

Te!"n+ o9,l"ane 8"1 a1o&". o& on&ol! on !elee' &an!a"on! 8"1 no

o,"n"on be"n+ e3,&e!!e'J an'

E5ala"n+ o,e&a"onal ,e&fo&9ane$

Note: For a comprehensive discussion of audit oectives, please see 0ection 1.2 of FA+.

T1e na&e an' !"e of 1e a'" en". 'ee&9"ne! 1e !o,e of 1e a'"= an' "! +ene&all.'ef"ne' b. 1e a'" 9an'ae$ Fo& 1e a'" of F"nan"al Sae9en!= 1a a&e &e>"&e'

n'e& Se"on of 1e A'"o&


33/125

"!!e! 1a 1e a'"o& 8an! o b&"n+ o 1e aen"on of en".! 9ana+e9en$ T1"! lee&

8"ll la&"f. 81a "! e3,ee' f&o9 a'"o&! '&"n+ 1e o&!e of a'" an' lea'! o

oo,e&a"on be8een bo1 1e ,a&"e!$

,.3 Auit p!+""i"$ eor+"u

T1e a'" ,lann"n+ 9e9o&an'9 !1ol' o9,&"!e a on"!e an' ea!. o n'e&!an'

!99a&. of "9,o&an fao&! an' 'e"!"on! 9a'e '&"n+ 1e ,lann"n+ ,1a!e$ E9,1a!"!

!1ol' be ,lae' on 1an+e! 1a 1a5e been 9a'e o 1e ,&e5"o! .ea&! ,lan$ T1e a'",lann"n+ 9e9o&an'9 !1ol' no ',l"ae all of 1e 'ea"l! !e o el!e81e&e "n 1e

,lann"n+ f"le= 1e ,e&9anen f"le o& "n 1e a'" ,&o+&a99e!$

T1e aal onen! of 1e a'" ,lann"n+ 9e9o&an'9 8"ll 'e,en' on !,e"f"

"&9!ane! of 1e a'"$ I !1ol' "nl'e an. 1an+e! "n 1e na&e of en".!

b!"ne!!= !&&e of b!"ne!!= aon"n+ ,ol""e! o& !.!e9!= "ne&nal on&ol! o&o,e&a"onal en5"&on9en 1a 8"ll affe 1e ,lanne' a'"$ I !1ol' al!o e3,la"n an'

e!abl"!1 an a'" !&ae+.= "9e able! an' o5e&all b'+e o+e1e& 8"1 an. !"+n"f"an1an+e! 9a'e f&o9 1e ,&e5"o! .ea&$

,.: Meor+"u o" post-p!+""i"$ %h+"$es

A! 1e e3e"on= e5ala"on an' &e,o&"n+ ,1a!e! of 1e a'" ,&oee'= " 9a. benee!!a&. o a9en' 1e ,lanne' !o,e of 1e a'" 8o&/$ T1"! 9a. &e!l f&o9 +a"n"n+ a

bee& n'e&!an'"n+ of 1e en".! a"5""e!= f&o9 ne3,ee' e3e&nal 'e5elo,9en!= o&

f&o9 'ee&9"n"n+ a bee& 9ean! of a1"e5"n+ 1e a'" ob@e"5e! a! 1e a'" ,&o+&e!!e!$

If 1e 1an+e! a&e !"+n"f"an= !1 a! 1e one 1a all! fo& 1e 'e5elo,9en of ne8 a'"

,&o+&a99e! o& a &e


34/125

,.11 I"for+tio" reueste fro e"tit) o5%i+!s

T1e a'" ea9 lea'e& !1ol' /ee, &a/ of "nfo&9a"on &e>e!e' f&o9 1e a'"ee!9ana+e9en= "nl'"n+ 81a "nfo&9a"on 8a! &e>e!e'= 81en " 8a! &e>"&e' o be

'el"5e&e' an' 81en " 8a! aall. &ee"5e'$ T1"! fo&9 ,&o5"'e! a !++e!e' fo&9a= b

1e a'" ea9 lea'e& 9a. 1oo!e o !e 1"! o& 1e& o8n fo&9a$

,.1# M+teri+!it) +ssesse"t for

7ae&"al". an be 'ef"ne' a! follo8!0 An e&&o& (o& 1e !9 of 1e e&&o&!) "! 9ae&"al "f1e e&&o& (o& 1e !9 of 1e e&&o&!) "! b"+ eno+1 o "nflene 1e !e&! of 1e F"nan"al

Sae9en!$

A!!e!!"n+ 9ae&"al". "! an "9,o&an a!,e of 9o'e&n !.!e9!


35/125

be 1e !a9e fo& 9l",le ob@e"5e! o& o9,onen!= 1"! fo&9 an be !e' o a,&e &"!/

fo& ea1 +&o, of ob@e"5e! o& o9,onen! 1a 1e a'"o& 8"!1e! o &ea "n 1e !a9e

9anne&$

,.10 I"ter"+! %o"tro! uestio""+ire - %o"tro!s for

o/er+!! e"/iro"e"t

T1"! fo&9 "! !e' o +"'e 1e a'"o& "n on!"'e&"n+ 1e o5e&all "ne&nal on&ol

en5"&on9en "n 1e en".$ T1e bee& 1e a,,a&en !.!e9 of "ne&nal on&ol= 1e le!!

'ea"le' 1e/"n+ of "n'"5"'al &an!a"on! 8"ll be nee!!a&.$ Ine&nal on&ol! a&e'"!!!e' a len+1 "n !e"on $- of FA7$

T1e "ne&nal on&ol >e!"onna"&e ,&o5"'e! 9an. >e!"on! fo& 1e a'"o&! &e5"e8$ T1e

a'"o& !1ol' 'e"'e 81a >e!"on! a&e &ele5an o 1e ,&e!en a'" an' "! f&ee o a''f&1e& >e!"on! 81e&e5e& &e>"&e'$

Al!o= 1e a'"o& !1ol' be a8a&e of 1e 8o&/ a&&"e' o b. 1e Ine&nal an' e3e&nala'"o&! 81e&e a,,l"able$ Rel"ane on 1e"& 8o&/ an onl. be ,lae' 81en 1e a'"o&

a!!&e! 1"91e&!elf 1a 1e"& 8o&/ 1a! been a&&"e' o ao&'"n+ o 1e &ele5an a'""n+

!an'a&'!$ T1e a'"o& !1ol' 9a/e effo&! o oba"n 1e o,"e! of 1e a'" &e,o&!=9ana+e9en lee&! an' o1e& &ele5an ob!e&5a"on! 9a'e b. 1e "ne&nal an' e3e&nal

a'"o&!$ W1e&e5e& 1e a'"o& !e! 1e 8o&/ of 1e "ne&nal an' e3e&nal a'"o&!= "

!1ol' be 'l. a/no8le'+e' "n 1"! &eo&'$

T1e a'"o& 9! be 1one! "n 1e a!!e!!9en of "ne&nal on&ol! o,e&a"n+ "n o5e&all

en5"&on9en= +ene&al o9,e& en5"&on9en an' !,e"f" o9,e& ba!e' f"nan"al

a,,l"a"on!$ If 1e on&ol! a&e 8ea/ o& none!"on! a&e &ele5an o 1e ,&e!en a'" an' "! f&ee o a''

f&1e& >e!"on! 81e&e5e& &e>"&e'$

?;


36/125

,.1: I"ter"+! %o"tro! uestio""+ire > +pp!i%+tio"

%o"tro!s

T1"! fo&9 "! !e' o +"'e 1e a'"o& "n on!"'e&"n+ 1e "ne&nal on&ol! o,e&a"n+ "n

!,e"f" o9,e&e!"onna"&e ,&o5"'e! 9an. >e!"on! fo& 1e a'"o&! &e5"e8$ T1e

a'"o& !1ol' 'e"'e 81a >e!"on! a&e &ele5an o 1e ,&e!en a'" an' "! f&ee o a''f&1e& >e!"on! 81e&e5e& &e>"&e'$

,.1; o"tro! ris2 +ssesse"t fors

T1"! fo&9 "! !e' b. 1e a'"o& o !99a&"!e 1e a!!e!!9en of &"!/ "n 1e +ene&al

on&ol en5"&on9en= 1e o5e&all o9,e& en5"&on9en an' "n !,e"f" o9,e&

a,,l"a"on! (f&o9 1e ,&e5"o! 1&ee fo&9!)$

T1e &"!/! "'en"f"e' 1&o+1 1e a!!e!!9en of on&ol! 9a. "9,a '"ffe&en o9,onen!'"ffe&enl.= !o 1e a'"o& !1ol' on!"'e& on&ol &"!/ !e,a&ael. fo& ea1 o9,onen (o&

+&o, of !"9"la& o9,onen!)$ T1e a!!e!!9en of &"!/ "! 5e&. 91 a 9ae& of

,&ofe!!"onal @'+9en$ In +ene&al= '&"n+ 1e f"&! fe8 .ea&! follo8"n+ 1e "n&o'"on of

ne8 a'""n+ ,a&a'"+9= " "! !++e!e' 1a all on&ol &"!/! a&e a!!9e' o be 1"+1 nle!!1e&e "! !ff""en e5"'ene o !,,o& lo8e&"n+ 1a a!!e!!9en$

,.#= A"+!)ti%+! pro%eures +ssur+"%e for

T1e a'" ea9 lea'e& !e! 1"! fo&9 o 'o9en 1e anal."al ,&oe'&e(!) 1a a&e,lanne' fo& ea1 o9,onen$ T1e .,e of ,&oe'&e !elee' "! "9,o&an a! '"ffe&en,&oe'&e! ("$e$ o9,a&a"5e= ,&e'""5e= !a"!"al o& o5e&all 5e&"f"a"on ,&oe'&e!)

,&o5"'e a '"ffe&en le5el of a!!&ane 81en " o9e! o ,lann"n+ !b!an"5e e!! of

'ea"l!$

Dea"le' "n!&"on! a&e ,&o5"'e' 8"1 1e fo&9$

Note: A detailed discussion on analytical procedures is provided in the Financial Audit+anual, section 1.4 and Appendi( 5.

