Other Tests As Deemed Necessary

Other Tests As Deemed Necessary

AUDIT PROGRAM

CLIENT:______T/AP/4

PERIOD:______

SUBJECT:DIVIDENDS

Est. Hrs. / Phase/Level /

Procedures

/ W/P Ref. / By / Comments/Explanations

AUDIT OBJECTIVES

To determine whether:
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.
SUBSTANTIVE PROCEDURES
1. Recording of liability / dividend declared
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.

Other tests as deemed necessary

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.

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:______SignatureJob InchargeManagerPartner

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