Audit Checklist Guide

PICPA QAR Committee Peer
Review Checklist
Checklist for Review of Audit Engagements
Contents
Section
I. General Audit Planning Procedures
Client and Engagement Acceptance and Continuance
Client Understanding
Audit Planning
Fraud Considerations
Information Technology Considerations
Group Audits
Work Performed by a Component Auditor
Auditor's Specialist, If Used
Internal Controls and Control Risks
Service Auditor Reports
Related Party Transactions
Audit Plan
II. Audit Areas
Highest Risk Audit Areas
Cash
Receivables
Inventories
Investments in Securities, Derivative Instruments, and Hedging Activities
Prepaid Expenses and Deferred Charges, etc.
Intangible Assets and Goodwill
Property, Plant, and Equipment
Liabilities
Deferred Credits
Income Taxes
Commitments and Contingencies
Capital Accounts.
Revenue
Expenses
Business Combinations and Consolidations
III. General Audit Procedures
Audit Sampling
Substantive Analytical Procedures
Material Accounting Estimates
Representation Letters
Compliance With Laws and Regulations
Going Concern Considerations
Section
Communication of Internal Control Related Matters
Subsequent Events
IV.
V.
VI.
Communication With Those Charged With Governance

Audit Documentation
Supervision and Review
Auditors Report
Auditors Report.
Explanation of No Answers and Other Comments.
Conclusions.
Explanation of References:
PFRS for
SMes
Philippine Financial Reporting Standards for SMEs
PSA
Philippine Standards on Auditing
CoE
Code of Ethics of Professional Accountants in the Philippines
PSCQ
Philippines Standard on Quality Control
ENGAGEMENT PROFILE
Engagement Code No.
Office
Date of Financial Statements*

Date of Report
Date Report Released
Owner/Partner
Manager
Engagement Quality Control Reviewer
This engagement involves reporting on
financial statements (single entity)
consolidated financial statements
combined financial statements
subsidiary, division, or branch
Is this engagement part of a group audit? Yes
special report
significant deficienciesmaterial weaknesses
other (explain)
No
Were other auditors involved in this engagement? Yes
No
At the time the report or financial statement(s) on the clients current year was issued or released, were there billed or
unbilled fees, or note(s) receivable arising from such fees, that remained unpaid for any professional services
provided more than one year prior to the date of the report? Yes
No
Key data reported on by this office for this engagement:
Total assets
Equity
Net sales
Net income
Major lines of business:
List any non attest services [CoE Section 290] performed for the client during the period of the professional
engagement or the period covered by the financial statements:
Personnel Continuity:
Owner
or
Partner
Manager
or
Equivalent
Number of years assigned to this engagement..................................................................................
Number of years in current position on this engagement..................................................................
To determine the applicability of all cross-referenced pronouncements, consider their effective dates.
Audit hours on this engagement:

Total
Prior to
Commencement
of Field Work
During
Field Work
After
Completion of
Field Work
Owner or Partner
Engagement Quality Control Reviewer
Manager (or equivalent)
Senior/Other Professionals
Total Hours
Describe the engagement teams experience and training relevant to this engagement.
AUDIT ENGAGEMENT RISK ASSESSMENT

This section of the engagement profile should be completed by the engagement partner/manager (or by the reviewer
based on the interview of the engagement team).
1.
Summarize key factors the engagement team considered with regard to the entity, its environment, fraud
risk factors, entity level controls, and how this affected the audit approach.
2.
What are the two to three areas with the highest risk of material misstatement in the financial statements?
Date Engagement Review Performed
Date Checklist Reviewed by Team Captain
Reviewer Signature
Team Captain Signature
Notes: This is a highly summarized checklist. Reviewers may wish to consult the professional standards cited for
detailed information about the requirements. Bullet points are generally batched into one question on this
checklist. The reviewer should weigh each bullet point separately and in the aggregate when concluding
whether the professional standards requirement was met in all material respects. All No answers must be
thoroughly explained.
Complete any applicable supplemental checklists for specialized industries and areas in addition to this
checklist.
I. GENERAL AUDIT PLANNING PROCEDURES

Ques.
Client and Engagement Acceptance and Continuance:

Did the engagement partner perform procedures regarding the acceptance of the client relationship and the specific audit engagement?
[PSA 220.12-13]
N/A
Yes
No
Ref.
A101
If a scope limitation that would lead to a disclaimer was imposed by

management, was the audit required by law or regulation?
[PSA 210.07]
A102
If the auditor succeeded another auditor, did the successor auditor initiate communications with the predecessor auditor to ascertain whether
there were matters that might assist the auditor in determining whether
to accept the engagement? [PSA 210.13]
A103
Did the successor auditor obtain sufficient appropriate audit evidence regarding opening balances about whether opening balances contain misstatements that materially affect the current periods financial statements
and appropriate accounting policies reflected in the opening balances
have been consistently applied? [PSA 510.05-09] Also consider the
following:
A104
If the auditor became aware of information during

the audit that might require revision of prior year
presented financial information, did the auditor
make the required inquiries of the predecessor
auditor?
If anything has been noted that may indicate a lack of independence,

integrity, and objectivity, was the matter identified and appropriately
resolved by the firm and its effects appropriately considered? [CoE 290,
110 and 120] [PSQC 20-25]
A105
Did the member establish and document in writing his or her understanding with the client with regard to specific criteria relating to
nonattest services? [CoE 290.46 - 47] [PSQC 20-25]
A106
Have engagement personnel (including leased and per diem employees)

been appropriately advised of the need to observe applicable independence, integrity, and objectivity requirements concerning the client and
any related non client parent, investor, investee, subsidiary, or affiliate?
[PSQC 20-25]
A107
Were all fees, billed or unbilled, or note(s) receivable arising from such
fees for any professional services provided more than one year prior to
the date of the report paid prior to the issuance of the report for the current engagement? [CoE Sec. 110-150] [PSQC 20-25]
A108
Does it appear the firms guidelines for acceptance and continuance of

client relationships, including performing specific engagements for the
client, were complied with, based on inquiry of the accountant or review
of engagement files, if any? [PSQC 26-28]
A109
Were scheduling and staffing requirements identified on a timely basis

and approved by appropriate personnel? [PSQC 29-31 and PSQC
A18-A31]
A110
The N/A column should be used when the item either does not exist or is not material.
All No answers should be handled in either of the following ways: (1) discussed on a Matter for Further Consideration (MFC) form with the
MFC form number noted in the Ref. column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
Client Understanding:
Did the auditor establish the agreed-upon terms of the audit engagement,
which should be documented in an engagement letter or other suitable
form of written agreement? The agreement should include the following:
[PSA 210.10]
The objective and scope of the audit of the financial statements.
[PSA 210.10a]
The responsibilities of the auditor. [PSA 210.10b]
Yes
No
A111
The responsibilities of management, including managements

acknowledgement of [PSA 210.10c]
the fair presentation of the financial statements in accordance
with the applicable financial reporting framework. [PSA
210.06b(i)]
the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement,
whether due to fraud or error. [PSA 210.06b(ii)]
providing access to all information of which management is
aware that is relevant to the preparation and fair presentation
of the financial statements, such as records, documentation,
and other matters. [PSA 210.06b(iii)(a)]
providing the auditor with additional information that the
auditor may request from management for the purpose of the
audit. [PSA 210.06b(iii)(b)]
providing the auditor with unrestricted access to persons with
the entity from whom the auditor determines it necessary to
obtain audit evidence. [PSA 210.06b(iii)(c)]
A statement that because of the inherent limitations of an audit,
together with the inherent limitations of internal control, an
unavoidable risk exists that some material misstatements may
not be detected, even though the audit is properly planned and
performed in accordance with Philippine Standard on Audit
(PSA)
Identification of the applicable financial reporting framework for
the preparation of the financial statements. [PSA 210.10d]
Reference to the expected form and content of any reports to be
issued by the auditor and a statement that circumstances may
arise in which a report may differ from its expected form and
content. [PSA 210.10e]
Audit Planning:
Did the auditor properly plan the audit, giving appropriate consideration
to the following? [PSA 300] Specifically, did the auditor
involve the engagement partner and other key members of the
engagement team in planning the audit, including planning and
participating in the discussion among engagement team
members? [PSA300.04]
evaluate compliance with relevant ethical requirements? [PSA
300.05b]
A112
Ques.
establish an overall audit strategy that sets the scope, timing, and
direction of the audit and that guides the development of the
N/A
Yes
a
u
d
i
t
Ref.
plan? [PSA 300.06]