,.#1 Sour%e of +uit +ssur+"%e for

In on'"n+ a'"= 1e a'" ea9 "! loo/"n+ fo& !o&e! of a!!&ane 1a 1e F"nan"al

Sae9en! ,&o5"'e a &e an' fa"& 5"e8$ One !o&e of a!!&ane "! a 'ea"le' &e5"e8 of"n'"5"'al &an!a"on! (!b!an"5e e!! of 'ea"l)$ Ho8e5e&= 1"! "! 5e&. "9e

on!9"n+= !o 1e a'" ea9 loo/! fo& o1e& !o&e! of a!!&ane 1a 9"+1 enable 1e9

o &e'e 1e a9on of !b!an"5e e!! of 'ea"l$ T1e a'" &"!/ 9o'el ,&o5"'e! ana&"19e" 9e1o' of !"n+ 1e a!!e!!9en! of "n1e&en &"!/= on&ol &"!/= anal."al

?%


37/125

,&oe'&e! an' o5e&all a'" &"!/ o a&&"5e a 1e le5el of a!!&ane 1a "! &e>"&e' f&o9

!b!an"5e e!! of 'ea"l$

T1"! fo&9 lea'! 1e a'"o& 1&o+1 1"! a&"19e" 9o'el$ A 'ea"le' '"!!!"on of 1e

&"!/ alla"on "! ,&e!ene' on 1e &e5e&!e of 1"! fo&9$

,.## List of +pp!i%+(!e !+4s +" re$u!+tio"s

A 9a@o& o9,onen of a Re+la&". A'" "! 1e 5e&"f"a"on 1a 1e en". 1a! o9,l"e'8"1 a,,l"able la8! an' &e+la"on!$ T1e a'" ea9 !1ol' enl"! all a,,l"able la8! an'

&e+la"on! on 1"! fo&9 fo& 1e/"n+ 1e en".! o9,l"ane 8"1 la8! an' &e+la"on!$

,.#& S+p!e se!e%tio" %he%2!ist

In ,&e,a&a"on fo& ,e&fo&9"n+ 1e !b!an"5e e!! of 'ea"l= 1e a'" ea9 9! !ele!a9,le! of "e9! o be e!e'$ T1"! fo&9 "! !e' o &eo&' 1e "'en". of ea1 !a9,le an'

1e 'ae on 81"1 " 8a! ollee'$ CAAT! !1ol' be !e' (81e&e a,,l"able) o !elean' &eo&' !a9,le! a/en '&"n+ a'"$

T1e follo8"n+ !e"on l"!! !o9e of 1e !a9,l"n+ e1n">e! 81"1 an be !e' bo1 fo&

1e Ce&"f"a"on A'" an' fo& 1e Co9,l"ane 8"1 A1o&". A'"$ U!e of 7onea&.

Un" Sa9,l"n+ "! &eo99en'e' fo& Ce&"f"a"on A'" an' 81en 1e a'"o&! !eale&na"5e !a9,l"n+ e1n">e! '&"n+ Ce&"f"a"on A'"= 1e. 8"ll be &e>"&e' o

e3e&"!e ,&ofe!!"onal @'+9en$

S;a onl!"on abo 1e ,o,la"on a! a 81ole$ A! !1= " "! "9,o&an 1a 1e!a9,le be &e,&e!ena"5e of 1e ,o,la"on f&o9 81"1 " 8a! !elee'$

S;


38/125

Noe 1a 1e onl. '"ffe&ene be8een !a"!"al !a9,l"n+ an' non

!a9,l"n+ "! 1e9e1o' of !ele"n+ !a9,le "e9!$ Plann"n+ &e>"&e9en! an' 1e

e5ala"on ,&oe!! &e9a"n1e !a9e$

M07*;: U7+* S;


39/125

CAAT! 9a. offe& a fo&1 9e1o' !&a"f"e' &an'o9 !a9,l"n+$ U!"n+ 1"!

a,,&oa1= 1e ,o,la"on "! f"&! !&a"f"e' ba!e' on 9onea&. &an+e!= .,e of

e3,en'"&e= e$= an' 1en a &an'o9 !a9,le "! '&a8n f&o9 ea1 &an+e$ T1"! ol'be !e'= fo& e3a9,le= o 8e"+1 an a&"be !a9,le o 1e la&+e& 'olla& "e9! o&

!,e"f" e3,en'"&e .,e!= o& o en!&e 1a a lea! one !a9,le "e9 "! '&a8n

f&o9 ea1 e3,en'"&e .,e$

S*+7 */ -;"&e'$

Fo& 'ea"le' +"'ane ,lea!e &efe& o A,,en'"3 B of FA7$

,.#* Hi$h /+!ue ite se!e%tio" for

In a''""on o !ele"n+ a &an'o9 !a9,le fo& e!"n+= 1e a'"o& !1ol' al!o 9a/e !&e1a 1e "e9! of ,a&"la& 1"+1 5ale a&e e!e'= a! an. e&&o&! "n 1e!e "e9! ol' 1a5e a

9ae&"al "9,a on 1e a&a. of 1e F"nan"al Sae9en! a! a 81ole$ T1e&efo&e= 1e

a'"o& 8"ll "'en"f. 1e 1"+1 5ale "e9! 81"1 8"ll &ee"5e "n'"5"'al aen"on (an' 8"ll&e9o5e 1e9 f&o9 1e ,o,la"on of "e9! f&o9 81"1 1e !a9,le! a&e !elee')$

T1e a'"o& 8"ll "'en"f. 1e 1"+1 5ale "e9! on 1"! fo&9 an' 8"ll &o!!


40/125

T1e&efo&e= 1e a'"o& 8"ll "'en"f. 1e /e. "e9! 81"1 nee' "n'"5"'al aen"on an' 8"ll

&e9o5e 1e9 f&o9 1e ,o,la"on of "e9! f&o9 81"1 1e !a9,le! a&e !elee'$

T1e a'"o& 8"ll "'en"f. 1e /e. "e9! on 1"! fo&9 an' 8"ll &o!!en Wo&/"n+ Pa,e& f"le!= 1ea'"o& 9a. o9e a&o!! "e9! "n 1e &&en .ea& 1a !1ol' be follo8e' , "n 1e ne3

.ea&! a'"$ T1e!e 9a. be aon"n+ e!"9ae! 1a 8e&e on"n+en ,on e5en! 1a1a5e no .e 1a,,ene' o& "e9! 1a a&e e3,ee' o !1o8 , "n 1e follo8"n+ .ea&!

aon! o& o1e& 9ae&! !,e"f" o 1e a'" a 1an'$

U!e 1"! fo&9 o &eo&' 1e!e "e9! !o 1a 1e. an be &e5"e8e' "n ne3 .ea&! a'"

,lann"n+ ,1a!e$

?2


41/125

,.&= Auit p!+""i"$ %he%2!ist

T1"! fo&9 ,&e!en! a 1e/l"! of 1e 9a@o& a"5""e! 1a !1ol' 1a5e been o9,lee' b.1e a'" ea9 lea'e& o 9ee 1"! &e!,on!"b"l". fo& a'e>ael. ,lann"n+ a'" an' fo&

'o9en"n+ 1e ba!"! of 1e ,lan!$ C1a,e& # of FA7 ,&o5"'e! 'ea"l &e+a&'"n+ 1e

a'"o&! ,lann"n+ &e!,on!"b"l".$

T1"! fo&9 "! al!o a /e. o9,onen of 1e DAGP! >al". a!!&ane ,&oe!!= !"ne "

,&o5"'e! a 5e1"le fo& o99n"a"n+ 1e ,lann"n+ ,&oe!! o 1e DAGP 9ana+e9en !o

1e. an &e5"e8 an' a,,&o5e 1a a'e>ae ,lann"n+ 8a! o9,lee' "n &e!,e of 1ea'"$

,.&1 e"tr+!!) Le Auit

T1e!e a&e a'"! 81e&e a en&al ea9 "! &e!,on!"ble fo& 1e o5e&all ,lann"n+=

,e&fo&9ane= e5ala"on= &e,o&"n+ an' follo8 ,$ W"1 a en&all. le' a'"= 1e&e 8"ll be

a '"5"!"on of &e!,on!"b"l""e! be8een 1e en&al ea9 an' f"el' a'" ea9! of 1e !a9eD"&eo&ae o& of o1e& D"&eo&ae! on&"b"n+ o 1e en&all. le' a'"$

Pa&a 4$-$2 o 4$-$%; of FA7 +"5e! +"'ane abo a en&all. le' a'"$ T1e en&al ea9"! &e!,on!"ble fo&0

Se"n+ 1e ba!" ,lann"n+ ,a&a9ee&! (9ae&"al".= ,lanne' ,&e"!"on= a'" &"!/=

e$)J

Se"n+ "n1e&en &"!/= on&ol &"!/= o1e& !b!an"5e ,&oe'&e! &"!/ an'

!b!an"5e e! of 'ea"l! &"!/ fo& ea1 o9,onen an' ea1 !,e"f" F"nan"al

A'" ob@e"5e an' Co9,l"ane 8"1 A1o&". A'" ob@e"5e an' e&&o&

on'""onJ Dee&9"n"n+ 1e o,"99 9"3 of e!! of "ne&nal on&ol!= anal."al ,&oe'&e!

an' !b!an"5e e!! of 'ea"l! fo& ea1 o9,onen an' fo& ea1 !,e"f" F"nan"alA'" ob@e"5e an' &elae' Co9,l"ane 8"1 A1o&". A'" ob@e"5e an' e&&o&

on'""onJ

Pe&fo&9"n+ 1e o5e&all e&&o& e5ala"onJ an'

Re,o&"n+ 1e &e!l! of 1e a'"$

T1e F"el' a'" ea9! of 1e !a9e o& o1e& D"&eo&ae! a&e= "n &n= &e!,on!"ble fo&0

P&o5"'"n+ a'5"e o a!!"! 1e en&al ea9 o ,lan 1e a'"J

Re5"e8"n+ 1e 9ae&"al &ee"5e' f&o9 1e en&al ea9 o en!&e a'"

,&o+&a99e!= fo&9! an' 1e/l"!! &efle 1e o,"99 9"3 of e!! fo& 1a

,a&"la& D"&eo&ae= an' ona"n all 1e 8o&/ &e>"&e' o oba"n 1e &e>"&e'

a9on of o5e&all a!!&aneJ

Pe&fo&9"n+ 1e a'" 8o&/J an'

Re,o&"n+ 1e &e!l! of 1e 8o&/= "nl'"n+ "n'"5"'al e&&o&! an' o1e& !"+n"f"an

9ae&!= o 1e en&al ea9$

?4


42/125

T1e D"&eo&ae Gene&al A'"= Wo&/! (Fe'e&al) "! !olel. &e!,on!"ble fo& 1e Ce&"f"a"on

A'" of 1e Pa/"!an Pbl" Wo&/! De,a&9en 8"1 1e "n5ol5e9en of 1"! o1e& b&an1

off"e! an' f"el' a'" ea9!

