Audit Program WP Ref.

: PL 7
Prepared by:
Date:
(e) Other Income
Reviewed by
Date
Client:
Period:
Subject: Other Income

Amount in Rs.
Account balances:

Classes of transactions:

S. No. Audit Procedures Audit Assertion Done by W. P. Ref.

Addressed

TEST OF CONTROLS

1 Obtain a sample of investments made

by the company and check that the:

n Investments made are authorised

and in accordance with the
company’s objects.

n Check that the income on the

investments is checked and
accrued on a timely basis

2. For scrap sales check that the sales

are made on the most economic
terms.
S. No. Audit Procedures Audit Assertion Done by W. P. Ref.
Addressed

3. Check that procedures are in place to

ensure that good material is not
transferred to scrap yard.

ANALYTICAL PROCEDURES

Compare current year with prior year

and budgeted amounts to anyalyse the
variation in the expenses. Inquire and
document the reasons for variation

TEST OF DETAILS

1 Review the marketable securities and Existence

related accounts (e.g., interest and
dividend income) in the general
ledger for unusual items.

2 Test accrued interest and interest Valuation and

earned during the period on Measurement
receivables; determine whether
interest should be imputed on long-
term receivables arising during the
period.

3 Verify interest and dividend income Valuation &

on marketable securities, investments, Measurement
and equity in earnings (losses) of
investees by calculating interest
earned or by referring to published
records of dividends paid or to the
financial statements of investees.

4 Verify computations of gains and Measurement

losses from sales of marketable
securities and investments.
S. No. Audit Procedures Audit Assertion Done by W. P. Ref.
Addressed

5 Select a sample of assets retired Existence

during the period and check:

n Authorisation;

n Computation of gain or loss on

disposal of fixed assets

n Timely deletion from fixed

assets records.

6 Select a sample of scrap sales, and Measurement

check for:

n Authorisation;

n Proper recording of gain; and

n Receipt of scrap proceeds.

7 Check that all material items have Presentation &

been presented and disclosed in Disclosure
accordance with the requirements of
Companies Ordinance, 1984 and
IASs.

8 Conclude on the results of work

performed.