in developing the overall audit strategy, did the auditor [PSA
300.07]
identify the characteristics of the engagement that define its
scope [PSA 300.07a];
ascertain the reporting objectives of the engagement in order
to plan the timing of the audit and the nature of the
communications required [PSA 300.07b];
consider the factors that, in the auditors professional
judgment, are significant in directing the engagement teams
efforts [PSA 300.07c];
consider the results of preliminary engagement activities and,
when applicable, whether knowledge gained on other
engagements performed by the engagement partner for the
entity is relevant [PSA 300.07d]; and
ascertain the nature, timing, and extent of resources necessary
to perform the engagement? [PSA 300.07e]
develop an audit plan that includes a description of [PSA
300.08]
the nature and extent of planned risk assessment procedures,
the nature, timing, and extent of planned further audit
procedures at the relevant assertion level, and
other planned audit procedures that are required to be carried
out so that the engagement complies with PSAs?
plan the nature, timing, and extent of direction and supervision of
engagement team members and review of their work? [PSA
300.10]
consider whether specialized skills are needed in performing the
audit?
Did the auditor document the overall audit strategy, the audit plan, and
any changes made during the audit engagement to the overall audit strategy or the audit plan and the reasons for such changes? [PSA 300.11]
Did the auditor consider, prior to the auditors identification and assessment of the risks of material misstatement, such matters as the following: [PSA 300.A3]
The analytical procedures to be applied as risk assessment
procedures?
A general understanding of the legal and regulatory framework
applicable to the entity and how the entity is complying with
that framework?
The determination of materiality?
The involvement of specialists?
The performance of other risk assessment procedures?
If consideration was given to the work of internal auditors in determin

ing the scope of the audit, was it done in accordance with professional
standards? [PSA 610]
No
A113
A114
A115
Ques.
Fraud Considerations:
Ref.
N/A
Did the auditor properly document comp

erations? [PSA 240.44-47] Documentatio
d
i
scussion among engagement personnel in planning the audit

regarding the susceptibility of the entitys financial statements
to material misstatement due to fraud, how management could
per-petrate and conceal fraudulent financial reporting, and how
as-sets of the entity could be misappropriated. [PSA 240.15]
inquiries of management and others within the entity about risks
of fraud. [PSA 240.17.21]
consideration of preliminary analytical procedures, including
procedures specifically related to revenue. [PSA 240.22]
other information obtained that indicates risks of material
misstatement due to fraud. [PSA 240.23]
the identification and the assessment of material misstatement
due to fraud at the financial statement level, and at the assertion
level for classes of transactions, account balances, and
disclosures. [PSA 240.25]
the auditors reasons supporting a conclusion that improper
revenue recognition is not a risk of material misstatement due
to fraud. [PSA 240.26]
the assessed risks of material misstatements due to fraud as
significant risks and, accordingly, to the extent not already done
so, the auditors understanding of the entitys related controls,
including control activities, relevant to such risks, including the
evaluation of whether such controls have been suitably
designed and implemented to mitigate such fraud risks. [PSA
240.27]
the auditors overall responses to address the assessed risks of
material misstatement due to fraud at the financial statement
assertion level. The auditor should incorporate an element of
unpredictability in the selection of the nature, timing, and extent
of audit procedures. [PSA 240.28.30]
Yes
No
Ref.
the auditors identification of managements override of controls as

a significant risk. The risks of managements override of controls
should be addressed apart from any conclusions regarding the
existence of more specifically identifiable risks. Appropriate
procedures should be performed, including testing the
appropriateness of journal entries and other adjustments made in
preparation of the financial statements, review of accounting
estimates for bias, and evaluation of significant transactions that
are outside the nor-mal course of business for the entity. [PSA
240.31.32]
evaluation of the accumulated results of auditing procedures and

whether they affect the assessment of risks of material
misstatement due to fraud made earlier in the audit or indicate a
previously unrecognized risk of material misstatement due to
fraud. [PSA 240.34]
the evaluation of misstatements, whether material or not, and
whether they are indicative of fraud and whether management
was involved. [PSA 240.34.37]
the nature of the communications about fraud made to
management and those charged with governance. [PSA
240.40.42]
the nature of the communications about fraud made to regulatory
and enforcement authorities [PSA 240.43]
Ques.
Information Technology Considerations:

Did the auditor properly identify risks associated with the role of IT? This
could include the following considerations:
A117
N/A
Yes
I
d
e
n
t
i
fication of the role of IT relative to financial transaction and

financial reporting [PSA 315 A49 A55]
Risk of material misstatement associated with financial
transaction and financial reporting [PSA 320]
Obtaining sufficient knowledge of the information system,
including the related business processes relevant to financial reporting [PSA 315 A77 A83]
Obtaining an understanding of how the entity has responded to
risks arising from IT [PSA 315.21]
Identification and assessment of potentially mitigating controls
for those inherent risks, including application and general
computing controls. [PSA 315 A50 - A55]
The firm possesses, either internally or through the use of a
specialist, the required expertise to address the risks associated
with IT.
The auditor, directly or through the use of a specialist,
sufficiently identified and addressed risks associated with IT
and internal controls. [PSA 315]
Did the auditor properly identify and document the linkage between further audit procedures (test of controls and/or substantive procedures) and
the IT risk assessment? [PSA 330] This could include the following:
The auditor documented the understanding of the entity and its
environment. [PSA 315]
The auditor, using a specialist if necessary, used a professional
possessing IT skills to determine the effect of IT on the audit, to
understand the IT controls, or to design and perform tests of IT
controls or substantive procedures.
Group Audits:
Did the auditor appropriately identify the audit as being a group audit
based on the existence of components at the appropriate level of aggregation? [PSA 600.A2.A4]
No
A118
A119
Were appropriate acceptance and continuance procedures performed,

including
A120
considering whether sufficient appropriate audit evidence regarding the consolidation process and the financial information of the
components on which to base the group audit opinion can reasonably expect to be obtained? [PSA 600.12.13]
identification of significant components? A significant component is a component identified by the group engagement team (i)
that is of individual financial significance to the group or (ii) due
to its specific nature or circumstances, is likely to include significant risks of material misstatement of the group financial statements. [PSA 600.12.13]
Did the auditor agree upon the terms of the group audit engagement?
[PSA 600.14]
A121
Ref.
Ques.
Did the group audit team establish an overall group audit strategy and
develop an overall group audit plan? Was the plan approved by the
group engagement partner? [PSA 600.15.16]
A122
Did the auditor obtain an understanding of the entity, including groupwide controls and an understanding of the consolidation process? [PSA
600.17-18]
A123
Did the group engagement team determine component materiality for

those components on which the group engagement team will perform, or
for which the auditor of the group financial statements will assume res
ponsibility for the work of a component auditor who performs, an audit
or a review? [PSA 600.20-23]
A124
Did the group engagement team perform proper procedures related to the
consolidation process in response to the assessed risks of material misstatements of the group financial statements? [PSA 600.32-37]
A125
Work Performed by a Component Auditor:

When the engagement included the work of component auditors, did the
group engagement team obtain an understanding of the following?
(Note: Component auditors may be part of the group engagement partners firm, a network firm, or another firm.) Consider
A126
whether a component auditor understands and will comply with

the ethical requirements that are relevant to the group audit and,
in particular, is independent. [PSA 600.19a]
a component auditors professional competence. [PSA
600.19b]
the extent, if any, to which the group engagement team will be
able to be involved in the work of the component auditor. [PSA
600.19c]
whether the group engagement team will be able to obtain information affecting the consolidation process from a
component auditor.
whether a component auditor operates in a regulatory environment that actively oversees the auditors. [PSA 600.19d]
if the group engagement team evaluated the component auditors
communication, including significant findings or issues arising
from that communication. [PSA 600.42]
If the group engagement partner decided to make reference to the report
of a component auditor
was that decision appropriate?
did the auditors report make appropriate reference to the component auditor in the auditors report of the group financial
statements?
A127
If the group engagement partner is not making reference to the work of a

component auditor, were appropriate procedures performed, including
group engagement team involvement in the work of the component
auditor
A128
N/A
Yes
No
Ref.
Ques.
Auditor's Specialist, If Used:

If an auditors specialist was used (for example, actuary, appraiser, engineer, environmental consultant, or geologist), did the auditor apply the
appropriate procedures to evaluate the qualifications and findings of the
specialist? Consider whether
appropriate considerations and evaluations were made in
accordance with professional standards. [PSA 620.0811]
the evaluation of objectivity included the inquiry regarding
interests and relationships that may create a threat to the
objectivity of the auditors specialist. [PSA 620.09]
appropriate procedures were applied to evaluate the adequacy of
the work of the specialist. [PSA 620.12]
appropriate procedures were applied to test the source data used
by the specialist. [PSA 620.12c]
A129
Service Auditor Reports:

If the auditor is relying on a service auditors report, did the auditor
substantively meet professional requirements regarding internal control
by
A131
considering the controls at a service organization that may affect
the clients transactions and internal control? [PSA 402.0914]
Yes
No
Internal Control and Control Risks:

When developing an understanding of the entity and its environment
relative to evaluation of the risk of material misstatements and the response to the audit evidence obtained, did the auditor
A130
perform risk assessment procedures, including inquiries of management and others within the entity, analytical procedures, and
observation and inspection? [PSA 315.0510]
obtain an understanding of the entity and its environment and
components of its internal control in order to assess the risks of
material misstatements at the assertion level and to design and
perform further audit procedures responsive to assessed risks?
[PSA 315.1223]
understand the auditors responsibility to identify and assess the
risks of material misstatement at the financial statement level
and at the relevant assertion level related to classes of transactions, account balances, and disclosures? [PSA 315.2425]
identify significant risks and obtain an understanding of the entitys controls, including control activities, relevant to those risks,
and, based on that understanding, evaluate whether such controls
have been suitably designed and implemented to mitigate such
risks? [PSA 315.2628]
assess that it is not possible or practicable to obtain sufficient
appropriate audit evidence only from substantive procedures
related to some risks? If so, did the auditor obtain an understanding of the entitys controls over such risks? [PSA 315.29]
design and perform substantive procedures for all relevant assertions related to each material class of transactions, account balances, and disclosure? [PSA 330.1824]
N/A
Ref.
Ques.
obtaining an understanding of the controls in place at the entity

and at a service organization whose services are part of the
entitys information system? [PSA 402.03]
performing one or more of the following in order to obtain audit
evidence about the operating effectiveness of the service
organizations controls if the auditors risk assessment includes
an expectation that those controls are operating effectively?
Obtaining and reading the type 2 report [PSA 402.16a]
Performing appropriate tests of controls at the service
organization [PSA 402.16b]
Using another auditor to perform tests of clients controls at
the service organization on behalf of the user auditor [PSA
402.16c]
Determining whether the service auditors report provides
sufficient appropriate audit evidence about the effectiveness
of the controls to support the user auditors risk assessment,
if the user auditor plans to use a type 2 report as audit
evidence that controls at the service organization are
operating effectively [PSA 402.17]
Related Party Transactions:
Did the auditor [PSA 550]
obtain and document an understanding of related party
relationships and transactions to identify and assess the risks of
material misstatement?
share the identity of related parties and other relevant
information with the engagement team? [PSA 550.17]
obtain sufficient audit evidence about whether related party
relationships and transactions have been appropriately
identified, accounted for, and disclosed in the financial
statements?
Audit Plan:
Did the auditor properly consider and document the following in the
development of the audit plan and strategy and completion of the audit
programs, when applicable? [PSA 300.17-19; Consider that
the overall audit strategy is a record of the key decisions
considered necessary to properly plan the audit, and significant
is-sues were communicated to the engagement team. [PSA
300.21]
the audit plan is a record of the planned nature, timing, and
extent of risk assessment procedures and further audit
procedures at the relevant assertion level in response to the
assessed risks. [PSA 300.22]
A132
A133
N/A
Yes
No
Ref.
II. AUDIT AREAS

Highest Risk Audit Areas
Consider the firms risk assessments identified in the engagement profile and your review of the financial statements
and planning documentation to identify, in column 1 that follows, the highest risk audit areas to be reviewed.
Ordinarily, a scope of at least three areas is expected. Risk area selection is a matter of professional judgment, which
may include consideration of the scope and results of other engagements evaluated in the peer review.
Review the planning and risk assessment documentation for each risk area selected. Indicate your assessment of the
firms performance related to elements in columns 24. [PSA 300315]
Highest Risk
Audit
Areas1
(1)
Adequate
Audit Risk
Identification?
(2)
Yes
No
Adequate
Planned Audit
Response?
(3)
Was the Risk

Assessment
Adequately
Documented?
(4)
Yes
Yes
No
No
Audit Area
Cash
Receivables
Inventories
Investments, Derivatives,
and Hedging Activities
Prepaid Expenses and
Deferred Charges
Intangible Assets
(Including Goodwill)
Liabilities
Deferred Credits
Income Taxes
Capital Accounts
Revenue
Expenses
Business Combinations and
Consolidations
If any No answers are identified in the preceding matrix for which a Matter for Further Consideration
(MFC) form was not generated, include an explanation in Section V, Explanation of No Answers and Other
Comments.
Indicate with a checkmark.
Review the work performed in the highest risk audit areas identified in the matrix and complete only those sections of
the subsequent checklist. In the audit areas reviewed, indicate whether the reviewed firm has obtained sufficient
competent evidential matter to form conclusions concerning the validity of the assertions of material significance
embodied in the financial statements as described in PSA section 500, Audit Evidence.
Ques.
N/A
Yes
No
Ref.
Cash
Selected audit area
Does the audit documentation indicate that the following were considered? [PSA 500, 505, 230]
Confirmation of cash balances
Restrictions on cash balances
A201
Confirmation of bank credit arrangements, such as compensating

balances
Confirmation of liabilities and contingent liabilities to banks
Were reconciling items cleared by reference to subsequent statements
obtained either directly from the bank or from the client and appropriately tested?
A202
Was due consideration given to cash transactions shortly before and

shortly after the balance sheet date to determine whether they were recorded in the proper period?
A203
Was adequate work performed and documented to support the conclusions about this audit area?
A204
Receivables
Selected audit area
Were accounts receivable confirmed and appropriate follow-up steps
taken, including second requests and alternative procedures? [PSA
505.07 and .10.14]
A205
If accounts receivable confirmations were not requested, has the auditor

documented how the presumption for such requests was overcome, and
were the reasons appropriate?
A206
If confirmation work was performed prior to year end, is there evidence

that adequate substantive procedures were applied to the period from the
confirmation date to the balance sheet date?
A207
In the case of each nonresponse to confirmations, is there evidence that

alternative auditing procedures were performed to obtain relevant and
reliable audit evidence? [PSA 505.12]
A208
Were significant notes receivable confirmed as of a date consistent with

the auditors assessment of inherent, control, and detection risks? [PSA
330.0607]
A209
Were the results of confirmation and alternative procedures summarized,

and were appropriate conclusions included in the audit documentation?
[PSA 230.08]
A210
MFC form number noted in the Ref. column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated .
Ques.
Was collateral (if any) for receivables tested with respect to existence,
ownership, and value?
A211
N/A
Yes
Were adequate tests of discoun

Was the reasonableness of allo
the audit documentation and co
sidered? [PSA 540.1214]
Is there evidence in the audit documentation that inquiry was made and
consideration given to whether receivables are sold, pledged, assigned, or
otherwise encumbered?
Was receivable work coordinated with the tests of revenue, including cutoff tests?
No
A214
Ref.
A215
A216
Inventories
Selected audit area
Did the auditor apply appropriate procedures with respect to inventory?
Consider the following:
A217
When the physical inventory counting is conducted at a date other
than the date of the financial statements, does the audit
documen-tation provide evidence that changes in inventory
between the count date(s) and the date of the financial
statements were recorded correctly? [PSA 501.05]
Does the audit documentation contain evidence that the auditor
attended physical inventory counting, unless Impracticable, and
performed audit procedures over the entitys final inventory
records to determine whether they accurately reflect actual
inventory count results? [PSA 501.04]
If the auditor is unable to attend physical inventory counting due
to unforeseen circumstances, did the auditor make or observe
some physical counts on an alternative date and perform audit
procedures on intervening transactions? [PSA 501.06]
When physical inventory in the hands of others was not observed,
were inventory confirmations received or other appropriate
procedures performed (for example, inventory in public
warehouses, on consignment)? [PSA 501.08]
If perpetual inventory records are maintained, does the audit documentation indicate that differences disclosed by the physical inventory (or cycle counts) are properly reflected in the accounts?
[PSA 501.A09-A10]
Does the audit documentation indicate that there were adequate
tests of
the clerical accuracy of the inventory?
costing methods and substantiation of costs used in pricing all
elements (raw materials, work in progress, finished goods) of
the inventory?
inventory valuation, (for example, lower of cost or market, first
in, first out, last in, first out) (including consideration of
obsolete or slow-moving inventory)?
were the results of inventory observations and other tests
summarized, and were appropriate conclusions drawn?
Ques.
Were inquiries concerning purchase and sales commitments made, including consideration of any possible adverse effects?
A218
Were appropriate inventory cut-off tests performed? [PSA 501.A4-A5]

.
A219
Does the audit documentation indicate that steps were performed to

determine if any inventory is pledged? [PSA 501.A16]
A220
A221
N/A
Investments in Securities, Derivative I