?


43/125

6. AUDIT E!ECUTION PHASE

0.1 I"trou%tio"

T1"! 1a,e& ,&o5"'e! +"'ane fo& 1e a'"o&! 8o&/ a 1e e3e"on !a+e$ T1"! !a+e"nl'e! o9,l"ane e!"n+ (e! of on&ol!)= !b!an"5e e!"n+= olle"n+ an'

&e5"e8"n+ e5"'ene an' 9a"na"n"n+ 8o&/"n+ ,a,e&! f"le!$ I nee'! o be noe' 1a 1ea'" ,&o+&a99e! +"5en a 1e en' of 1"! 1a,e& ,&o5"'e +"'ane o 1e f"el' a'"o&!

fo& Ce&"f"a"on A'" an' Co9,l"ane 8"1 A1o&". A'"$

O5e&all a'" e3e"on +"'ane "! a5a"lable "n C1a,e& of 1e FA7$

T1e A'" Wo&/"n+ Pa,e&! K" ,&o5"'e!0

E5"'ene 1a 1e a'"o& 1a! o9,l"e' 8"1 1e DAGP a'""n+ !an'a&'!J

A ba!"! o 'ee&9"ne 1a 1e 8o&/ 'ele+ae' 1a! been ,e&fo&9e' ,&o,e&l.J

A !o&e of "nfo&9a"on fo& ,&e,a&"n+ &e,o&! an' an!8e&"n+ en>"&"e!J an'=

A!!"!ane "n ,lann"n+ an' e3e"n+ f&e a'"!$

0.# The Auit Te+'s Respo"si(i!it) i" EBe%utio"

Ph+se

T1e a'" ea9 1a! a 9a@o& &e!,on!"b"l". fo& 'o9en"n+ a'" e5"'ene "n 1e 8o&/"n+

,a,e&! "nl'"n+ 8o&/ ,e&fo&9e' an' f"n'"n+! (1e DAGP! A'""n+ San'a&'!= Pa&a

?$2$2)$

A! noe' "n FA7= 1e onen an' a&&an+e9en of 1e 8o&/"n+ ,a,e&! "! a &efle"on of an

a'"o&! ,&of""en.= e3,e&"ene an' /no8le'+e$

Se"on! $ o $%% of FA7 ,&o5"'e 'ea"l! of 1e a'"o&! &e!,on!"b"l". fo&

'o9en"n+ 1e 8o&/ ,e&fo&9e' an' !an'a&'! fo& 9a"na"n"n+ an' /ee,"n+ !o'. of

1e Wo&/"n+ Pa,e&! f"le$ Ea1 a'"o& !1ol' be fa9"l"a& 8"1 1e!e &e!,on!"b"l""e!$

T1e A'" Wo&/"n+ Pa,e&! f"le !1ol' ona"n 5a&"o! f"nan"al 'o9en! ,&o5"'e' b.

1e a'"ee 9ana+e9en= "nl'"n+0

a$ F"nan"al Sae9en!b$ T&"al balane$ C"5"l Aon

'$ A,,&o,&"a"on Aon

e$ An. "ne&


44/125

+$ In a''""on= 1e a'" ea9 !1ol' 9a"na"n 'ea"le' 9"ne! of all 1e 9ee"n+!

8"1 1e a'"ee &e,&e!ena"5e!= 81"1 !1ol' be ,lae' "n 1e A'" Wo&/"n+

Pa,e&! f"le$


FA7 ,&o5"'e fo& on"ne' >al". a!!&ane 1&o+1 all 1e ,1a!e! of a'"$ W1"le&e5"e8"n+ 1e e3e"on ,1a!e= 1e fn"ona&"e! en&!e' 8"1 1e >al". a!!&ane of

a'" !1ol' en!&e 1a 1e 5a&"o! !e,! &eo99en'e' "n 1e!e G"'el"ne! an'

&e!,e"5e fo&9! 1a5e been o9,leel. follo8e' "n all &e!,e!$

0.& Fors +" S%heu!es for Auit EBe%utio" Ph+se

T"le! of 5a&"o! fo&9! !,e"f"e' "n 1e A'" Wo&/"n+ Pa,e&! K" a&e l"!e' belo80

S99a&. of Anal."al Re5"e8 P&oe'&e! Pe&fo&9e'

Dea"l! of Anal."al Re5"e8 P&oe'&e! Pe&fo&9e'

Co9,lee' Ine&nal Con&ol e!"onna"&e!

Ine&nal Con&ol De5"a"on! Fo&9

Ine&nal Con&ol De5"a"on! S99a&.

Co9,l"ane S99a&.

Sb!an"5e Te!! of Aon"n+ E!"9ae!

E&&o&! "n Aon"n+ E!"9ae!

Sb!an"5e Te! Sa9,le S99a&. fo& ea1 A'" P&o+&a99e

Sb!an"5e Te! of H"+1 aleKe. Ie9! S99a&.

Dea"l! of E&&o&! "n Sa9,le!= H"+1 ale Ie9! an' Ke. Ie9!

E3" Ine&5"e8!

Note: !hese forms recommended under FA+ and Audit Working Papers it essentially

meet the re-uirements of &ertification Audit. owever, some of these forms, marked with

asterisks$*%, can also e used for &ompliance with Authority Audit.

T1e follo8"n+ ,a&a+&a,1! ,&o5"'e +ene&al +"'ane fo& !"n+ 1e abo5e 9en"one' fo&9!$

In!&"on! fo& f"ll"n+ "n 1e!e fo&9! a&e ona"ne' "n 1e A'" Wo&/"n+ Pa,e&! K"

81"1 1e a'"o&! a&e &e>"&e' o follo8$

0.* Su+r) of A"+!)ti%+! Re/ie4 Pro%eures

Perfore

T1"! fo&9 "! !e' o !99a&"e 1e anal."al ,&oe'&e! 1a 8e&e ,e&fo&9e'$ T1e

a'"o& !1ol' noe 1e ,&oe'&e! 1a 8e&e ,e&fo&9e' an' &o!!


45/125

0., Det+i!s of A"+!)ti%+! Re/ie4 Pro%eures

Perfore

Dea"l! of ea1 anal."al &e5"e8 ,&oe'&e on'e' b. 1e a'" ea9= "nl'"n+ .,e

of e!= 'aa !e'= alla"on! ,e&fo&9e'= &e!l! an' a'"o&! onl!"on= a&e'o9ene' on 1"! fo&9$

0.0 op!ete I"ter"+! o"tro! uestio""+iresT1e a'"o& 9! e! 1e on&ol en5"&on9en o 'ee&9"ne 81e1e& 1e !.!e9 of "ne&nalon&ol! on 81"1 1e a'" ea9 "nen'! o &el. "! aall. 8o&/"n+ effe"5el.$ T1"! "!

'one b. follo8"n+ 1e 'ea"le' +"'ane ,&o5"'e' "n 1e Ine&nal Con&ol e!"onna"&e!

fo& '"ffe&en a!,e! of 1e a'"$ T1e a'"o& 8"ll !ele 1e IC! 1a a&e o be !e' "n1"! a'" an' "/ 1e9 off on 1e 1e/l"! ,&o5"'e'$ T1e a'"o& 'oe! no 1a5e o a,,l.

all 1e ,o!!"ble IC! "n e5e&. a'"$

T1e /e. IC! o be on!"'e&e' fo& 8o&/! a'" a&e a! follo8!0

E9,lo.ee &elae' e3,en'"&e

Goo'! an' Se&5"e!

Con&a"n+

P&o@e Co!! an' Pe&fo&9ane

Ree",!

Ca!1

A!!e! 7ana+e9en

So&e! an' In5eno&.

Lan' an' B"l'"n+! 7ana+e9en

B'+e"n+ an' E3,en'"&e Con&ol!

G&an "n A"'

Note: 'etailed guidance for filling in the #&9s is provided in the Audit Working Papers

it under the section 5(ecution file.

0.3 I"ter"+! o"tro! De/i+tio"s For

W1"le 8o&/"n+ 1&o+1 1e IC!= 1e a'"o& !1ol' "'en"f. 'e5"a"on! f&o9 1e

,&e!&"be' "ne&nal on&ol! "n 1e o,e&a"on! of 1e a'"e' en".$ T1e a'"o& 8"ll

'o9en ea1 "n'"5"'al 'e5"a"on an' "! ,oen"al "9,a on 1e en".! F"nan"alSae9en! on 1"! fo&9$ T1e&e !1ol' be one fo&9 fo& ea1 'e5"a"on enone&e'$

W1e&e 1e o,e&a"on! of 1e a'"ee o&+an"!a"on a&e 'een&al"e'= " "! "9,o&an oa!!e!! 81"1 8ea/ne!!e! a&e 'e o !ae&e' na&e of 'e,a&9en,ol". 8ea/ne!!e!

an' 81"1 a&e 'e o 1e "na'e>ae a,,l"a"on of 1e!e "ne&nal on&ol !.!e9! an'

,ol""e! 8"1"n 1e 'een&al"e' !"e! be"n+ a'"e'$

-;


46/125

0.: I"ter"+! o"tro! De/i+tio"s Su+r)

Fo& ea1 !"+n"f"an .,e of 'e5"a"on 'eee'= 1e a'"o& !1ol' &e,o& " o 1e en".!9ana+e9en an' 9a/e a &eo99en'a"on fo& &e"f."n+ 1e on&ol 8ea/ne!!$ T1e

,&,o!e of 1"! fo&9 "! o 1el, 1e a'"o& &a/ ea1 8ea/ne!! "'en"f"e' b. a,,l."n+ 1e

IC= 1e ,&oble9 an' 1e"& &eo99en'a"on 81"1 8e&e &e,o&e' o 1e en".$ T1e .ea&"n 81"1 1e en". oo/ o&&e"5e a"on !1ol' al!o be on!"'e&e'$

0.; op!i+"%e Su+r)

T1e a'"o& 8"ll !e 1"! fo&9 o "'en"f. 1e le+al o& &e+lao&. ,&o5"!"on! 1a 1e en".

