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ABC Service Agency

A service organization with a locally

based headquarters located in Makati
City, Philippines.

Its principal responsibility is to provide

conference services to different clients.

The organization structure consists of an

Executive Office, seven divisions and eight
Secretariats for each of their clients. As at
31 December 2014, it had 1,000 staff
posts of which 600 (60 per cent) were in
the core staff and 400 (40 per cent) were
clerical staff.

Overtime from 2010 - 2014

Risk Assessment

Considering different factors that would

provide relevant information on our
assessment on how internal control was
being measured.

A survey form was given to the chosen

population in order to get their
respective views on the organization as
a whole.

Risk Assessment Methodology

The initial assessment taken before the actual audit will help the
auditor to evaluate on which area to focus with.

In the assessment conducted, the auditors provided a survey

form to get the views of the employee as well as the
management regarding the internal control the company has.

The survey form was distributed on the sample population on

random bases. It was being measured using the following criteria:
1 5, 1 being the highest and 5 being the lowest.

The question were also categorize for the respondents sake.

There are total of 150 participants on the said survey.

summary of the findings of our


Audit Objectives
With the initial assessment conducted on the
organization, we have come up with below

To assess if proper documentation was considered

on the organization
To know if there is proper authorization taken place
To identify if appropriate cost was recorded on
correct account
To determine if overall internal control was highly

Scope and Methodology

audit engagement will only last for 6

(April September 2015)

focusing our audit most likely on

accounts affecting the salaries, overtime
pay and payables related to employees

Audit Scope

All the needed information and documentation

on the said audit will also be available and
accessible to the auditors. There is no
restriction as to the needed information. Audit
coverage is from financial year 2010 to 2014.

The auditors can demand any information to

the management such as procedure manuals,
pay slip, timesheets, payroll files, and etc. since
the company does not use any system and they
provided recording manually.

Audit Methodology
In order to achieve the objectives of the engagement,
Auditor/s staff will perform the following procedures:

Documentation of process through walkthrough,

interview and observation.

Reconciliation of data
tracing and comparison.



Examination of validity of records and supporting

documents through sample checking and vouching.

Audit Timing and Resources

Team is
d of 5
g of 1
team lead
and 4