Hedging Activities
Selected audit area
For investments in securities, derivative

ties, did the auditor obtain an understand
trol sufficient to
i
d
e
n
t
ify the types of potential misstatements of specific financial

statement assertions (existence, completeness, rights and
obligations, valuation, and presentation and disclosure)? [PSA
315.25]
Yes
No
consider factors that affect the risk that the misstatements would
be material to the financial statements? [PSA 315.25]
design tests of controls, when applicable, and design substantive
tests? [PSA 330.06-07]
For derivative instruments and securities measured at fair value, consider
the following:
A223
The auditor should determine whether the applicable financial

reporting framework specifies the method to be used to
determine the fair value derivative instruments and investments
in securities and evaluate whether the determination of fair value
is consistent with the specified valuation method
If estimates of fair value of derivative instruments or securities are
obtained from broker-dealers or other third-party sources based
on valuation models, the auditor should understand the method
used by the broker-dealer or other third-party source in
developing the esti-mate.
If derivative instruments or securities are valued by the entity
using a valuation model, the auditor should obtain sufficient
appropriate audit evidence supporting managements assertions
about fair value determined using the mode.
For impairment losses, the auditor should evaluate managements
conclusion about the need to recognize an impairment loss for a
decline in a securitys fair value below its cost or carrying
amount and obtain sufficient appropriate audit evidence
supporting the amount of any impairment adjustment recorded,
including evaluating whether the requirements of the applicable
financial reporting framework have been complied with.
Ques.
For unrealized appreciation or depreciation on derivatives, the

auditor should obtain sufficient appropriate audit evidence about
the amount of unrealized appreciation or depreciation in fair
value of a derivative that is recognized or disclosed because of
the ineffectiveness of a hedge, including evaluating whether the
requirements of the applicable financial reporting framework
have been complied with.
A224
N/A
Yes
f
i
n
a
n
c
i
n
g
,
d
i
d
Prepaid Expenses and Deferred Charges, etc.

t
h
e
Selected audit area

Were adequate tests made for all material prepaid expenses, deferred
charges, and other prepaid items?
Were reviews made for the deferral and amortization (or lack thereof) of
these types of assets?
If insurance policies were pledged as collateral or subjected to premium
A225
A226
a
u
d
i
Ref.
tor consider whether the accounting for the related

loans was appropriate?
A227
A228
Intangible Assets and Goodwill

Selected audit area
Were adequate tests made for all material intangible assets, including
goodwill?
A229
Were reviews made of the continuing value and possible impairment of

goodwill and other intangible assets? [PFRS for SMEs Sec. 18, Intangibles and Goodwill]
A230
A231

Selected audit area
Do the tests appear adequate, and were proper conclusions drawn with
respect to the reporting and disclosure of property, plant, and equipment?
A232
Additions (for example, by examining supporting documents or
physical inspection)
Retirements (including examining miscellaneous income, scrap sales)
The adequacy of the current and accumulated provisions for
depreciation and depletion
Consideration of asset impairment, including the status of idle
facilities [PFRS for SMEs Sec 17, Property, Plant and
Equipment]
Does the audit documentation indicate that the auditor considered whether property was subject to liens?
No
A233
Ref.
Were accounts payable tested adequately

Ques.
Have leases been reviewed to determine that capital, operating, sales, and
direct financing leases have been properly accounted for? [PFRS for SMEs
Sec. 2, Leases]
A234
Liabilities
Selected audit area
A235
N/A
Was an adequate search performed for u

ance sheet date?
Does the audit documentation contain su

tests of liabilities recognized for claims
balance sheet date?
Was the payables work coordinated with

off?
Were significant notes and bonds payabl

repayment periods, confirmed, or alterna
Does the audit documentation indicate that the auditor reviewed compliance with the covenants of the enterprises debt obligations?
A241
A242
Yes
No
Ref.
Yes
No
Ref.
Deferred Credits
Selected audit area
Does the audit documentation indicate that deferrals have been established on a reasonable basis and consistently applied?
A243
A244
Income Taxes [PFRS fot SMEs, Sec 29, Income Taxes]

Selected audit area
Were the current and deferred tax accrual accounts and related provisions
analyzed and appropriate auditing procedures applied?
A245
Were adequate auditing procedures performed regarding the adequacy of

the valuation allowance related to any deferred tax assets?
A246
Does the audit documentation contain evidence that, when determining

the adequacy of the income tax accruals and provisions, appropriate consideration was given to possible adjustments required for
tax positions taken by the client that might be challenged by the
taxing authorities and/or other tax contingencies?
possible assessments, penalties, or interest, including similar adjustments to years not yet examined?
A247
A248
A249
Ques.

Selected audit area
Does the audit documentation contain evidence of the following:
Inspection of minutes of meetings of the stockholders, board of
directors, and executive and other committees of the board?
Inspection of contracts, loan agreements, leases, and correspondence from taxing and other governmental agencies, and similar
documents?
Procedures regarding other contingent liabilities (such as buy/sell
agreements)?
A250
A251
A252
A253
Capital Accounts
Selected audit area
Were changes in capitalization checked to authorizations?
If applicable, was confirmation received from the registrar, or was
examination made of stock certificate records?
Does the audit documentation indicate that there were adequate
inquiries and review of applicable documents, if necessary,
regarding stock options, warrants, rights, redemptions, and
conversion
A254
A255
N/A
privileges?
A256
A257
Revenue
Selected audit area
Were appropriate analytical procedures used in substantive tests of revenue and expenses for the period? [PSA 520]
A258
Was revenue properly recognized and reported? [PFRS for SMEs, Sec 23,
Revenue
Recognition] Consider the following:
A259
The clients revenue recognition policy [PFRS for SMEs Sec 23.8-23.29]
Income recognition on transactions in which the earnings process
was not complete
Unusual sales transactions
Income recognition when the right of return exists [PFRS for
SMEs, Sec. 23.12]
Were substantive analytical procedures performed on revenue using disaggregated data? [PSA 520.A15]
A260
A261
Expenses
Selected audit area
Were tests of payrolls, including account distribution, made when appropriate?
A262
Ques.
Do the tests of the pension and profit-sharing (including the effects of the
Employee Retirement Income Security Act of 1974) expenses and liabilities appear adequate? [PFRS for SMEs, Section 28, Employee Benefits]
A263
If substantive analytical procedures were performed on revenue, was the
analysis based on disaggregated data to gain greater precision, as appropriate? [PSA 520.A15]
A264
A265
Business Combinations and Consolidations

Selected audit area
If consolidated statements are presented
have intercompany balances and transactions been eliminated?
[PFRS for SMEs Sec. 9.15 Consoldated Financial Statements]
was recognition given to the effects of intervening events that materially affect financial position, results of operations, or cash
flows, if the financial reporting periods of one or more subsidiaries differ from that of the parent? ]
has the auditor appropriately audited opening balances related to
business acquisitions that took place during the year?
has the auditor tested the clients analysis of potential variable
interest entities and concluded on the proper inclusion or exclu-
A266
A267
A268
N/A
Yes
No
Ref.
sion of the variable interest entities in the companys financial

statements?
A269
A270
III. GENERAL AUDIT PROCEDURES

Ques.N/A
Audit Sampling:
Did the auditor consider the following, with regard to audit sampling:
The purpose of the audit procedure, and the characteristics of the
population from which the sample will be drawn, when
designing the audit sample? [PSA 530.06]
Did the auditor determine the sample size sufficient to reduce
sampling risk to an acceptably low level? [PSA 530.07]
Did the auditor select items for the sample in such a way that the
auditor can reasonably expect the sample to be representative of
the relevant population and likely to provide the auditor with a
reasonable basis for conclusions about the population? [PSA
530.08]
If the auditor was unable to apply the designed audit procedures,
or suitable alternative procedures to a selected item, was the
item treated as a deviation from the prescribed control (in the
case of tests of controls) or a misstatement (in the case of tests
of details)? [PSA 530.11]
Did the auditor project the results of audit sampling to the
population? [PSA 530.14]
Did the auditor evaluate the results of the sample, including
sampling risk, and whether the use of audit sampling has
provided a reasonable basis for conclusions about the
population that has been tested? [PSA 530.15]
A301
Yes
No
Ref.
Substantive Analytical Procedures:

If the auditor used analytical procedures as substantive procedures, did
the auditor properly consider professional guidelines regarding such procedures? [PSA 520] Did the auditor
determine the suitability of particular substantive

analytical procedures for given assertions, taking into
account the assessed risks of material misstatement and
test of details for these assertions? [PSA 520.05a]
evaluate the reliability of data from which the auditors

expectation of recorded amounts or ratios is developed?
[PSA 520.05b]
develop an expectation of recorded amounts or ratios

and evaluate whether the expectation is sufficiently
precise to identify a mis-statement that, individually or
when aggregated with other mis-statements, may cause
the financial statements to be materially misstated?
[PSA 520.05c]
determine the amount of any difference of recorded

amounts from expected values that is acceptable
without further investigation and compare the recorded
amounts with expectations? [PSA 520.05d]
A302
Ques.
d
i
s
c
l
o
s
u
r
e
s
.
N/A
investigate differences, when the auditor identifies fluctuations or

relationships that are inconsistent with other relevant
information or that differ from expected values by a significant
amount, by [PSA 520.07]
inquiring of management and obtaining appropriate audit
evidence relevant to managements responses and
performing other audit procedures, as necessary?
document the following [PSA 230.08 11]

