Audit Program

CMED Health Limited

For the year ended 30 June 2021

Financial Statements’
Audit program
Area

Balance sheet items:

1. Have the client prepare a fixed asset schedule and confirm the previous
year’s balances, additions, dispositions and accumulated depreciation;
2. Examine whether any register is maintained or not. If the register is
maintained, check the register as to whether the register contains all
the information in respect of additions, dispositions, identification
numbers, movements, etc.;
3. Compare the additions with G.L and check it with the Fixed Assets
Register. Test the clerical accuracy;
4. Assess the reasonableness of the net book value of fixed asset based on
Property, plant and the remaining depreciable lives;
equipment 5. Check and verify the purchase procedure as per organization's
procurement policy;
6. Check and verify physically for authentication of present position of
Fixed Assets of the organization;
7. Check and verify the method of depreciation and recalculate/ re-
perform the calculation of depreciation and it subsequent charge in
Statement of Income and Expenditure;
8. Check and verify the method of Revaluation of the Fixed Assets;
9. Review the adequacy of disclosures related to the property, plant and
equipment.
 Audit Program
CMED Health Limited
For the year ended 30 June 2021

1. Agree the opening balance from last year audit report;

2. Obtain bank statement and cash book;
3. Check bank book with bank statement and vice versa;
4. Check bank reconciliation and reconciled items have been cleared
Cash and Bank equivalents subsequently;
5. Send balance confirmation letter to bank to confirm the bank balance;
6. Obtain cash certificate from client;
7. Check segregation of duties, security of bank cheque and cash;
8. Perform surprise physical cash counting;
9. Ensure that bank and cash balance are correctly presented.
 Audit Program
CMED Health Limited
For the year ended 30 June 2021

1. Agree the opening balances to last year’s audited accounts;

2. Obtain and check, or prepare, a lead schedule for the current
year’s figures and reconcile this to the nominal ledger;
3. Examine any material journal entries or other adjustments made during
the course of preparing the financial statements;
4. Carry out analytical procedures such as:
Advance, deposit and ➢ Comparison of the current figures with those of prior periods
prepayments ➢ Review of key ratios or other performance indicators;
5. Review for large and/or unusual items and verify;
6. Obtain or prepare a list of items included as prepayments. Review for
reasonableness and verify significant/unusual items, comparing with last
year and expectations.
7. Check whether the NGOAB approval is obtained for the bank account
through which the fund is transferred from donor.
 Audit Program
CMED Health Limited
For the year ended 30 June 2021

General:

1. Agree the opening balances to last year’s audited accounts;

2. Obtain and check, or prepare, a lead schedule for the current year’s
figures and reconcile this to the nominal ledger;
3. Examine any material journal entries or other adjustments made during the
course of preparing the financial statements;
4. Carry out analytical procedures such as:
➢ Comparison of the current figures with those of prior periods
➢ Review of key ratios or other performance indicators;
5. Review for large and/or unusual items and verify;
Liabilities and charges:
Liabilities for
6. Review obligations under pension and similar post-retirement schemes and
expenses and
ensure that adequate provision has been made;
Litigation and claims:

7. Identify any possible claims or litigation against the organization;

8. Make appropriate inquiries of management including obtaining
representations;
9. Review minutes of those charged with governance and correspondence with
the organization’s legal advisers;
10. Examine legal expense accounts;
11. Where actual or potential litigation or claims against the organization have
been identified consider whether direct communication with the entity’s legal
advisers is required or not;
12. If permission is refused by management to contact the organization’s legal
advisers directly: consider the impact on the audit opinion.
 Audit Program
CMED Health Limited
For the year ended 30 June 2021

Income and
Expenditure items:

1. Check whether there is any provision for ‘Other current working

expenses’ in the approved budget;
2. Check whether the policy regarding the mode of payment is compiled or
not;
3. The amount shown in the ledger is consistent with Statement of Income
and Expenditure;
Other current working 4. The amount shown as Other current working expenses is truly the
expenses expense for Other current working expenses;
5. Select some transactions on sample basis;
6. Vouch those transactions as per organization's Administrative policy in
order to find out any irregularity;
7. Check whether VAT is deducted and deposited properly;
8. Check whether Tax is deducted and deposited properly.
 Audit Program
CMED Health Limited
For the year ended 30 June 2021

1. Obtain Administrative policy of CMED Health Limited

2. Check whether the amount shown in the ledger is consistent with
Statement of Income and Expenditure;
3. Select some transactions of different head of expenses of administrative
cost on sample basis;
Administrative expenses 4. Vouch those transactions of different head of expenses as per
organization's Administrative policy in order to find out any irregularity;
5. Check and verify the TDS, VAT as per taxation laws applicable in
Bangladesh and confirm with the deposit of the amount in Bangladesh
bank through treasury challan;
6. Check whether the policy regarding the mode of payment is compiled or
not.
 Audit Program
CMED Health Limited
For the year ended 30 June 2021

General
1. 1. Agree the opening balances to last year’s accounts.
2. Obtain and check, or prepare, a lead schedule for the current
year’s figures and reconcile this to the nominal ledger.
3.Examine any material journal entries or other adjustments made during
the course of preparing the financial statements.

4. 4. Carry out analytical procedures such as:

(a) comparison of the current figures with those of prior periods;
(b) review of key ratios or other performance indicators.

5. Review the planned extent of reliance on internal controls in

Share Holders Equity
this area and consider whether this remains appropriate.
6. Assess whether the initial materiality and/or risk assessment should be
revised in view of the audit evidence obtained. Record details of any
necessary adjustments on B5 or B8. Consider the impact on the remainder
of the audit work and on any work undertaken to date.

7. Review for large and/or unusual items and

verify.
Share capital
Record details of any changes in share capital in this period and ensure
that these have been properly reflected in the accounts.
a. For shares issued in the period: have these (or their components) been
classified on initial recognition as a financial liability or an equity
instrument in accordance with the substance of the contractual
arrangements?

Reserves
b. Schedule all movements in reserves:
(a) Ensure that transfers between reserves are correctly treated and
authorized , and
(b) Ensure that the treatment in the accounts is correct.