!1ol' o9,l. 8"1= o 'o9en 1e on&ol 1a "! "n ,lae o 1e/ o9,l"ane= o

'o9en 81e1e& 1e a'"o& on!"'e&! 1e on&ol o be !a"!fao&.= an' 81e1e&o9,l"ane 8a! e5"'en$

0.1= Su(st+"ti/e Tests of A%%ou"ti"$ Esti+tes

T1"! fo&9 !99a&"!e! 1e e&&o&! "'en"f"e' '&"n+ 1e ,e&fo&9ane of !b!an"5e e!! on

aon"n+ e!"9ae!$ T1e a'"o& 8"ll !e " o !99a&"!e e&&o&! 1a 8e&e "'en"f"e' "n1e E&&o&! "n Aon"n+ E!"9ae! Fo&9 (!ee ne3 fo&9) fo& lae& !e "n a++&e+a"n+ 1e

e&&o&! "n 1e E5ala"on an' Re,o&"n+ ,1a!e$

0.11 Errors i" A%%ou"ti"$ Esti+tes

Fo& 1e aon"n+ e!"9ae! 1a 8e&e "'en"f"e' "n 1e Plann"n+ f"le fo&9 alle'

C1e/l"! of aon"n+ e!"9ae! o be &e5"e8e'= 1e a'"o& 8"ll 'o9en 1"! o& 1e&&e5"e8 of 1e e!"9ae an' 1e na&e an' 5ale of an. e&&o&! 1a 8e&e "'en"f"e'$ T1e!e

e&&o&! 8"ll be !99a&"!e' "n 1e Sb!an"5e Te!! of Aon"n+ E!"9ae! fo&9 a!'e!&"be' abo5e$

0.1# Su(st+"ti/e Test S+p!e Su+r) for e+%hAuit Pro$r+e

T1e a'"o& 9! e! 1e !a9,le' &an!a"on! o "'en"f. 1e "n"'ene of e&&o&! "n 1e!a9,le$ T1"! "! 'one b. follo8"n+ 1e 'ea"le' +"'ane ,&o5"'e' "n 1e A'"

P&o+&a99e! fo& '"ffe&en a!,e! of 8o&/! a'" +"5en a Se"on 4$%4 on8a&'! of 1"!

1a,e& n'e& 1e 1ea'"n+ A'" P&o+&a99e!$ T1e a'"o&! a&e e3,ee' o !ele 1e

&ele5an a'" ,&o+&a99e! fo& ea1 a'" a! 1e. 'o no 1a5e o a,,l. all 1e ,o!!"ble

A'" P&o+&a99e! "n e5e&. a'"$

Sb!an"5e e!"n+ e3a9"ne! a !a9,le of "n'"5"'al &an!a"on! o 'ee&9"ne 81e1e&1e &an!a"on! !elee' o9,l. 8"1 all a,,l"able la8!= &e+la"on! an' &le! o f"n'

an. e&&o&! o& ano9al"e! 1a 9a. e3"!$ Ea1 A'" P&o+&a99e ,&o5"'e! a ba!" !e of

!e,! fo& 1e a'"o& o follo8 o ,e&fo&9 !b!an"5e e!!$

-%


47/125

T1e !b!an"5e e!"n+ !e"on of 1e A'" P&o+&a99e! "nl'e! a ba!" !e of a'"

ob@e"5e!= 81"1 a&e 'e!&"be' belo80

A5+* O&'*+,-

To 'ee&9"ne 81e1e&= on 1e ba!"! of 1e &an!a"on! e3a9"ne' (!ele"n+ a

&e,&e!ena"5e !a9,le of &an!a"on! o& o1e& fo&9 of !a9,le)= 1e en".! F"nan"alSae9en! o9,l"e! 8"1 1e follo8"n+ a!!e&"on!-0

Pre(e!tato! a!d D(c#o($re:1e &an!a"on! 1a5e been a,,&o,&"ael. &eo&'e'=

la!!"f"e' an' ,&e!ene'$

E4(te!ce a!d Occ$rre!ce:all &an!a"on! &ele5an o 1e .ea& of aon 1a5e

been &eo&'e' an' all &eo&'e' &an!a"on! 1a5e o&&e'$

o'"#ete!e((:all &an!a"on! &ele5an o 1e .ea& of aon 1a5e been &eo&'e'

an' "nl'e' 1e e! 1a! al!o been e3en'e' o "nl'e 1e o9,leene!! of81a !1ol' 1a5e been "nl'e' no @! 1e &eo&'e' &an!a"on!0 "$e$ all a3e!

'e= no @! 1o!e ollee'$

Mea($re'e!t:1e &eo&'e' &an!a"on! 1a5e been o&&el. 5ale'= a&ael.

allae' an' a,,&o,&"ael. 9ea!&e'$

Re%$#art-: all a"5""e! an' f"nan"al &an!a"on! e3a9"ne' o9,l. 8"1

&ele5an la8! an' &e+la"on! (ba!e' on 1e !ele"on of all !"+n"f"an

a"5""e!&an!a"on! an' a !a9,le of 1e &e9a"n'e&)J an' on 1e ba!"! of 1"!a'" 8o&/ onl'e 81e1e& 1e &ele5an la8! an' &e+la"on! a&e be"n+ ,&o,e&l.

a,,l"e'$

T1e /e. A'" P&o+&a99e! fo& 1"! ,&,o!e a&e +"5en n'e& !e"on 4$%4$

0.1& Su(st+"ti/e Test of Hi$h @+!ueKe) Ites >

Su+r)

T1"! fo&9 "! !e' o !99a&"!e e&&o&! fon' b. 1e Sb!an"5e Te!! of H"+1 aleKe.Ie9! 1a 8e&e ,e&fo&9e'$ T1e a'"o& !1ol' noe 81a ,&oe'&e! 8e&e ,e&fo&9e' an'

1e na&e an' 5ale of 1e e&&o&!= an' &o!!


48/125

Ke. Ie9!)$ Dea"l! of 1e 5o1e& on 81"1 1e e&&o& o&&e'= 1e na&e an' a!e of

1e e&&o& an' "! 5ale !1ol' be 'o9ene' on 1"! fo&9$

0.1, EBit I"ter/ie4s

Se"on $# of FA7 !&e!!e! 1e "9,o&ane of /ee,"n+ en". off""al! "nfo&9e' '&"n+1e o&!e of a'"$ In a''""on o o,en o99n"a"on! '&"n+ a'"= " "! a +oo' ,&a"e

o a&&an+e a 9ee"n+ 8"1 !en"o& en". 9ana+e9en a 1e en' of 1e f"el'8o&/ a ea1

loa"on$

T1e a'" of 'een&al"e' !"e!= &e9oe f&o9 1e A'" Off"e (o of 81"1 1e a'"

ea9 o,e&ae!)= "! o9,l"ae' b. 1e fa 1a b&"ef"n+ of 1e 9ana+e9en a 1e !"eanno be 'one afe& 1e !en"o& a'" 9ana+e9en 1a! &e5"e8e' 1e a'" f"n'"n+!$ T1"!

9ean! 1a 1e ea9 !1ol' ,&o5"'e fee'ba/ o 9ana+e9en a 1e 'een&al"e' !"e

,&"o& o on'"n+ a fll &e5"e8 of f"n'"n+!$ I "! a +oo' ,&a"e fo& 1e a'" ea9 lea'e&o 'ee&9"ne 81e1e& 1e&e a&e an. !en!""5e "!!e! 1a nee' o be b&o+1 o 1e

aen"on of !en"o& a'" 9ana+e9en ,&"o& o '"!!!"n+ 8"1 en". 9ana+e9en a 1e!"e$ W1e&e ,oen"all. !en!""5e 9ae&! a&e "n5ol5e'= 1e a'" ea9 lea'e& !1ol' +e

"n!&"on! f&o9 !en"o& a'" 9ana+e9en befo&e 1e e3" b&"ef"n+$

0.10 Auit Pro$r+es

T1e &e9a"n"n+ ,a& of 1"! !e"on ona"n! 1e follo8"n+ 'ea"le' a'" ,&o+&a99e! fo&

5a&"o! a'" a&ea! "nl'"n+$

A'" of E3,en'"&e! E9,lo.ee &elae' e3,en!e!

A'" of E3,en'"&e! P&o&e9en

A'" of E3,en'"&e! Plann"n+ an' Con&a A8a&'"n+ A'" of E3,en'"&e! Con&a I9,le9ena"on E3e"on

A'" of E3,en'"&e! Con&a Co9,le"on

A'" of E3,en'"&e! Wo&/ C1a&+e E!abl"!19en

A'" of E3,en'"&e! D"!b&!e9en (Wo&/e&! Welfa&e Fn')

A'" of Ino9e Gene&a"on of Fn'! (Wo&/e&! Welfa&e Fn')

A'" of Ino9e Re5ene (Wo&/e&! Welfa&e Fn')

A'" of Ino9e Re5ene (Na"onal H"+18a. A1o&".)

A'" of Ino9e Re5ene (Ca,"al De5elo,9en A1o&".)