The expectation of recorded amounts or ratios and the factors
considered in its development when not readily determinable
from the audit documentation?
The results of comparison of recorded amounts to
expectations?
Additional auditing procedures performed relating to the
investigation of fluctuations or relationships that are
inconsistent with other relevant information or that differ
from expected values by a significant amount and the results
of such additional procedures?
Material Accounting Estimates:

Did the auditor properly consider and document the procedures applied to
material accounting estimates, when applicable? Consider the following: A303
The auditor should obtain an understanding of the following in
order to provide a basis for the identification of the risks of
material misstatement for accounting estimates: [PSA 540.08]
The requirements of the applicable financial reporting framework relevant to accounting estimates, including related
[
P
S
A
5
4
0
.
0
8
a
]
H
o
w
management identifies those transactions, events, and

conditions that may give rise to the need for accounting
estimates to be recognized or disclosed in the financial
statements. [PSA 540.08b]
How management makes the accounting estimates and data on
which they are based. [PSA 540.08c]
The auditor should review the outcome of accounting estimates
included in prior period financial statements or, when
applicable, their subsequent re estimation for the purpose of the
current period. [PSA 540.09]
When responding to the assessed risks of material misstatement,
the auditor should [PSA 540.13]
determine whether events occurring up to the date of the
auditors report provide evidence regarding the accounting
estimate, [PSA 540.13a]
test how management made the accounting estimate and the
data on which it is based, [PSA 540.13b]
test the operating effectiveness of the controls over how
management made the accounting estimate, together with
appropriate substantive procedures, and [PSA 540.13c]
develop a point estimate or range to evaluate managements
point estimate. [PSA 540.13d]
Yes
Ques.
If management has not adequately addressed the effects of

estimation uncertainty on the accounting estimates that give rise
to significant risks, the auditor should, if considered necessary,
develop a range with which to evaluate the reasonableness of
the accounting estimate. [PSA 540.16]
Representation Letters:
Did the auditor obtain written representations from management with appropriate responsibilities for the financial statements and knowledge of the
matters concerned? [PSA 580] Consider the following:
A304
The representation letter was properly dated and covered all
periods referred to in the auditors report. [PSA 580.14]
The letter contains an acknowledgement that management has
fulfilled its responsibility for preparation and fair presentation of
the financial statements and for internal controls relevant to the
preparation and fair presentation of the financial statements.
[PSA 580.10]
The letter acknowledges that management has provided the
auditor with all relevant information and access, and all
transactions have been recorded and are reflected in the
financial statements. [PSA 580.11]
The letter disclosed managements representations related to the
following [PSA 580.13]
Fraud
Laws and regulations
Litigation and claims
Related party transactions
Subsequent events
The letter provides representations about whether management
N/A
Yes
No
b
e
l
i
e
v
e
s
t
h
e
e
f
f
e
c
t
s
o
f
u
n
c
o
r
r
e
c
t
e
d
Ref.
misstatements are immaterial to the financial statements as a

whole. A summary of such items should be included, or attached
to, the written representation. PSA 450.14
If the auditor determines that it is necessary to obtain one or more
written representations to support other audit evidence relevant
to the financial statements or more specific assertions in the
financial statements, the auditor should request such other
representations. [PSA 580.A12]
Did the auditor obtain timely and appropriate responses from the entitys
attorneys concerning litigation, claims, and assessments or document the
consideration that it was not necessary to do so? [PSA 501.10]
A305
Compliance With Laws and Regulations:

Did the auditor inspect correspondence, if any, with relevant licensing or regulatory authorities? [PSA 250.14b]
A306
If the auditors procedures disclosed instances or indications of noncompliance with laws and regulations, did the auditor apply procedures and
evaluate the results of those procedures in accordance with professional
standards? [PSA 250] Consider the requirements for the auditor to
A307
No
Ref.
Ques.
follow up in accordance with professional standards. [PSA

250.18.20]
report the noncompliance with laws and regulations to those
charged with governance in accordance with professional standards. [PSA 250.22.24]
document a description of the identified or suspected noncompliance with laws and regulations and the results of discussions
with management and, when applicable, those charged with
govern-ance and other parties inside or outside the entity. [PSA
250.29]
Going Concern Considerations:
Did the auditor consider if there was substantial doubt about the entitys
ability to continue as a going concern for a reasonable period of time?
[PSA 570.06.07]
A308
If the auditor believed that there was substantial doubt about the entitys
ability to continue as a going concern for a reasonable period of time, did
the auditor perform appropriate procedures? Consider if
The auditor shall consider whether there are events or conditions that may
cast significant doubt on the entitys ability to continue as a going concern.
Consider if:
A309
the auditor obtained information about managements plans that
are intended to mitigate the effect of such conditions or events
and evaluate the likelihood that such plans could be
implemented effectively. obtained information whether the
management has already performed a preliminary assessment of
the entitys ability to continue as a going concern [PSA 570.07
10]
if such assessment has been made, the auditor shall discuss
with the management and determine whether the management as
identified events or conditions that, individually or collectively,
may cast significant doubt of the entitys ability to continue as a
going concern, and of the management plans to address them;
if such assessment has not yet been performed, the auditor
shall discuss with management the basis of for the intended use of
the going concern assumption, and inquire of management
Whether conditions or events exist that, individually or
collectively, may cast significant doubt of the entitys ability to
continue as a going concern.
the auditor documented

the conditions or events that led to the belief that there is
substantial doubt about the entitys ability to continue as a
going concern for a reasonable period of time.
the elements of managements plans that the auditor
considered to be particularly significant to overcoming the
adverse effects of the conditions or events.
the auditing procedures performed and evidence obtained in
connection with the auditors evaluation of managements
plans.
the auditors conclusions about whether substantial doubt
about the entitys ability to continue as a going concern for a
reasonable period of time remains or is alleviated.
the consideration and effect of the auditors conclusion on the
financial statements, disclosures, and the audit report.
N/A
Yes
No
Ref.
the auditors substantial doubt was alleviated, the auditor

considered the need for disclosure of the principal conditions
and events that initially caused the auditor to believe there was
substantial doubt together with the mitigating factors.
the auditors substantial doubt was not alleviated, the auditors report included an emphasis-of-matter paragraph that adequately
reflects that conclusion. The auditors conclusion should be expressed through the use of the terms substantial doubt and
going concern.
the auditor covered the same period as that used by the
management to make its assessment as required by the
applicable financial reporting framework, or by law or
regulation, it os specifies a longer period, in assessing the
entitys ability to continue as a going concern. [PSA 570.13]
the auditor inquired to the management as to its knowledge of
events or conditions beyond the period of managements
assessment.
Ques.
A310
managements plans that are intended to mitigate the adverse
effects of conditions or events that indicate there is substantial
doubt about the entitys ability to continue as a going concern
for a reasonable period of time and the likelihood that those
plans can be effectively implemented, and
a statement that the financial statements disclose all the matters of
which management is aware that are relevant to the entitys
ability to continue as a going concern, including principal
conditions or events and managements plans?
deficiencies in internal control were identified during the audit, the

auditor performed an evaluation of each deficiency to determine, on
the basis of the work performed, if the deficiencies constituted
significant deficiencies or material weaknesses. [PSA 265.07-08]
prudent officials, having knowledge of the same facts and

circumstances, would likely reach the same conclusion as the
auditors classification of the control deficiencies (for instance,
material weakness, significant deficiency, or control deficiency).
other deficiencies in internal control identified during the audit
that have not been communicated to management by other
parties and that, in the auditors professional judgment, are of
sufficient importance to merit managements attention. If other
deficiencies in internal control are communicated orally, the
auditor should document the communication. [PSA 265.12b]
control deficiencies were determined to be significant
deficiencies or material weaknesses, they were communicated in
writing to management and those charged with governance
within 60 days following the audit report release date unless it
would be inappropriate to communicate directly to management
in the circumstances. [PSA 265.10a]
the auditor complied with the requirement not to issue a written
report stating that no significant deficiencies were identified
during an audit.
Yes
Did the written representations from management include
Communication of Internal Control Related Matters:

