OBJECTIVES PROCEDURES REPORTS ( results)

Ø Inquire and observe on the manual and system monitoring of titling

1. To understand the Company’s titling process and
process and the corresponding payments made for taxes and others Ø Process flowchart
procedures.
fees.
Ø Select sample completed transactions for walkthrough procedure
and document the process and results thereof.
2. To establish completeness of all subdivided titles per Ø Verify titles matched with accounts listed (sold and unsold Ø Reports on the assertion regarding completeness based on VSR
project of the Company accounts). and SDP from the report coming from Operations.
1. Obtain the list of all subdivided titles per project. Ø List of subdivided titles for each project.
2. Tally the list with:
- The approved VSR ( ) and SDP ( ) per
project,
- And, audited recorded inventory list of
accounts (sold and unsold).
3. To establish existence of all subdivided titles per
Ø List of accounts for each project and their corresponding TCT/ CCT
project of the Company and to determine if all titles are free Ø Vouch all titles on the obtained list to:
number and remarks on the encumbrances, if any.
from encumbrances.
Ø List of accounts on which titles on the hands of banks and other
- TCTs and CCTs on hand,
institutions.
- receiving copies from banks and Ø Confirmation letter from bank and other institution.
- individual buyers for released titles and
- Assessment Form and Payment Order for titles filed to
Registry of Deeds for process of title transfer to buyers.
Ø Confirm with bank and institution of the existence of title.
Ø Check the actual titles physically to verify no notation on the face of
the title with regard with encumbrances.
4. To determine titling status on each individual
Ø Checking of sold units/properties. Ø List of accounts with :
accounts and
1. Obtain list of accounts that are sold to buyers with - Date when fully paid, if not yet fully paid, last
their status from the time account was fully paid. payment date.
2. On titles not yet transferred to buyer, verify what are - Titling status on fully paid accounts or accounts
the needed requirements (from buyer and/or from the under financing that requires title to be transfer before
company) to complete the transfer of title to buyer. releasing the loan.
3. Verify financing scheme for each accounts are
- Related pending requirement/s, if title is not yet
under in-house, bank, Pag-ibig, NHMFC and other
transferred to buyer.
financing institution, if any.

Ø Sampling verification with government offices or other institution. - Taxes, legal and other fees paid for already
- Financing scheme (INH, bank, etc)

4. To document any exceptions noted during

performances of audit procedures.
- Discount policy
- Forfeiture
- Notable policy/procedures regarding and internal
control on buyers accounts.

SCHEDULES:
Start: April 11, 2018
APRIL 2018

1 2 3 4 5 6
START

8 9 10 I 11N I T I A 12L A U D 13I T

15 16 17R E V E N U 18
E C Y C L E19 20

22 23 A
24 C C O U N T S 25R E C E I V A B L 26
E 27

29 30

MAY 2018

29 30 1 O T H E R 2A S S E T S 3 4

6 7 F 8 I N A 9L W E E 10K 11
FINAL REPORT

13 17 15 16 17 18

20 21 22 23 24 25

27 28 29 30 31
 7
1st report

U D I T 14
2nd report

21
3rd report

28

4th report

12

19

26
Accounts Objectives Procedures

Customers' Deposits To assess:
• Significant sales recorded at or near year-end
Sale of Real Estate Properties • Individually significant sales
• Unusual or complex revenue transactions
Current and Noncurrent portion of installment contracts receivable - Note 5 • Use of letters of authorization or intent instead of contractsTesting controls for IT systems
• Transactions with related parties
Comparing revenue with prior period at lowest level detail
Confirming contracts
Inquiring about sales near year-end
Appropriate sales cutoff procedures
Detailed review of unusual client adjusting entries
Scanning the general ledger, accounts receivable subledger and sales journal during ye
Analyzing deferred revenue
Reviewing credit memos and other accounts receivable adjustments
Reviewing large contracts at year-end for later changes
Confirming sales agreements terms that might affect the period of recognition

Accounts receivable - Note 6 Reviewing Other Income Schedule

Other Current Assets - Note 11 Reviewing Other Income Schedule

Other Non-current Assets - Note 12 Reviewing Other Income Schedule

Interest Income - Note 4 and 5 Reviewing Interest Income Schedule

Other Income - Note 19 Reviewing Other Income Schedule

 Reports

nd sales journal during year and for subsequent events period

d of recognition
Ask the process
Internal Control
Segregation of duties
Documents
Authorization

Schedules of Customers deposit

Folder of new buyers (January - March)

Realized Sales (January - March)
RABIS
Trend Analysis - Collectability

List of audit procedures is designed to detect a variety of audit risks, which include the following:
· That receivables do not exist
· That recorded receivable balances are inaccurate
· That it may not be possible to collect accounts receivable
· That the derivation of the allowance for doubtful accounts may not properly reflect bad debt experience
· That sales transactions were not processed in the correct periods
· That revenue was incorrectly recognized

Note 5
Note 6
Note 11

Existence
Occurrence
Completeness
Rights and Obligations
Accuracy
Cut off
Valuation and Allocation