Aud. Program - Accounts Payable

Commission on Audit
NATIONAL GOVERNMENT SECTOR

Cluster VIII - Infrastructure
Audit Program
ACCOUNTS PAYABLE
Agency: ___________________________________ Period Covered: _______________
Audit Objectives and Assertions:
1. To ascertain completeness and correctness of account balance as recorded in the books. (Accuracy and
Completeness)
2. To determine whether all charges to the accounts are made in accordance with applicable laws, rules and
regulations. (Regularity)
3. To determine whether the amount recorded represents legitimate claims against the agency. (Existence)
4. To determine whether the recorded accounts are properly and consistently classified and presented in the
financial statements and that disclosures are appropriate. (Presentation and disclosure)
TIME
Audit Procedures W.P. Done Estimated Actual Remarks
Ref. by From To Fro To
m
1. Accuracy and Completeness
1.1 Trace beginning balance to prior year's

audit working papers/ending balance
prior year's financial statements and
General Ledger.
1.2 Trace debit and credit postings in the GL

to the Check Disbursements Journal
(CkDJ) and General Journal (GJ) to
the Report of Disbursements / Report
of Checks Issued.
1.3 Foot the debit and credit entries in the

GL and establish the balance.
1.4 Secure copy of trial balance and

supporting schedule.
TIME
m
1.5 Compare the GL balance with the

balance in the Trial Balance (TB) and
the totals of the subsidiary ledger and
the Schedule of A/P.
1.6 Prepare Proof of Balance Working

Paper/Top Schedule.
1.7 Investigate discrepancies.
1.8 Prepare and issue AOM, if necessary.
2. Regularity
2.1 Trace individual entries in the Schedule

of Accounts Payable obtained in 1.4 to
unpaid DVs with supporting
documents in the Accounting Division
and ALOBS or ROAs (for obligations
prior to CY 2002). Take note of any
difference and those unsubstantiated
accounts Payable (AP).
2.2 Investigate long outstanding accounts,

especially those that are 2 years or
more and obtain explanation.
2.3 Evaluate explanation in 2.1.
2.4 With materiality of amount as basis,

select sample transactions from thr GL
debits and credits for vouching.
2.5 Trace and verify JEV entries of sample

transactions in 2.4 above to:
 RCI
 ADAs/DVs and supporting
documents
TIME
m
 ALOBS/ROAs on file at
the Accounting (SL)
 Schedule of Accounts
Payable.
Take note of any discrepancy.
2.6 For samples selected, examine DVs

ands supporting documents as to:
 Authorization and approval

 Legality
 Completeness of supporting
documents
 Accuracy
2.7 For payment of current year's AP,

determine if there is a corresponding
credit entry to the account.
2.8 For transferred/sub-alloted Accounts

Payable, verify basis. Confirm with
ROs/DEOs/OUs if such transfer is
recorded as Accounts Payable (AP)
using the Confirmation Form.
2.9 For recipient of Sub-Allotment Advices

(SAA) representing transfer of AP,
verify JEV taking up the transferred
AP as to:
a) Correctness of entries made.

b) Legal basis for the transfer of AP
c) Purpose of the transfer
d) Completeness of supporting
documents such as:
 JEV effecting the transfer of
AP
 Copy of ROAs/ALOBS of the
original obligations
TIME
m
 Contracts and Bidding

documents
 Project status/accomplishment
 Project cost sheets
2.9.1 Determine if the transferred AP

was used for the intended
purpose. Take note of any
deviation.
2.10 Prepare analysis-working paper using

the prescribed format.
3. Existence
3.1 For sample transactions in 2.4, confirm

with creditors.
3.2 Evaluate results of confirmation in 3.1.
3.3 Investigate unconfirmed accounts and

those disputed by creditors.
4. Presentation and Disclosure
4.1 Compare statement presentation with

the NGAS.
4.1.1. Determine that the account is

properly identified and
classified in the FS.
TIME
m
4.1.2. Determine the appropriateness/

completeness of disclosures
made in the Notes to FS.
Prepared by:___________________________ Reviewed by:__________________________
Date :___________________________ Date :__________________________
AcerB/fcm/accounts payable

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Commission on Audit

NATIONAL GOVERNMENT SECTOR

Agency: ___________________________________ Period Covered: _______________

Audit Objectives and Assertions:

1. Accuracy and Completeness

1.1 Trace beginning balance to prior year's

1.2 Trace debit and credit postings in the GL

1.3 Foot the debit and credit entries in the

1.4 Secure copy of trial balance and

1.5 Compare the GL balance with the

1.6 Prepare Proof of Balance Working

1.7 Investigate discrepancies.

1.8 Prepare and issue AOM, if necessary.

2.1 Trace individual entries in the Schedule

2.2 Investigate long outstanding accounts,

2.3 Evaluate explanation in 2.1.

2.4 With materiality of amount as basis,

2.5 Trace and verify JEV entries of sample

2.6 For samples selected, examine DVs

 Authorization and approval

2.7 For payment of current year's AP,

2.8 For transferred/sub-alloted Accounts

2.9 For recipient of Sub-Allotment Advices

a) Correctness of entries made.

 Contracts and Bidding

2.9.1 Determine if the transferred AP

2.10 Prepare analysis-working paper using

2.11 Prepare and issue AOM, if necessary.

3.1 For sample transactions in 2.4, confirm

3.2 Evaluate results of confirmation in 3.1.

3.3 Investigate unconfirmed accounts and

3.4 Prepare and issue AOM, if necessary.

4. Presentation and Disclosure

4.1 Compare statement presentation with

4.1.1. Determine that the account is

4.1.2. Determine the appropriateness/

4.2 Prepare and issue AOM, if necessary.

Prepared by:___________________________ Reviewed by:__________________________

Date :___________________________ Date :__________________________

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Agency: _____________________ Period Covered: _

Prepared by:_ Reviewed by:

Date :_ Date :