Did the auditor report matters relating to the internal control to management and those charged with governance? [PSA 265] Consider if
N/A
Did the written communication re

terial weaknesses include or state
T
h
e
p
u
r
p
o
s
e
A311
o
f
t
h
e
a
u
d
i
t
w
a
s
t
o
e
x
p
r
ess an opinion on the financial statements, but not to express an

opinion on the effectiveness of the entitys internal control over
financial reporting?
The auditor is not expressing an opinion on the effectiveness of

internal control?
The definition of the term material weakness and, when relevant,
significant deficiency?
An explanation of potential effects of any significant deficiencies
or material weaknesses?
An appropriate alert restricting the use of the communication
No
Ref.
a
d
e
s
c
r
i
p
t
i
o
n
o
f
t
h
e
d
e
f
i
c
i
e
n
c
i
e
s
a
n
d
e
x
p
l
a
n
a
t
i
o
n
o
f
their potential effects;

sufficient information to enable those charged with governance
and management to understand the context of the
communication, explaining that (i) the purpose of the audit was
for the auditor to express an opinion on the financial statement,
(ii)the audit included consideration of internal control relevant
to the preparation of the financial statements, and (iii) the
matters being reported are limited to those deficiencies the
auditor has identified during the audit and that the auditor as
concluded are of such sufficient importance to merit being
reported to those charged with governance.
Ques.
Subsequent Events:
Did the auditor consider information and apply appropriate professional
guidance with respect to events occurring subsequent to the date of the
audit report? [PSA 560] Consider the following:
A313
The auditor considered appropriate procedures regarding events

subsequent to the balance sheet date through the date of the
auditors report. [PSA 560.0607]
The auditor gave appropriate consideration to additional evidence
that becomes available prior to the issuance of the financial
statements after the date of the auditors report but before the
date the financial statements are issued. [PSA 560.1013]
If the auditor became aware, subsequent to the report date
issuance of financial statements, of information that may have
existed at the report date and that might have affected the audit
report on the financial statements had the auditor then been
aware of such information, the auditor considered the guidance
in professional standards in determining an appropriate course
of action and the matter appears to be properly resolved. [PSA
560.1417]
If there is an indication that the auditor concluded that one or more
auditing procedures considered necessary at the time of the audit of
the financial statements in the circumstances were omitted from the
audit, the auditor considered the guidance in professional standards
in determining an appropriate course of action and the matter
appears to be properly resolved.
Communication With Those Charged With Governance:

Did the auditor substantively meet the professional standards regarding
auditor communications as follows:
A314
Properly determine the appropriate persons within the audited
entitys governance structure with whom to communicate? [PSA
260.0709]
Communicate the following matters to those charged with
governance, when applicable:
The auditors responsibilities for forming and expressing an
opinion on the financial statements under the applicable
financial reporting framework, and that the audit does not
relieve management or those charged with governance of
their responsibilities? [PSA 260.10]
An overview of the planned scope and timing of the audit?
[PSA 360.11]
The auditors views about qualitative aspects of the entitys
significant accounting practices? [PSA 260.12a]
Any significant difficulties encountered during the audit?
[PSA 260.12b]
Any disagreements with management? material weaknesses, if
any, in the design implementation or operating effectiveness of
N/A
i
n
t
e
r
n
a
l
c
o
n
t
r
o
l
t
h
a
t
h
a
v
e
c
o
m
e
t
o
t
h
e
a
u
d
i
t
o
r
s
a
t
t
ention and communicated with management [PSA 260.12c]

Other findings or issues significant and relevant to those
charged with governance regarding their responsibility to
over-see the financial reporting process? [PSA 260.12d]
Yes
No
Ref.
U
n
c
o
r
r
e
c
t
e
d
m
i
s
s
t
a
t
e
m
e
n
t
s
a
n
d
t
h
e
e
f
f
e
c
t
t
h
e
y
m
a
y
have on the auditors report? The auditor should identify

material uncorrected misstatements individually and request
that they be corrected.
No
Ques.
The effect of uncorrected misstatements related to prior

periods?
Material, corrected misstatements that were brought to the
attention of management as a result of audit procedures?
[PSA 260.12c]
Any significant findings or issues arising from the audit that
were discussed or communicated to management?
[PSA 260.12c]
Managements consultation with other accountants, if any?
Representations the auditor has requested from management?
Communicate the form, timing, and expected general content of
the auditors communication with those charged with
governance? [PSA 260.14]
Communicate, in a timely manner, and in writing, the significant
audit findings when, in the auditors judgment, oral
communication would not be adequate and include in the
written communication that it is intended solely for the
information and use of those charged with governance and
management and is not intended to be, and should not be, used
by anyone other than these specified parties? [PSA 260.1516]
Consider whether the two-way communication between the auditor
and those charged with governance was adequate, and if not,
evaluate the effect, if any, on the auditors assessment of the risks
of material misstatement and ability to obtain sufficient appropriate
audit evidence and take appropriate action? [PSA 260.18]
Document whether the information was communicated and if the

communication was oral, include when and to whom it was
communicated? [PSA 260.19]
Audit Documentation:
Has the auditor prepared and maintained audit documentation in accordance with professional standards? [PSA 230] Consider the following
requirements:
A315
The audit documentation provides evidence of the auditors basis
for a conclusion about the achievement of the overall objectives
of the auditor and evidence that the audit was planned and
performed in accordance with PSA and applicable legal and
regulatory requirements. [PSA 230.02]
The audit documentation is sufficient to enable an experienced
auditor having no previous connection to the audit to understand
the nature, timing, and extent of procedures performed; results
of the procedures performed; audit evidence obtained; and
significant findings or issues arising during the audit, the
conclusions reached thereon, and significant professional
judgments made in reaching those conclusions. [PSA 230.08]
In documenting the nature, timing, and extent of audit procedures
performed, the auditor should record [PSA 230.09]
the identifying characteristics of the specific items or matters
tested, [PSA 230.09a]
N/A
Yes
Ref.
Ques.
who performed the audit work and the date such work was
completed, and [PSA 230.09b]
who reviewed the audit work performed and the date and extent of such review. [PSA 230.09c]
For audit procedures related to the inspection of significant contracts or agreements, the auditor should include abstracts or copies of those contracts or agreements in the audit documentation.
[PSA 230 A3]
The auditor should document discussions of significant findings
or issues with management, those charged with governance, and
others, including the nature of significant findings or issues discussed and when and with whom the discussions took place.
[PSA 230.10]
If the auditor departs from a presumptively mandatory PSA
requirement, the auditor documented the justification for the
departure and how other procedures performed in the
circumstances were sufficient to achieve the intent of that
requirement. [PSA 230.12]
If the auditor performs new or additional audit procedures or
draws new conclusions after the date of the auditors report, the
auditor should document the circumstances encountered; the
new or additional procedures performed, audit evidence
obtained, and conclusions reached, and their effect on the
auditors report; and when and by whom the resulting changes
to audit documentation were made and reviewed. [PSA 230.13]
The auditor should document the report release date in the audit
documentation.
The auditors documentation was consistent with the assembling
of the engagement documentation file and completion of the
administrative process of assembling the audit file on a timely
basis, no later than 60 days following the report release date.
[PSA 230.14]
The auditors documentation established reasonable procedures
for retention of, and access to, audit documentation for a period
of at least five years. The auditor shall not delete or discard
audit documentation of any nature before the end of its retention
period [PSA230.15, PSQC 47]
If the auditor finds it necessary to modify existing audit
documentation or add new audit documentation after the
documentation completion date, the auditor should document
the specific reasons for making the change and when and by
whom they were made and reviewed. [PSA 230.16]
The auditor should adopt reasonable procedures to maintain the
confidentiality of client information.
A record of the significant changes to the overall strategy and
audit plan and resulting changes to the planned nature, timing,
and extent of audit procedures explain why the significant
changes were made and why the overall strategy and audit plan
were finally adopted for the audit. It also reflects the appropriate
response to the significant changes occurring during the audit.
[PSA 300.A19]
N/A
Yes
No
Ref.
No
Ques.
Were appropriate procedures applied to accompanying supplementary

information and required supplementary information?
A316
For the engagement, did the personnel adequately complete all forms,
checklists, or questionnaires, if applicable, required by firm policy for
the following areas? [PSQC 3247 and PSQC A32.A63]
A317
Work program
Disclosure and reporting checklist
Working paper and financial statement reviews
If standardized forms were not used for any of the preceding areas, is
there adequate documentation of these areas? [PSQC 3247 and PSQC
A32.A63]
A318
Were the firms guidelines for the form and content of working papers
complied with? [PSQC 3547 and PSQC A32A63]
A319
Supervision and Review:

Did the engagement partner take responsibility for the following: [PSA
220.15]
The direction, supervision, and performance of the audit engagement in compliance with professional standards, applicable legal
and regulatory requirements, and the firms policies and procedures?
The auditors report being appropriate in the circumstances?
Ref.
N/A
Yes
N/A
cies to assign management responsibilitie

tions did not override the quality of work
and procedures that address performance
advancement (including incentive system
in order to demonstrate the firms overar
A320
Did the engagement partner take responsibility for reviews being performed in accordance with the firms review policies and procedures?
[PSA 220.16]
A321
Did the engagement partner, through review of the audit documentation

and discussion with the engagement team, determine that sufficient appropriate audit evidence was obtained to support the auditors report issued? [PSA 220.17]
A322
Did the auditor perform substantive procedures relating to the financial

statement closing process, such as agreeing or reconciling the financial
statements with the underlying accounting records and examining material journal entries and other adjustments made during the course of preparing the financial statements? [PSA 330.22]
A323
Did the auditor determine whether uncorrected misstatements were material, either individually or in the aggregate? The auditor should consider
the following: [PSA 450.11]
A324
The size and nature of the misstatements, both in relation to
particular classes of transactions, account balances, or disclosures
and the financial statements as a whole, and the particular
circumstances of their occurrence
The effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances, or
disclosures and the financial statement as a whole
Ques.
Does it appear (lack of contrary evidence) that the firm established poli-
and provided sufficient and appropriate resources for the development,

documentation, and support of its quality control policies and procedures? [PSQC A5]
A325
Does it appear engagement personnel (including leased and per diem

employees) possessed an appropriate mix of experience or expertise and
technical training in relation to the complexity or other requirements of
the engagement and the involvement of supervisory personnel? [PSQC
2931 and PSQC A24A31]
A326
Did the personnel assigned to this engagement appear to be familiar with

the applicable professional pronouncements.
[PSQC 2931 and PSQC A24A31]
A327
Were the engagement teams audit hours reasonable for this engagement
(including prior to commencement of field work, during and after completion of field work)?
A328
Yes
No
Does it appear that the practitioner in charge of the engagement possessed the following knowledge, skills, and abilities (competencies) to
fulfill their responsibilities on the engagement, including an understanding of the following: [PSQC A18A21 and PSQC A30A35]
A329
The performance, supervision, and reporting aspects of the
engagement?
The applicable accounting, auditing, or attestation professional
standards, including those standards directly related to the
industry in which a client operates?
The industry in which a client operates, including the industrys
organization and operating characteristics, to identify the areas
of high or unusual risk associated with an engagement and to
evaluate the reasonableness of industry specific estimates?
The skills that indicate sound professional judgment?
How the organization is dependent on, or enabled by, information
technologies and the manner in which information systems are
used to record and maintain financial information?
If required by firm policy, was the staff on this engagement appropriately
evaluated? [PSQC 10.A28.A29]
A330
Does it appear that involvement by the engagement partner, manager, and,

when applicable, the engagement quality control reviewer was adequate
and appropriately timed to provide for planning and supervision as the
job progressed? [PSQC 3247 and PSQC A32.A63]
A331
If required by firm policy, was an appropriate preissuance review completed and documented? [PSQC 3247 and PSQC A32.A63]
A332
Were the firms guidelines for the performance of an engagement quality

review complied with? [PSQC 3247 and PSQC A32.A63]
A333
00-8 JAN 2014
General Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
Were any circumstances noted in which the firm consulted or should

have consulted regarding an engagement matter (that is, a complex,
unusual, or a technical issue) with individuals within the firm, an external
party, or by researching in applicable professional literature based on the
firms policies and procedures or when the complexity or nature of the
issue warranted consultation? [PSQC 3247 and PSQC A32.A63]
A334
N/A
Yes
I
f
a
n
i
n
d
i
v
i
d
Ref.
No
ual was consulted (internally or externally), was the consultation

done on a timely basis, and does it appear they were aware of all
relevant facts and circumstances?
If professional literature was researched, does it appear the research was thorough and the sources consulted were complete,
correct, and up to date?
Does it appear that the person(s) consulted (internally or
externally) or the individual(s) performing the research, or both,
had an appropriate level of knowledge, competence, judgment,
and (if applicable) authority?
Based on the facts and circumstances, were the firms conclusions
reasonable and consistent with professional standards?
Is the firms report, the financial statements, or other information
affected by the matter consistent with the results of the
consultation?
If the engagement records indicated a difference of opinion
between the engagement personnel, specialist, or other
consultant, was the difference resolved in accordance with firm
policy, and was the basis of the resolution appropriately
documented?
Ref.
IV. FUNCTIONAL AREAS

Ques.
Leadership Responsibilities for Quality Within the Firm (the

Tone at the Top)
Does it appear (lack of contrary evidence) that the firms leadership
promotes an internal culture based on the recognition that quality is essential in performing engagements? [PSQC 18]
Does it appear (lack of contrary evidence) that the firm established policies to assign management responsibilities so that commercial considerations did not override the quality of work performed; established policies
and procedures that address performance evaluation, compensation, and
advancement (including incentive systems) with regard to its personnel,
in order to demonstrate the firms overarching commitment to quality;
and provided sufficient and appropriate resources for the development,
documentation, and support of its quality control policies and procedures? [PSQC A5]
Relevant Ethical Requirements [PSQC 20.25]
If anything has been noted that may indicate a lack of independence,
integrity, and objectivity, was the matter identified and appropriately
resolved by the firm and its effects appropriately considered? [CoE 110
120, and 290]
Did the member establish and document in writing his or her understanding with the client with regard to specific criteria relating to nonattes
services? [CoE 290]
Have engagement personnel (including leased and per diem employees)
been appropriately advised of the need to observe applicable independence, integrity, and objectivity requirements concerning the client and
any related nonclient parent, investor, investee, subsidiary, or affiliate?
Were all fees, billed or unbilled, or note(s) receivable arising from such
fees for any professional services provided more than one year prior to
the date of the report paid prior to the issuance of the report for the cur191,103-.104
rent engagement? [ET
Yes
No
Ref.
A401
A402
Draft
Acceptance and Continuance of Client Relationships and Specific

Engagements [PSQC 2628]
Does it appear the firms guidelines for acceptance and continuance of
client relationships, including performing specific engagements for the
client, were complied with, based on inquiry of the accountant or review
of engagement files, if any?
Human Resources [PSQC 29-31 and PSQC A24-A31)
Were scheduling and staffing requirements identified on a timely basis
and approved by appropriate personnel?
Does it appear engagement personnel (including leased and per diem
employees) possessed an appropriate mix of experience or expertise and
technical training in relation to the complexity or other requirements of
the engagement and the involvement of supervisory personnel?
N/A
A403
A404
A405
A406
A407
A408
A409
All No answers should be handled in either of the following ways: (1) discussed on an MFC form with the MFC form number noted in the
Ref. column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
the applicable professional pron

Ques.
Did the personnel assigned to this engagement appear to be familiar with
N/A
Yes
Does it appear that the practitio

sessed the following knowledge
fulfill their responsibilities on the engagement including an understanding of the following: [PSQC A25A27 and PSQC A30A31]
The role of the firms system of quality control and the PSA
Code of Professional Conduct
A411
The performance, supervision, and reporting aspects of the engagement

The applicable accounting, auditing, or attestation professional
standards including those standards directly related to the industry
in which a client operates
job progressed?
The industry in which a client operates, including the industrys

organization and operating characteristics, to identify the areas of
high or unusual risk associated with an engagement and to evaluate the reasonableness of industry specific estimates
DraftA413
The skills that indicate sound professional judgment

How the organization is dependent on or enabled by information
technologies and the manner in which information systems are
used to record and maintain financial information
If required by firm policy, was the staff on this engagement appropriately
evaluated?
A412
Engagement Performance [PSQC 3247 and PSQC A32A63]

Does it appear that involvement by the owner or partner, manager, and
where applicable, the engagement quality control reviewer was adequate
and appropriately timed to provide for planning and supervision as the
For the engagement, did the personnel adequately complete all forms,
checklists, or questionnaires, if applicable, required by firm policy for
the following areas?
A414
Work program
Disclosure and reporting checklist
Working paper and financial statement reviews
If standardized forms were not used for any of the above areas, is there
adequate documentation of these areas?
A415
Were the firms guidelines for the form and content of working papers
complied with?
A416
If required by firm policy, was an appropriate pre-issuance review completed and documented?
A417
Were the firms guidelines for the performance of an Engagement Quality Review complied with?
A418
No
Ref.
Ques.
Were any circumstances noted where the firm consulted or should have
consulted regarding an engagement matter (that is, a complex, unusual,
or a technical issue) with individuals within the firm, an external party, or
by researching in applicable professional literature based on the firms
policies and procedures or where the complexity or nature of the issue
warranted consultation? Consider
if an individual was consulted (internally or externally), was the
consultation done on a timely basis and does it appear they were
aware of all relevant facts and circumstances?
if professional literature was researched, does it appear the
research was thorough and the sources consulted were
complete, correct, and up-to-date?
does it appear that the person(s) consulted (internally or
externally) or the individual(s) performing the research, or both,
had an appropriate level of knowledge, competence, judgment,
and (if applicable) authority?
based on the facts and circumstances, were the firms conclusions
reasonable and consistent with professional standards?
is the firms report the financial statements, or other information
affected by the matter consistent with the results of the consultation?
if the engagement records indicated difference of opinion

between the engagement personnel, specialist, or other
consultant, was the difference resolved in accordance with firm
policy and was the basis of the resolution appropriately
documented?
A419
N/A
Yes
No
Ref.
IV. AUDITORS REPORT

