Deposits - Audit Program

Cooperative : Prepared by: Reviewed by:
Initial Date Initial Date
DEPOSITS
Audit procedures
1.0 PRELIMINARY WORK (Planning) Done References /

by: Commentaries
1.1 Examine the situation noted in the last audit file and in the
permanent file:
1.2 If applicable, transfer photocopies of required documents
(where a follow-up is needed or if there is a continuation of
the situation)
1.3 Examination of the balances, important fluctuations during the
year, etc.
1.4 Send confirmations to members (along with loans and shares)
as of Dec. 31st.
2.0 EVALUATION OF INTERNAL CONTROL SYSTEM
2.1 As you gather information on the way Deposits accounts are
managed, fill out the evaluation questionnaire of the internal
control system.
2.2 After having performed the compliance tests, analyse the
results and adjust (if necessary) your answers on the
evaluation questionnaire. Fill out the conclusion on the
control risk.
3.0 COMPLIANCE TESTS AND SUBSTANTIVE PROCEDURES
BY TYPE OF TRANSACTION AND/OR DEPOSITS:
3.1 Opening of new deposit accounts
3.1.1 Perform compliance tests: starting with the first account
opened during the year, choose at random few info sheet and
make sure that all information is obtained before the
authorization of the admission
3.2 Monetary operations on the accounts
3.2.1 Make sure the non-integrated subsidiaries’ balances reconcile
with corresponding General Ledger accounts. Explain any
difference.
3.2.2 Perform some compliance tests on the transactions (deposits
and withdrawals) throughout the year ensuring recording in
proper registers/ journal and ledger, and application of
described controls
3.2.3 Pay attention to the transactions made before and after the
year-end (possibility of debit: fraud and credit: lapping) and
trace them to original vouchers
PMC – DID / July 2005 Page 1 of 5

Done References /
by: Commentaries
3.3 Non-monetary operations on the accounts
3.3.1 Proceed to overall examination of non-monetary transactions
on Deposits and find out necessary justification. Check for:
- Code of the accounts
- Rate of interest (frequent changes and important
modifications)
- Minimum balance affecting the interest amount
- Date of last interest payment
Trace certain modifications to original vouchers and make
sure they are adequately supported.
3.3.2 Obtain a classification of Deposits accounts by interest rates
and justify irregular rates if any.
3.4 Dormant accounts
3.4.1 Compare the balance with last year’s.
3.4.2 Select a number of major movements occurred during the
year and trace them to the corresponding vouchers
3.5 Time deposits and/or special Deposits accounts
3.5.1 Compliance tests: select a number of time deposits and check
the accuracy of the certificate (information reflected in the
certificates, signature), the integration data (rate, amount) and
the evidence of approval by authorized person. List the
examined certificates and related account numbers.
3.5.2 Based on the numerical order of the o/s certificates, select a
number of certificates: make sure to trace the sequence either
to the listing of TD or to the cancelled certificates. Examine
corresponding certificates; review their integration and the
required approval. List the examined certificates and related
account numbers.
3.5.3 Check the order of the non-issued certificates. Proceed to a
count on a sampling basis
3.5.4 Non-monetary changes on time deposits: examine carefully
the period immediately after the year-end (mention the period)
and check for any important “back dated”; make sure accrued
interest is well registered.
3.6 Withdrawal of a member
(This type of members is usually not covered by the
confirmation process)
3.6.1 Select some accounts and make sure the procedures
applicable to the withdrawal of members were properly
applied.
3.7 Interest expense on Deposits
3.7.1 Make an analysis of the total interest expense for the year:
comparing the expense expected (obtained through a rough
calculation based on averages) with interest expense
recorded in the accounts
3.7.2 If the previous procedure is not conclusive, proceed to the
examination of recorded transactions in order to justify the
year-end balances (both interest expense and accrued
interest)

Done References /
by: Commentaries
3.8 Positive confirmations
3.8.1 In accordance with the evaluation of the system of internal
control and of the results of the substantive procedures, make
the decision if the amounts confirmed were sufficient and, if
not, send more confirmations
4.0 CONCLUSION
. On my opinion, we have obtained the sufficient (audit
procedures) and adequate (audit objectives) evidence to
formulate an unqualified opinion on this section.
Responsible of the section: ______________________ Date:

_______

SHARE CAPITAL AND DIVIDEND
Audit procedures
1.0 SHARE CAPITAL Done References/Comm

by ents
1.1 Obtain client schedules of share capital.
1.2 Checked the footings of the schedules.
1.3 Trace individual accounts to the subsidiary ledgers.
1.4 Reconcile the total of the schedule with the general ledger
control account.
1.5 Send confirmation on selected individual balances.
1.6 Determine the propriety of presentation on owners equity in

the financial statements.
2.0 INTEREST ON SHARE CAPITAL AND PATRONAGE

REFUND PAYABLE
2.1 Review minutes of the board of directors for any

dividend/patronage refund declarations that have been made.
2.2 On a test basis, check the computation of dividend/patronage

refunds to members.
2.3 Determine total payments made, deduct from total

dividends/patronage refunds payable computed above, and
prove against the balance of dividend liability on a client’s
books.
3.0 CONCLUSION
On my opinion, we have obtained the sufficient (audit
Responsible of the section:______________________

Date:_______
Cooperative : Prepared by: Reviewed by:

Initial Date Initial Date

INCOME AND EXPENSES
Audit procedures
Done References/Comm
by ents
1.0 INCOME
1.1 Analyze revenues accounts
1.2 Vouch on a test basis entries to the revenue accounts. .
1.3 Ascertain that income earned is properly accumulated for.
2.0 EXPENSES
2.1 Analyze the expense accounts
2.2 Examine supporting papers and compare with entries in the
books of accounts.
2.3 Ascertain proper authorization for expenses.
2.4 Ascertain that properly capitalizable expenditures are not
charged to expense and vice-versa.
2.5 Compare expense incurred this year with the approved budget.
2.6 Investigate reasons for variances of the actual expense and the
budget.
2.7 Determine propriety of expense accounts in the financial
statements.
3.0 CONCLUSION
On my opinion, we have obtained the sufficient (audit
Responsible of the section:______________________

Date:_______

Deposits - Audit Program

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Cooperative : Prepared by: Reviewed by:

Initial Date Initial Date

1.0 PRELIMINARY WORK (Planning) Done References /

PMC – DID / July 2005 Page 1 of 5

PMC – DID / July 2005 Page 2 of 5

Responsible of the section: ______________________ Date:

PMC – DID / July 2005 Page 3 of 5

1.0 SHARE CAPITAL Done References/Comm

1.2 Checked the footings of the schedules.

1.3 Trace individual accounts to the subsidiary ledgers.

1.5 Send confirmation on selected individual balances.

1.6 Determine the propriety of presentation on owners equity in

2.0 INTEREST ON SHARE CAPITAL AND PATRONAGE

2.1 Review minutes of the board of directors for any

2.2 On a test basis, check the computation of dividend/patronage

2.3 Determine total payments made, deduct from total

Responsible of the section:______________________

Cooperative : Prepared by: Reviewed by:

PMC – DID / July 2005 Page 4 of 5

Responsible of the section:______________________

PMC – DID / July 2005 Page 5 of 5

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