A'" of A!!e! A!!e! 7ana+e9en

A'" P&o+&a99e A'" of In5e!9en

A'" P&o+&a99e F"nan"al 7ana+e9en

T1e A'" P&o+&a99e! +"5en "n 1"! !e"on anno ,&o5"'e an e31a!"5e !e of 1e/!$Al1o+1 "n e&a"n a!e! !,e"f" &efe&ene! o 1e &&en &le! an' &e+la"on! 1a5e

been +"5en "n 1e a'" ,&o+&a99e!= " nee'! o be noe' 1a 1e a'"o& !1ol' be

fa9"l"a& 8"1 1e o,e&a"on! of 1e a'" en". an' !1ol' 1a5e a !on' /no8le'+e of 1e

-?


49/125

&ele5an la8!= &e+la"on! an' &le! 8"1 81"1 1e &an!a"on! 9! o9,l.$ T1"! 8"ll

allo8 1"91e& o 9a/e a,,&o,&"ae a'@!9en! o 1e a'" ,&o+&a99e +"'e!$

F&1e&9o&e= "f 1e a'" ,&o+&a99e! 'o no o5e& 1e a'"o&! &e>"&e9en!= 1e an a''an a'" 8o&/ !1ee on 81"1 1e noe! 1e 'ea"l! of &an!a"on(!) (&e5enee3,en!e

"n5e!9en e)= 1"! a'" ,&oe'&e(!) an' f"n'"n+!$ T1e a'" ,&o+&a99e! 1a5e been

'e5elo,e' b. /ee,"n+ "n 5"e8 1e &"!/! 9en"one' "n ?$2$

--


50/125

0.13 Auit Pro$r+e - Ep!o)ee Re!+te EBpe"ses

A$dt E!tt-: A$dt Perod:

Date)(* o!d$cted:

A$dt Proced$reDo!e

B-

5P

Re&

C1e/ 1a ,&o,e& ,a&"la&! a&e ene&e' "n A'" Re+"!e& fo&

Gaee' Off"e& an' "n Sale A'" Re+"!e& fo& Non

Gaee' Off"e&$

C1e/ 1a Off"e o&'e& o& E!abl"!19en o&'e& fo& ne8

a,,o"n9en "! "!!e' b. one&ne' 1ea' of 'e,a&9en an'

a9on "! ,a"' ao&'"n+ o !a"' o&'e& an' en"le9en "n A$R$

C1e/ 1a a/no8le'+e9en of ,a.9en o e9,lo.ee! "!

&ee"5e' f&o9 e9,lo.ee! D&a8"n+ an' '"!b&!e9en off"e&

(DDO)$ C1e/ 1a DDO e&"f"e' 1e ,a.9en o Non Gaee'

Off"e&

C1e/ 1a Pa.&oll Off"e& ,&e,a&e! 7on1l. S1e'le of

E9,lo.ee! lae! b. *41 of ea1 9on1 an' A,,&o5e' b.

S,e&5"!"n+ Pa.&oll Off"e&$

C1e/ 1a Dele+ae' Off"e& (o1e& 1an Pa.&oll S,e&5"!"n+

Pa.&oll Off"e&) ,&e,a&e! Pa.&oll C&e'" In5o"e o& C1e>e

an' !"+n b. a lea! 8o off"e&!$

C1e/ 1a &ele5an off"e& ene&! all 1e ,a.9en! "no

Re+"!e& an' ,&e,a&e! Pa.&oll A'5"e Noe (PAN) fo& ban/ "na!e of C1e>e ,a.9en an' Pa.&oll C&e'" A'5"e (PCA) fo&

'"&e ban/ &an!fe&$

C1e/ 1a ,a.9en o e9,lo.ee! "! &eon"le' 8"1

one&ne' 'e,a&9en$

C1e/ 1a o,. of PCA 6 PAN a&e !en o Aon Se"on

C1e/ 1a 1e e9,lo.ee "! "'en"f"e' "n A'"Sale A'"

Re+"!e&J an' 1a ,a.9en 8a! 9a'e o o&&e ,a.ee

C1e/ 1a ,&o,e& ,e&!onal f"le! of all 1e off"e&! 8"1 all

nee!!a&. ,a&"la&! a&e 9a"na"ne'$

C1e/ 1a Se&5"e Boo/ 9a"na"ne' fo& Non Gaee' Off"e&

an' e&"f"e' b. DDO$

Con' a &eon"l"a"on (an'o& 1e/ a ba1 of

&an!a"on!) be8een D"&e C&e'" A'5"e Pa.&oll

A'5"e DDO 9on1l. !ae9enQ an' 9on1l. !1e'le of

E9,lo.ee! Sala&"e! an' Co9,"la"on S1ee

C1e/ 1a 1e 'e'"on! a&e o&&e (ao&'"n+ o 1e GP

Fn' 1e "no9e Ta3 O&'"nane= *;;% an' a! 9o'"f"e' f&o9

-2


51/125

"9e o "9e o1e& 'e'"on! "n ao&'ane 8"1 &le! an'

&e+la"on! +o5e&n"n+ 'e'"on! !1 a! &en 'e'"on!=loan! an' a'5ane! e$)

C1e/ 1a 1e a9on of 1e f"&! ,a.9en 8a! o&&e

ao&'"n+ o 1e @o"n"n+ 'ae of 1e ne8 e9,lo.ee! an'

ao&'"n+ o 1e"& Pa.&oll Re+"!e& C1e/ 1a 1e a9on of 1e la! ,a.9en 8a! o&&e

ao&'"n+ o 1e 'ae of la! 'a. of e9,lo.9en "n !e"on an'

ao&'"n+ o 1e"& Pa.&oll Re+"!e& o9,a&e ,a. !l",! 8"1La! Pa. !l", Ce&"f"ae "!!e'

C1e/ 1a ,a.&oll ,a.9en! a&e o&&el. "'en"f"e' "n 1e

Co9,"la"on S1ee n'e& Pa.&oll Ob@e an' o&&el. o'e'ao&'"n+ o 1e C1a& of Aon! b. 1e/"n+ 1a 1e ne

,a. an' 'e'"on! 1a5e been o&&el. o'e' ao&'"n+ o

1e C1a& of Aon! o'e!$

C1e/ 1a 1e oal ,a. (+&o!!= ne an' 'e'"on!) a&e

o&&el. ,&e!ene' "n 1e Co9,"la"on S1ee of 1e !elee'9on1 b. 9a/"n+ 1e nee!!a&. alla"on!$

Adhoc Re#e& )5a%e T-"e: 1861*

C1e/ 1a e9,lo.ee! 81o!e 'ae of @o"n"n+ 8a! ?;


52/125

"99e'"ael. befo&e 1e"& a,,o"n9en

(,&o9o"on!&an!fe&!ab!o&,"on!)$

(Ref0 lee& FD$PC


53/125

(Ref0 lee& FD$PC


54/125

0.1: Auit Pro$r+e - Pro%uree"t


Date)(* o!d$cted:

A$dt Proced$re Do!e

B-

5P

Re&

I. E4(te!ce a!d occ$rre!ce

C1e/ 1e0

Do9ena"on (,&1a!e o&'e&,&1a!e

a1o&"a"on"n5o"e'el"5e&. &ee", an' &ee"5"n+

'o9ena"on!)

En&. "n "n5eno&. &e+"!e&$ Pa.9en! fo& ,&o'9ae&"al ene&e' "no le'+e& fo&

&&en .ea&$

Pa.9en 8a! 9a'e o 1e o&&e ,a.ee$

P5A ode Para 107 to 110;

II. o'"#ete!e((

Reon"le oal e3,en'"&e! on ,&o'9ae&"al 8"1 1e

a9on &eo&'e' "n 1e le'+e&$

C1e/ 1a all 9ae&"al &eo&'e' a! a>"&e' "n 1e .ea& a&e

1a&+e' a+a"n! 1a .ea&$

R$#e 2 o&


55/125

8a&&an"e!$

C1e/ "n a!e of lae 'el"5e&.= 81e1e& an. ,enal"e! a,,l.

n'e& on&a an' "f !o= 81e1e& ,a.9en 8a! a'@!e'

ao&'"n+l.$

P5A ode Para No. 20?;

I=. Re%$#art-

C1e/ 1a 1e a>"!""on ,&oe!! an' 1e !"e of ,&1a!e

"! 8"1"n 1e a1o&". l"9" of 1e a1o&""n+ off"e&$

C1e/ 1a 1e !,,o&"n+ 'o9en! ona"ne' 1e

@!"f"a"on fo& la&+e ,&1a!e!$

C1e/ 1e e3,en'"&e 8a! on!"!en 8"1 1e na&e of

1e a,,&o,&"a"on o 81"1 " 8a! 1a&+e'$

C1e/ 1a 1e !,,l"e&! na9e "! on 1e l"! of a,,&o5e'

5en'o&!$

C1e/ 1a "n all 9a@o& &e!,e!= 1e la8!= &e+la"on!= &le!

an' ,ol""e! o 1e a>"!""on a&e o9,l"e' 8"10

o P&o&e9en P&oe!! an' 7e1o'olo+.

o Eono9. an' effe"5ene!!

o So&a+e "!!e!

o In'en o !,,l.

o So&a+e

o I!!e ,ol".

o A&&an+"n+ of !o&e!

o L"9"! of !o&a+e

PPR>2009: R$#e 17 to 22;


=. Mo!tor!% a!d Ma!te!a!ce

E3a9"ne 1e fa"l""e! fo& 1an'l"n+ of e>",9en! an'

1e/ 1a0

a$ 1e e>",9en! ,lae' "n !"able ,lae!

b$ 1e !o&a+e "! f&ee of 1aa&'! "n 'an+e&o! !"a"on$ 1e 1an'l"n+ e>",9en "! "n +oo' 1an'l"n+ o&'e&

'$ 1e&e 8e&e a'e>ae ,e&"o'" 1e/! o5e& 1e !a+e

of e>",9en!e$ 1e&e a&e a'e>ae ,1.!"al on&ol o5e& 1e

e>",9en! o 1e/ 1a 1e e>",9en 8e&e

,&o,e&l. !afe+a&'e'

C1e/ 81e1e& 1e 9a"nenane of e>",9en! &eo&'! a&e

!ff""en o !afe+a&' 1e "n5eno&.

a$ &eo&'! a&e 9a"na"ne' , o 'ae

b$ ae!! o &eo&' "! l"9"e' o 9a/e " '"ff"l o

2;


56/125

ale& o o5e& , 1ef

&e+la& &eon"l"a"on of aal e>",9en! 8"1 "n5eno&.&eo&'! an' aon"n+ &eo&'! 1e&eof


2%


57/125

0.1; Auit Pro$r+e - P!+""i"$ +" o"tr+%t

A4+ri"$

A$dt E!tt-: A$dt Perod:Date)(* o!d$cted:

A$dt Proced$reDo!e

B-

5P

Re&

I. P#a!!!% @ E(t'ato! o& +or(.

C1e/ 1a 0

Fea!"b"l". !'. 8a! ,&e,a&e' "n a!e of 7e+a P&o@e!$

D&a8"n+!= 8o&/ !,e"f"a"on! 8e&e ,&e,a&e' on 1e ba!"! of

'aa of !&5e. &e,o&!$

Wa! 1e ,&o@e eono9"all. 5"able on 1e ba!"! of fea!"b"l".