Ques.N/A
Auditors Report:
Is the report dated in conformity with the requirements of professional
standards? [PSA 700.41]
Yes
No
Ref.
A401
The audit report should be dated no earlier than the date on which
the auditor has obtained sufficient appropriate audit evidence on
which to base the auditors opinion on the financial statements,
including evidence that
the audit documentation has been reviewed;
all the statements that the financial statements comprise,
including the related notes, have been prepared; and
management has asserted that they have taken responsibility
for those financial statements.
Does the report appropriately include the basic elements required under
professional standards, and is appropriate language used for modifying
the report in the circumstances described in such standards? [PSA
700.2041 and PSA 705] The report should
be in writing. [PSA 700.22]
A402
include the word independent. Indicates that it is a

report of an independent auditor.[PSA 700.21]
be addressed as required by the circumstances of the

engagement.
identify the entity whose financial statements have
been audited, state that the financial statements have
been audited, identify the title of each statement that
the financial statements comprise and specify the date
or period covered by each financial statement that the
financial statements comprise. [PSA 700.23]
include a section with the heading Managements
Responsibility for the Financial Statements. [PSA
700.25]
describe managements responsibility for the
preparation and fair presentation of the financial
statements. The description of managements
responsibility should not be referenced to a separate
statement by management about such responsibilities,
if such a statement is included in a document
containing the auditors re-port. [PSA 700.2627]
include a section with the heading Auditors
Responsibility. [PSA 700.28]
state that the audit was conducted in accordance with
generally accepted auditing standard Philippine
Standards on Auditing (PSA)
include a section with the heading Opinion. [PSA 700.34-36]
identify the applicable financial reporting framework

and its origin. [PSA 700.37]
be appropriately modified in accordance with
professional standards, if applicable. [PSA 705]
No
Ques.
Does the report include all the required elements for a special purpose
financial statement? [PSA 800] Consider the following:
The explanation of managements responsibility should also
make reference to its responsibility for determining that the
applicable financial reporting framework is acceptable in the
circumstances, when management has a choice of financial
reporting frame-works in the preparation of such financial
statements. [PSA 800.13b]
The report should describe the purpose for which the financial
statements are prepared or refer to a note that contains that information, when the financial statements are prepared in accordance with a regulatory or contractual basis of accounting. [PSA
800.18a]
Professional standards have been properly complied with for reports on single financial statements and specific elements. [PSA
805]
If the special purpose financial statements are not prepared in
accordance with a regulatory basis of accounting intended for
general use special purpose framework, then the report should
include an emphasis-of-matter paragraph under an appropriate
heading that indicates that the financial statements are prepared
in accordance with the applicable special purpose framework,
refers to the note to the financial statements that describes that
framework, and states that the special purpose framework is a
basis of accounting other than gener-ally accepted accounting
principles as a result, the financial statements may not be
suitable for another purpose. [PSA 800.14]
If the auditor is required by law or regulation to use a specific
layout, form, or wording of the auditors report, the auditors
report should contain the minimum elements required by PSA.
If the financial statements of a prior period are presented and have been
audited by a predecessor auditor whose report is not presented, and the
predecessor auditors report on the prior periods financial statements is
not reissued, has the successor auditor included the appropriate reference
to the predecessor auditor in another-matter paragraph? [PSA 710.13]
If the entity presents supplementary information with the financial
statements, does the auditor report on the supplementary information in
either (1) an explanatory paragraph in accordance with PSA section 706
706, Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in
the Independent Auditors Report (Professional Standards), or
(2) in a separate report on the supplementary information? The othermatter paragraph or separate report should include the following elements:
A statement that the audit was conducted for the purpose of
forming an opinion on the financial statements as a whole.
A statement that the supplementary information is presented for
purposes of additional analysis and is not a required part of the
financial statements.
A statement that the supplementary information is the
responsibility of management and was derived from, and relates
directly to, the underlying accounting and other records used to
prepare the financial statements.
A403
A404
A405
N/A
Yes
Ref.
Ques.
A statement that the supplementary information has been subjected

to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing
and reconciling such information directly to the under-lying
accounting and other records used to prepare the financial
statements or to the financial statements themselves and other
additional procedures, in accordance with PSA.
If the auditor issues an unqualified opinion on the financial

statements and the auditor has concluded that the supplementary
information is fairly stated, in all material respects, in relation to
the financial statements as a whole, a statement that, in the
auditor's opinion, the supplementary information is fairly stated,
in all material respects, in relation to the financial statements as
a whole.
If the auditor issues a qualified opinion on the financial
statements and the qualification has an effect on the
supplementary information, a statement that, in the auditor's
opinion, except for the effects on the supplementary information
of (refer to the paragraph in the auditor's report explaining the
qualification), such information is fairly stated, in all material
respects, in relation to the financial statements as a whole.
If the use of the report has been restricted, did the auditor comply with
the applicable provisions about restricting the use of the auditors written
communication?
A406
N/A
Yes
No
Ref.
V. EXPLANATION OF NO ANSWERS AND OTHER COMMENTS

The following pages are provided for your comments on all No answers for which a Matter for Further
Consideration form was not generated or to expand upon any of the Yes answers. All No answers must be
thoroughly explained and reviewed with the engagement partner or owner.
Question
Disposition
of Comments||
Number
Explanatory Comments
What is the systemic cause, if any, of the matters identified, including your discussion with the engagement partner or
owner and his or her view of the cause of the matters?
The nature of the disposition of comments may vary, such as

note resolved and the manner of resolution; and
note not significant to indicate a No answer is appropriate, but that the manner is not significant enough to warrant the preparation of an
MFC form.
VI. CONCLUSIONS
Explain subsequently the reasons for any Yes answers. BE SPECIFIC.
Based on the work performed, did anything come to your attention that caused you to believe that
the firm did not perform the engagement, in all material respects, in accordance
with auditing standards generally accepted in the Philippines, including doc
YES#
NO
NO
appropriately modified?
the practitioner in charge of the engagement did not have the knowledge, skills,
and abilities (competencies) to perform the engagement in accordance with pro-
YES#
NO
fessional standards?
the firm did not comply with its policies and procedures on this engagement in
YES#
NO
all material respects?
YES#
NO
umentation? [PSA 230; ET 202]

the auditors report was not appropriate in the circumstances?
the financial statements did not conform with PFRS (or when applicable, a spe
cial purpose framework2) in all material respects, and the auditors report was not
YES
Explanation of Yes answers:
If this question is answered Yes, see additional guidance contained in Interpretations 66-1 and 67-1, Concluding on the Review of an
Engagement.
2
The cash, tax, regulatory, and other bases of accounting that utilize a definite set of logical, reasonable criteria that is applied to all material items
appearing in the financial statements are commonly referred to as other comprehensive bases of accounting.

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PICPA QAR Committee Peer

Communication With Those Charged With Governance

Philippine Standards on Auditing

Code of Ethics of Professional Accountants in the Philippines

Philippines Standard on Quality Control

Date of Financial Statements*

Were other auditors involved in this engagement? Yes

Number of years assigned to this engagement..................................................................................

Number of years in current position on this engagement..................................................................

Audit hours on this engagement:

AUDIT ENGAGEMENT RISK ASSESSMENT

Date Engagement Review Performed

Date Checklist Reviewed by Team Captain

Team Captain Signature

I. GENERAL AUDIT PLANNING PROCEDURES

Client and Engagement Acceptance and Continuance:

If a scope limitation that would lead to a disclaimer was imposed by

If the auditor became aware of information during

If anything has been noted that may indicate a lack of independence,

Have engagement personnel (including leased and per diem employees)

Does it appear the firms guidelines for acceptance and continuance of

Were scheduling and staffing requirements identified on a timely basis

The responsibilities of management, including managements

plan? [PSA 300.06]

The involvement of specialists?

The performance of other risk assessment procedures?

If consideration was given to the work of internal auditors in determin

Did the auditor properly document comp

scussion among engagement personnel in planning the audit

the auditors identification of managements override of controls as

evaluation of the accumulated results of auditing procedures and

Information Technology Considerations:

fication of the role of IT relative to financial transaction and

Were appropriate acceptance and continuance procedures performed,

Did the group engagement team determine component materiality for

Work Performed by a Component Auditor:

whether a component auditor understands and will comply with

If the group engagement partner is not making reference to the work of a

Auditor's Specialist, If Used:

Service Auditor Reports:

Internal Control and Control Risks:

obtaining an understanding of the controls in place at the entity

II. AUDIT AREAS

Was the Risk

Indicate with a checkmark.

Confirmation of cash balances

Restrictions on cash balances

Confirmation of bank credit arrangements, such as compensating

Was due consideration given to cash transactions shortly before and

If accounts receivable confirmations were not requested, has the auditor

If confirmation work was performed prior to year end, is there evidence

In the case of each nonresponse to confirmations, is there evidence that

Were significant notes receivable confirmed as of a date consistent with

Were the results of confirmation and alternative procedures summarized,

Were adequate tests of discoun

Were appropriate inventory cut-off tests performed? [PSA 501.A4-A5]

Does the audit documentation indicate that steps were performed to

Investments in Securities, Derivative I

For investments in securities, derivative

ify the types of potential misstatements of specific financial

The auditor should determine whether the applicable financial

For unrealized appreciation or depreciation on derivatives, the

Prepaid Expenses and Deferred Charges, etc.