12 - 4G Accounts



| |AUDIT OBJECTIVES | | | | |

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| | |To determine whether: | | | |

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| | |A. |All liabilities on account of proposed/ unclaimed/unpaid dividends | | | |

| | | |are properly recorded and represent valid liabilities of the entity| | | |

| | | |at the balance sheet date. | | | |

| | |B. |These are properly described and classified and adequate | | | |

| | | |disclosures with respect to these amounts have been made. | | | |

| | |C. |Zakat has been adequately deducted and deposited in the Central | | | |

| | | |Zakat Fund according to the requirements of Zakat and Ushr | | | |

| | | |Ordinance, 1980 and Rules made thereunder. | | | |

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| | |SUBSTANTIVE PROCEDURES | | | |

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| | |1. Recording of liability / dividend declared | | | |

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| | |1.1 |See authority of Board and / or general meeting for all dividends | | | |

| | | |declared / paid. | | | |

| | |1.2 |Agree capital on which dividend is paid with issued capital. | | | |

| | |1.3 |Ensure that any unpaid / unclaimed amount of dividends is | | | |

| | | |adequately disclosed. | | | |

| | |1.4 |Ensure that dividends are paid out of profits and no dividend is | | | |

| | | |paid out of proceeds of sale or disposal of any immovable property | | | |

| | | |/ asset of capital nature. | | | |

| | | | | | | |

| | |2. Payments | | | |

| | | | | | | |

| | |2.1 |Ensure that dividend warrants are issued in the name of registered | | | |

| | | |shareholders or to their order. | | | |

| | |2.2 |Ensure that dividend is paid within 45 days of declaration thereof | | | |

| | | |(or 30 days in case of a private company) in case of interim | | | |

| | | |dividend and / or dividend declared / approved in last AGM. | | | |

| | |2.3 |Ensure that withholding tax has been properly deducted from cash | | | |

| | | |dividend / bonus shares. | | | |

| | |2.4 |Ensure compliance with Foreign Exchange Act, 1947 including | | | |

| | | |nomination of authorized dealer and permission from SBP for | | | |

| | | |purchase of foreign exchange for remittance of dividend to foreign | | | |

| | | |shareholders. | | | |

| | |2.5 |Ensure that provisions of double taxation treaty with the relevant | | | |

| | | |country / countries are complied with. | | | |

| | |2.6 |Ensure that amount of dividend payable is being kept in a separate | | | |

| | | |bank account prior to payment. | | | |

| | | | | | | |

| | |3. Zakat | | | |

| | | | | | | |

| | |3.1 |Ensure appropriate deduction of zakat under the provision of Zakat | | | |

| | | |and Ushr Ordinance, 1980 and relevant Rules. | | | |

| | |3.2 |Ensure deposit of zakat deducted in the Central Zakat Fund | | | |

| | | |according to the requirements of the Zakat and Ushr Ordinance, 1980| | | |

| | | |and rules made thereunder. | | | |

| | |3.3 |Ensure that the opinion paragraph contained in the auditors’ report| | | |

| | | |is updated with regard to the reporting on the matters relating to | | | |

| | | |zakat and is properly supported. | | | |

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| | |Other tests as deemed necessary | | | |

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| | |Management Letter | | | |

| | | | | | | |

| | | |Prepare management letter points including: | | | |

| | | |Internal control weaknesses; | | | |

| | | |Business improvement opportunities; | | | |

| | | |Legal non-compliance; | | | |

| | | |Accounting system deficiencies; and | | | |

| | | |Errors and irregularities not material at the financial statements | | | |

| | | |level. | | | |

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| | |Disclosure | | | |

| | | | | | | |

| | | |Ensure appropriate disclosure have been made in accordance with the| | | |

| | | |reporting framework and fill relevant portion of Financial | | | |

| | | |Statement Disclosure Checklist (FSDCL). | | | |

| | | | | | | |

| | |Supervision, review and conclusion | | | |

| | | | | | | |

| | |1. |Perform Senior review and supervision. | | | |

| | |2. |Resolve Senior review points. | | | |

| | |3. |Resolve Partner and Manager review points. | | | |

| | |4. |Conclude response to the audit objectives. | | | |

Audit conclusion

Based on the substantive test procedures, I/we performed as outlined above, it is my/our opinion that the audit objectives set forth at the beginning of this audit program have been achieved, except as follows:

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Date:____________ Signature Job Incharge Manager Partner

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