!'.$ If 1e ,&o@e 8a! no eono9"all. 5"able= 81a 8e&e 1e

&ea!on! fo& "! !ele"on

De!"+n 8a! ,&e,a&e' 1&o+1 'e!"+n on!lan!'e!"+n 8"n+

an' a,,&o5e' b. 1e o9,een a1o&".$

Rae! !e' "n 1e e!"9ae! 8e&e "n ao&'ane 8"1 1e &ae!

!,e"f"e' "n NHA o9,o!"e S1e'le of Rae!$

E!"9ae! 8e&e ba!e' ,on ,&e5a"l"n+ 9a&/e &ae! "n a!e of

Non S1e'le Rae!$

Rae! of Non S1e'le! Ie9! 8e&e ,&o,e&l. anal.!e' an'

anal.!"! 8a! a5a"lable 8"1 e!"9ae$ PC


58/125

+"'el"ne! "!!e' b. 1e Go5$

PPR>2009 : R$#e( 8, 12 @ 17;

E!%a%e'e!t o& co!tractor

C1e/ 1e enl"!9en&ene8al of on&ao&! 8"1 1e'e,a&9en

C1e/ 1e no"f"a"on fo& ,&eal"f"a"on of on&ao&!

a'5e&"!e' "n 1e ,&e!!$

C1e/ 1a 1e &"e&"a fo& !ele"on of on&ao&! 8e&e

follo8e'$

C1e/ 1a 1e !ff""en "9e 8a! +"5en o on&ao&! fo&

!b9"!!"on of 'o9en! fo& ,&eal"f"a"on

ode o& the re#ea!t de"art'e!t;

Te!der!%:

C1e/ 1a en'e& 8a! a'5e&"!e' "n ao&'ane 8"1 1e ,ol".

of 1e +o5e&n9en$

C1e/ 1a b"'! 8e&e "n5"e'&ee"5e' f&o9 ,&eal"f"e'

b"''e&!

C1e/ 1a b"'! 8e&e e5alae' an' ae,e' 8"1"n 5al"'".

,e&"o'$

C1e/ 1a b"' !e&". 8a! oba"ne'$

C1e/ 1a en'e&! 8e&e o,ene' "n 1e ,&e!ene of b"''e&!$

C1e/ 1a 1e en'e& !ale an' en'e& o,en &e+"!e&9a"nenane$

C1e/ 1e ,&o5"!"on! of PPRA oe' b. 1ea,,l"an an' &ae! >oe' b. 1e on&ao& 8e&e ,&o5"'e' "nf"+&e an' 8o&'!$

C1e/ 1a 1e&e 8e&e no "ne&,ola"on! an' o&&e"on! 9a'e

"n 1e en'e& an' en!&e 1a all 1e 1an+e! 8e&e a,,&o5e' b.

1e o9,een a1o&".$

C1e/ 1a a o9,a&a"5e !ae9en of all 1e b"''e&! 8a!

,&e,a&e' "n 1e en'e& &e+"!e&$

2?


59/125

C1e/ 1e ba!"! on 81"1 b"''"n+ a,,l"a"on! 8e&e ae,e'

o& &e@ee'$

C1e/ 1e a&"19e" a&a. of 1e alla"on! "n 1e en'e&

an' e!"9ae!$

C1e/ 1a ae,ane lee&! 8e&e "!!e' o 1e !e!!fl

b"''e&! 8"1"n b"' 5al"'". ,e&"o'$ C1e/ 1a 8o&/ 8a! no a8a&'e' 8"1o o,en en'e&"n+$

PPR>2009: R$#e 20 to 2;

Re#ea!t co!tract a%ree'e!t(;

III. Po(t d co!tract a'e!d'e!t(

C1e/ 1a 1e ,o! b"' a9en'9en! 8e&e 9a'e "n ao&'ane

8"1 1e &le! an' &e+la"on!$

C1e/ 1e on&a a+&ee9en o !ee 1e a9en'9en! "nl'e'

1e&e"n$

NA ode: ha"ter 6, Para ?;

2-


60/125

0.#= Auit Pro$r+e - o"tr+%t

Ip!ee"t+tio"EBe%utio"


A$dt Proced$reDo!e

B-

5P

Re&

I. =arato! cha!%e order( ! or%!a# co!tract+or order(

C1e/ 1a 1e 5a&"a"on!'e5"a"on f&o9 a,,&o5e' !o,e 8a!

9a'e a! ,e& &e>"&e9en!$

C1e/ 5a&"a"on 8a! &eo99en'e' b. 1e en+"nee& (no9"nae'

on!lan) of 1e on&a

C1e/ 1a 1e 5a&"a"on o&'e& "! a,,&o5e' b. 1e o9,een

a1o&".$ C1e/ 1a 1e o! of 5a&"a"on o&'e& 8a! ,&e,a&e' "n

ao&'ane 8"1 1e e&9! an' on'""on! of 1e on&aa+&ee9en o& ,&e5a"l"n+ 9a&/e &ae!$

NA ode: ha"ter 6, Para ?;

II. Mea($re'e!t o& +or(

C1e/ 1e 9ea!&e9en boo/ an' en!&e 1a 1e

9ea!&e9en! 8e&e &eo&'e' "n 1&onolo+"al o&'e&$

C1e/ 1e a&"19e" a&a. of 1e alla"on! boo/e' "n 1e

9ea!&e9en boo/ an' en!&e 1e a++&e+ae 9ea!&e9en! 'o

no e3ee' e!"9ae' >an""e! a! 9en"one' "n 1e B"ll ofan""e! (BO)$

I'en"f. 1e a!e! of e3e!! 9ea!&e9en f&o9 1e

9ea!&e9en boo/ an' en!&e ,&o,e& a"on 1a! been a/ena+a"n! 1e &e!,on!"ble off"e&!off""al!$

C1e/ 1a 'ea"l 9ea!&e9en! 8e&e &eo&'e' "n 1e 7$B$

C1e/ 1a 9ae&"al e!e' "n a1o&"e'a,,&o5e' labo&ao&.$

.P.5.A ode: Para 20?;

III. E4tra &!a!ca# a(((ta!ce to the co!tractor(

C1e/ on&a a+&ee9en an' o9,a&e " 8"1 9ea!&e9en!

&eo&'e' "n 1e 9ea!&e9en boo/ an' ,a.9en 5o1e&!

1&o+1 81"1 ,a.9en 8a! 9a'e o 1e on&ao&!$

In a!e of an. 'e5"a"on f&o9 1e on&a a+&ee9en= &eo&'

1e "n!ane! an' ,&obe "no 1e 9ae&$

22


61/125

.P.5.A ode: Para 20?;

I=. E(ca#ato! c#a' o& the co!tractor(

C1e/ e!ala"on ,&o5"!"on! of 1e on&a a+&ee9en an'

o9,a&e 8"1 1e ,a.9en 5o1e&$

C1e/ 1a 1e Fao& VCV 8a! ,&o5"'e' "n 1e a+&ee9en$ Ina!e of 1an+e of Fao& VCV &eo&' 1e "n!ane! an' ,&obe

"no 1e 9ae&$

C1e/ 1e &&en &aeba!e &ae! of 9ae&"al! "! ,&o5"'e' "n 1e

a+&ee9en fo& e!ala"on ,&,o!e$

C1e/ 1e !o&e of 9ae&"al "! 9en"one' "n 1e a+&ee9en$ If

1e&e "! a 1an+e "n !o&e of 9ae&"al= ,&obe "no 1e 9ae&$

o!tract #a$(e F 0, A""e!d4 >;

=. Pa-'e!t(

C1e/ 5o1e&! ,a!!e',a.9en 9a'e b. SDO 8a! ,&e"'ae'

'a9a+e! (LD) 1a5e been "9,o!e'&eo5e&e' "n ao&'ane8"1 1e ,&o5"!"on! of NHA ,&oe'&e! an' boo/ of f"nan"al

,o8e&$

o!tract A%ree'e!t: #a$(e 97 @ 9 o& N..A;

=III. a#$re a!d ter'!ato! o& co!tract(

C1e/ 1e "5"l 8o&/! e3e"on "n ao&'ane 8"1 1eon&aal ,&o5"!"on!

In a!e of non o9,l"ane 8"1 1e e&9! an' on'""on of 1e

on&a en!&e 1e on&ao& 8a! ,enal"e' "n ao&'ane

8"1 1e ,&o5"!"on! of 1e on&a$

IH. Pa-'e!t o& ada!ce(, Mo#ato! ada!ce, Sec$red ada!ce

2


63/125

C1e/ 1e on&aal ,&o5"!"on! o8a&'! 1e ,a.9en of

a'5ane!= 7ob"l"a"on a'5ane an' Se&e' a'5ane$

C1e/ 1e a1en"". of ban/ +a&anee!'eben&e bon'!

!b9"e' b. 1e on&ao&!!,,l"e&! a+a"n! 7ob"l"a"on

a'5ane Se&e' a'5ane 8a! ,a"'$

C1e/ 1e 9ae&"al b&o+1 a !"e a+a"n! 81"1 Se&e'a'5ane 8a! ,a"'

.P.5.A ode: Para 268;

Re#ea!t o!tract A%ree'e!t #a$(e(;

H. No! recoer-ad/$(t'e!t o& #oa!( a!d ada!ce( to

co!tractor(($""#er(de"art'e!t(

C1e/ loan! an' a'5ane! "!!e' o 1e on&ao&! !,,l"e&!

8e&e "n ao&'ane 8"1 1e e&9! 6 on'""on! of 1e on&a

C1e/ 1e loan! an' a'5ane! +"5en 8e&e a,,&o5e' b. 1e

o9,een a1o&".$

$C1e/ a&ae boo/"n+ of all loan! an' a'5ane! "n 1e

f"nan"al !ae9en!$

C1e/ 1e ,&o+&e!! &e,o& on&a! an' en!&e 1e loan! an'

a'5ane! 8e&e &eo5e&e' "n ao&'ane 8"1 1e e&9! an'

on'""on! of 1e a+&ee9en$

.P.5.A ode: Para 268;


HI. No! e!ca(h'e!t o& "er&or'a!ce o!d(a! %$ara!tee

C1e/ 1a 1e ,e&fo&9ane bon'!ban/ +a&anee &ee"5e'

f&o9 1e on&ao&!,,l"e& "n ao&'ane 8"1 1e e&9! an'

on'""on! of 1e on&a$

C1e/ 1e a1en"". of 1e ,e&fo&9ane bon'! ban/

+a&anee! be"n+ !b9"e' b. 1e on&ao&!!,,l"e&!$

C1e/ 1e +a&anee &e+"!e& an' en!&e 1e o9,leene!! an'

!afe !o'. of 1e bon'!+&anee!$

C1e/ 1e bon'! +a&anee! 8e&e ena1!e' "n ao&'ane 8"11e ,&o5"!"on! of 1e on&a$


HII. Sec$rt- de"o(t(

C1e/ 1e ,&o5"!"on! 1e on&a a+&ee9en

C1e/ 1e 9a"nenane of !e&". 'e,o!"! &e+"!e&!all"e'

2#


64/125

&eo&'!$

C1e/ 1e &efn'! of !e&". 'e,o!"! on !a"!fao&.

o9,le"on of 'efe l"ab"l". ,e&"o'$

.P.5.A ode: Para 688 @ 6?0;

HIII. Ded$cto! o& !co'e ta4

C1e/ 1e ,&o5"!"on! of 1e on&a a+&ee9en o8a&'!

'e'"on of "no9e a3$

C1e/ 1e aal 'e'"on of "no9e a3= "f 'e5"a"on= ,&obe

1e 9ae& "no 1e 9ae&$

I!co'e Ta4 Ord!a!ce 2001;

2


65/125

0.#1 Auit Pro$r+e - o"tr+%t op!etio"


Date)(* o!d$cted:

A$dt Proced$reDo!e

B-

5P

Re&

I. Ma/or 5or)Dee#o"'e!t 5or*

C1e/ 1a PC I ,&e,a&e' an' !b9"e' o 1e o9,een

a1o&".

C1e/ 1a 1e Defe L"ab"l". Pe&"o' 1a! been !e!!fll.

o9,lee'$

C1e/ 1a 1e ,e&fo&9ane !e&". an' !e&". 'e,o!" a&e

&elea!e' afe& 1e e3,"&. of Defe L"ab"l". Pe&"o'$

C1e/ 1a 1e o9,l"ane of ob@e"5e! !e "n PCa&e&

C1e/ 1e TSE "! ao&'"n+ o .a&' !"/ of annal 76R fo&

Roa'B"l'"n+ an' 8"1o ,&o5"!"on of on"n+en"e!$C1e/ an' &e,o& "f an. "e9 ,e&a"n"n+ o o&"+"nal 8o&/ "!

"no&,o&ae' "n 1e 76R$

C1e/ 1e "!!ane of AA of 1e 76R e3ee'"n+ R!$ 2;=;;;$

C1e/ 1a 1e !1"on of %; 1a! no been !e' "n TS

e!"9ae$

C1e/ 1a 1e 8o&/ ,lan fo& 76R of &oa'b"l'"n+! 1a! been

4;


66/125

a,,&o5e' b. 1e o9,een a1o&".$

C1e/ 1a 1e +ene&al &e,a"& an' 9a"nenane 8o&/ 1a! been

o9,lee' 8"1"n 1e f"nan"al .ea&= a! 1e !an"on of e!"9ae

la,!e! on 1e la! 'a. of 1e 8o&/"n+ .ea&$

.P.5.A ode: Para 20 to 22;

4%


67/125

0.#1 Auit Pro$r+e - or2 h+r$e Est+(!ishe"t


Date)(* o!d$cted:

A$dt Proced$reDo!e

B-

5P

Re&

C1e/ 1e Re+"!e& of F"3e' C1a&+e! o !ee 1a all !an"on!

an' 1a&+e! &ela"n+ o " a&e "n o&'e&$

C1e/ ,&o5"!"on "n 1e !an"on e!"9ae$

C1e/ 1e ,&e!! a'5e&"!e9en fo& a,,o"n9en of 8o&/

1a&+e e!abl"!19ene9,lo.ee!

C1e/ 1a 1e &ae! of ,a. a,,&o5e' b. 1e Go5e&n9en fo&

1e la!!e! of 8o&/ 1a&+e e!abl"!19en a&e no e3ee'e'$

C1e/ 1a e9,lo.ee! n'e& 8o&/ 1a&+e' e!abl"!19en 81o

a&e +ene&all. ,a"' a 9on1l. &ae! of ,a. !1ol' no ,a"' a!

'a"l. labo&! 8"1 a 5"e8 o "nf&"n+e 1e &le! +o5e&n"n+ 1e

,a. of !1 e!abl"!19en$

C1e/ 1a 1e 8o&/ 1a&+e e9,lo.ee!e!abl"!19en "!

'"!on"ne' afe& !,e"f"e' "9e (# 'a.!)$

C1e/ 81e1e& 1e en+a+e9en of 8o&/ 1a&+e e!abl"!19en

1a! been '"!on"ne' o& no afe& 1e o9,le"on of a 8o&/

fo& 81"1 1"! e!abl"!19en 8a! en&olle'$ C1e/ 1a 1e 8o&/ 1a&+e e!abl"!19en 1a! no been

a!!"+ne' 1e '"e! of ,e&9anen !aff$

C1e/ 1e ,a.9en "! be"n+ 9a'e on 9!e& &oll o 1e 8o&/

1a&+e e!abl"!19en 8"1 all o'al fo&9al""e!$

C1e/ 1e e3e"on 8o&/ b. 8o&/ 1a&+e e!abl"!19en

ao&'"n+ o 1e"& na&e of '.$

C1e/ 1a 1e e3,en'"&e "! 1a&+e' o ,&o,e& 1ea' of

aon 8"1 o&&e a9on "n 1e &ele5an ,e&"o'$

C1e/ 1a 1e ,a.9en 9a'e o 1e 8o&/ 1a&+e

e!abl"!19en "! ba!e' on 7!e& Roll (aen'ane !1ee)$

.P.5.A ode: Para 10 @ 12;

.P.5.A ode: Para 260 to 26;

4*


68/125

0.## Auit Pro$r+e - Dis(ursee"t 8or2er

e!f+re Fu"9


Date)(* o!d$cted:

A$dt Proced$re Do!e - 5P Re&

I. A##ocato! o& &$!d( to Pro!ca# 5orer( 5e#&are

Board(

C1e/ 1e 'e9an'! of Wo&/e&! Welfa&e Boa&'!

C1e/ 1a 81e1e& 'e9an'! 8e&e &ee"5e' "n "9e

C1e/ 1e &le! an' &e+la"on! o8a&'! a,,&o5al

of +o5e&n"n+ bo'.

C1e/ 1a 81e1e& fn'! 8e&e "9el.

&an!fe&&e'&elea!e' o Wo&/e&! Welfa&e Boa&'!$

C1e/ 1e 9on1l. ,&o+&e!! &e,o&! o8a&'!

e3,en'"&e &ee"5e' f&o9 Wo&/e&! Welfa&e

Boa&'!

Sec 10 o& 55 Ord!a!ce, 1?1;

II. Sa!cto! to+ard( e4"e!dt$re ! re("ect o&

ad'!(trato! @ 'a!a%e'e!t o& the $!d

C1e/ 1e e3,en'"&e! 8e&e "n&&e' "nao&'ane 8"1 &le! an' &e+la"on!

C1e/ 1a a!1 boo/ 8a! 9a"na"ne'

C1e/ 1a e3,en'"&e! 8e&e "n&&e' fo&

a,,&o5e' ,&,o!e

C1e/ 1e ban/ &eon"l"a"on !ae9en!

C1e/ 1e e3,en'"&e! 8e&e !,,o&e' 8"1

,&o,e& 5o1e&!

Sec 10 o& 55 Ord!a!ce, 1?1;

4?


69/125

0.#& Auit Pro$r+e - Ge"er+tio" of Fu"s8or2ers e!f+re Fu"9


Date)(* o!d$cted:

A$dt Proced$re( Do!e

B-

5P

Re&

I. o!tr$to! &ro' edera#


70/125

C1e/ 1a 0

A,,&o5al of Co9,een A1o&". o8a&'! "n5e!9en

8a! oba"ne'

T1e &le! of 1e Go5$ 8e&e ob!e&5e'

In5e!9en! 8e&e 9a'e 8"1 a,,&o5e' ban/!en".

W1e1e& "n5e!9en 8e&e 9a'e 8"1 1o!e ban/!en".offe&"n+ 9a3"99 &ae of ,&of"

W1e1e& !afe. 9ea!&e! o8a&'! !o'. of bon'!=

e&"f"ae! 8e&e a'o,e'

W1e1e& &e!,on!"b"l". "n 1"! &e+a&' 8a! la"' 'o8n 1e&e

W1e1e& !&,&"!e 1e/! 8e&e 9a'e

T1e ,&of" ea&ne' f&o9 "n5e!9en 1a! been ,&o,e&l.

aone' fo&$

M!$te( o& the ?thMeet!% o&


71/125

0.#* Auit Pro$r+e - Re/e"ue 8or2ers e!f+re

?o+r9


A$dt "roced$re Do!e

B-

5P

Re&

I.S-(te' o& Recoer- o& re!t o& at((ho"(

C1e/ 1e ,&e5a"l"n+ !.!e9 o8a&'! &eo5e&. of &en of

fla!!1o,!

C1e/ 1e oal n9be&! of fla! of Wo&/e& Welfa&e!

olon"e! an' !1o,!

C1e/ 1e oal n9be& of fla!!1o,! &eo&'e' "n 1e

le'+e&! 9a"na"ne'= o 8a1 1e &eo5e&. of &en

Co9,a&e 1e a+&ee' &ae! of &en 8"1 aal &eal"a"on

Para 6.16)* a!d a!!e4$re o& P.5.5.B o$(!%

Sche'e Po#c- 2002;

II. Jt#ato! o& ree!$e to+ard( e4"e!dt$re

C1e/ 1a 1e ,&o5"!"on of Wo&/e&! Welfa&e Fn'

O&'"nane C1e/ 1a 1e "n&&"n+ of e3,en'"&e f&o9 &e5ene 8a!

,&o5"'e' "n 1e b'+e

III. De"o(t o& rea#ed ree!$e ! re#ea!t acco$!t

C1e/ 1e on&aal ,&o5"!"on! fo& 'e,o!" of &e5ene$

C1e/ 1a 1e &e5ene ollee' b. 1e on&ao& 1a!

been 'e,o!"e' "n a1o&".! 9a"n aon 8"1 "n 1e!,e"f"e' "9e ,e&"o'$

In a!e of 'ela.e' &e9"ane of &e5ene b. 1e on&ao&

o a1o&".! 9a"n aon= en!&e 1a ,enal. (9a&/ ,)

"! "9,o!e' "n ao&'ane 8"1 1e on&aal la!e!$

C1e/ 1a 1e &eo5e&. of ,enal. (9a&/ ,) 1a&+e' a! a

&e!l of 'ela.e' &e9"ane! of &e5ene$

Re#ea!t o!tract #a$(e(;

44


72/125

4


73/125

0.#, Auit Pro$r+e > Re/e"ue 8N+tio"+! Hi$h4+)Authorit)9


Date)(* o!d$cted:

A$dt Proced$re Do!e

B-

5P

Re&

I. A+ard o& O"erato! @ Ma!a%e'e!t o!tract(

C1e/ 1e en'e& 8a! annone' ,bl"l. "n ao&'ane

8"1 1e ,ol". of 1e +o5e&n9en$

C1e/ 1e ,&eal"f"a"on of &e5ene on&ao&!$

C1e/ 1e &eo&' o8a&'! &aff" on a 5a&"o! ,laa!$

C1e/ 1e &e!e&5e ,&"e of oll ,laa! "n ao&'ane 8"1

&aff" on$

C1e/ 1a 1e b"''"n+ a,,l"a"on! of ,oen"al

on&ao&! 8e&e &eo&'e' "n 1e en'e& &e+"!e&$

C1e/ 1a no 8o&/ 8a! a8a&'e' 8"1o en'e&"n+$

P.P.R F 2009: R$#e 17 to 20;

NA ode: ha"ter 6;

II. Rea#ato! o& ree!$e

Co9,a&e 1e a+&ee' &ae! 8"1 aal &eal"a"on$

Co9,a&e 1e !ae9en of 5e1"le! 8"1 &eal"e' a9on!$

NA ode: ha"ter 7;


III. De"o(t o& rea#ed ree!$e ! re#ea!t acco$!t

C1e/ 1e on&aal ,&o5"!"on! fo& 'e,o!" of &e5ene$

C1e/ 1a 1e &e5ene ollee' b. 1e on&ao& 1a!

been 'e,o!"e' "n a1o&".! 9a"n aon 8"1 "n 1e!,e"f"e' "9e ,e&"o'$

In a!e of 'ela.e' &e9"ane of &e5ene b. 1e on&ao&

o a1o&".! 9a"n aon= en!&e ,enal. (9a&/ ,) "!

"9,o!e' "n ao&'ane 8"1 1e on&aal la!e!$

C1e/ 1a 1e &eo5e&. of ,enal. (9a&/ ,) 1a&+e' a! a

&e!l of 'ela.e' &e9"ane! of &e5ene$

4#


74/125


I=. Pa-'e!t o& (ta&& de"#o-ed at to## "#aa( ! ca(e o&

de"art'e!ta# co##ecto!

C1e/ 1e e&9! 6 on'""on! of e9,lo.9en on&a$

C1e/ 1a 1e 'e,lo.9en of !aff 8a! "n ao&'ane 8"1

1e e&9! 6 on'""on! of e9,lo.9en on&a$

C1e/ 1a 1e ,a.9en! 8e&e 9a'e on aon of

e9,lo.ee! 'e,lo.e' a oll ,laa!$

Ter'( @ o!dto!( o& E'"#o-ee(C o!tract;

=. Rea#ato! o& ree!$e o! acco$!t o& !(ta##ato! o& $t#te(

! RO5. )re ca#e, S$ %a( ""e #!e(, 5APDA

tra!('((o! #!e*

C1e/ 1e SOP! o8a&'! "l"a"on of ROW

C1e/ 1e &eo&' o8a&'! 1e "l"a"on of ROW b.

5a&"o! a+en"e! 'e,a&9en!

C1e/ 1a 1e &eal"a"on of !"n+ of ROW "! "n

ao&'ane 8"1 1e a,,&o5e' &ae!

C1e/ 1e &eo&' o8a&'! 1e &eal"a"on of &e5ene f&o9

5a&"o! 'e,a&9en! &e+a&'"n+ "l"a"on of ROW

C1e/ 1a 1e &e5ene &eal"e' 8a! 'e,o!"e' "n 1e

&ele5an ban/ aon an' &eo&'e' "n 1e boo/! ofaon!$

NA ode: ha"ter 8;

=I. Jt#ato! o& ree!$e to+ard( e4"e!dt$re.

C1e/ 81e1e& 1e 'e,a&9en "! a1o&"!e' o "l"e 1e

"ne&nall. +ene&ae' &e5ene$

If .e!= 1e/ 1e Rle! 6 Re+la"on! of 1e 'e,a&9en

fo& "! "l"a"on$

NA Act a!d Road Ma!te!a!ce R$#e( 2006;

4


75/125

0.#0 Auit Pro$r+e - Re/e"ue 8+pit+!

De/e!ope"t Authorit)9


Date)(* o!d$cted:

A$dt Proced$re Do!e

B-

5P

Re&.

I. 4ato! o& ree!$e tar%et(

C1e/ 1a !&5e. &e,o& 8a! ,&e,a&e' an' a,,&o5e' "n

o&'e& o e!"9ae 1e &e5ene a&+e!$

C1e/ 1a &e5ene e!"9ae! a&e &eal"!" an' ba!e' on

e1n"al +&on'!$ C1e/ 1a &ae! a&e ao&'"n+ o 1e a,,&o5e' an' ,'ae'

!1e'le an' &e5"!e' afe& f"5een .ea&!$

II. Proced$re &or co##ecto! o& ree!$e

C1e/ 1a 81e1e& 1e &ele5an ,e&!on ('e,o!"o&a3

,a.e&) 8a! "9el. "n"9ae' abo 1"!1e& l"ab"l""e! an'

follo8e' b. &e9"n'e&! "n a!e of no &e!,on!e$

C1e/ 1a an "nen"5e fo& "9el. ,a.9en 8a! ,&o5"'e'$

Para 2 @ 2 o&


76/125

T&ae 1e flo8 of aon! an' a!!&e 1a 1e

&an!a"on! a&e &eo&'e' "n aon!$ (!ele !a9,lef&o9 &ee", 5o1e&! an' &ae "n a!1 boo/= &ee",

boo/= le'+e& an' 5"e 5e&!a)

C1e/ 1a all &ee",! a&e ,&o,e&l. 9a"na"ne' an'

a/no8le'+e'$ C1e/ 1a &ee", 5o1e&! a&e ,&e a'"e'$

C1e/ a&"19e"al alla"on= an' 1a ,&o,e&

!,,o&"n+ a&e aa1e' (!ee 1e on&a a+&ee' 8"1

1e on&ao& "f an.)$

C1e/ 1a 81e1e& 1e &ee", 1a! been &eo&'e' "n "!

,&o,e& 1ea' of aon "n le'+e&!$

C1e/ 1a &e5ene ollee' 1&o+1 &"+1


77/125

=. Reco!c#ato!

Sele a !a9,le of &ee", 5o1e&! an' 9a1 8"1

1e ban/ !&oll$

7a"n aon !1ol' be &eon"le' 8"1 1e ban/!ae9en a 1e lo!e of .ea&$

O!an'"n+ 1e>e! 9a. al!o be 8a1e' ne3

9on1$

*


78/125

0.#3 Auit Pro$r+e - M+or Assets


Date)(* o!d$cted:

A$dt Proced$reDo!e

B-:

5P

Re&.

4ed A((et Re%(ter

C1e/ 1a 1e 'e,a&9en 1a! 9a"na"ne' f"3e' a!!e

&e+"!e& "n ao&'ane 8"1 1e ,&o5"!"on o& APPM)or' 16A*.

Fo& a !a9,le !elee' o of 1e F"3e' A!!e! Re+"!e&

1a 1e a!!e! ,1.!"all. e3"! an' 1a 1e. o9,l. 8"1

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Works Operations Audit Guidelines (Federal) 22-03-2010