Republic of the Philippines JED COMMISSION ON AUDIT: Commonwealth Avenue, Queson City, Dijiovines Corporate Government Sector 2 OFFICE OF THE ASSISTANT COMMISSIONER MEMORANDUM FOR * All Cluster Directors, Supervising Auditors, Audit Team Leaders, Audit Team Members and others concerned This Sector SUBJECT = Guidelines on Uniform Organization, Indexing, Cross- DATE indexing and Labeling of Audit Working Papers (WPs) in the Corporate Government Sector (CGS) 19 October 2018 eee EEC 1; Rationale/Purpose The International Standard on Auditing (ISSAI) 1500 on Audit Evidence, Commission on Audit Resolution No. 2018-018 dated 01 February 2018 establishes an Audit Evidence Management System (AEMS), and adopts 2 Document Imaging System (DIS) to: (1) secure and Preserve audit evidence to su ions and decisions arising from the OS of government agencies, and the Independent 2) preserve and manage the audit evidence which seve, 2S, legal evidence for on-going and/or anticipated investigations and/or court cases; and (3) maintain electronic copies of audit evidence which can be uploaded and viewed online by authorized users. 2018 audit and succeeding years, for submission, safe keeping and1. At the end of each engagement and within 30 Gays after transmittal of the Annual Audit Report/Management Letter (AAR/ML), all audit teams Shall organize in a logical Sequence all related WPs for €ach auditee in Separate uniform Ad-sized rect binders, duly labeled ae herein prescribed, 2. The Permanent WP files shall be organized in a Separate binder from the Current WP files, at / The following should be indicated on the cover of the folder/binder; * Agency name in fall file: PF or CWPF * Type of file: * Audit Stream - PF | > FA = Financial audit > CA= Compliance Audit ~ PA = Performance Audit WRF =” Current Working (oper File and Year Covered | (e.g. CWPF 2018) * Year covered Folder No.: 1 of eg. Y/Banako Sentral ng Pilipinas/ CWPF2018/10F3 Bangko Sentral "9 Pilipinas/cwpFy FA2018/10F3 4. The PF shall include the following documents that will be of continuing importance and use/reference in all Successive audits, and shall contain the following information/documents; z 8 3 a 3 i a z é 8 8 3 2 £ a . 2 z z& 3 3 ?Accounting and other process flowcharts ] Specimen signatures * Systems security, source code security, authorization and back up Policy * Copies of long-term contracts/leases * Loan agreements, Schedules of amortization for debt Extracts of Minutes of Board Meetings * Other relevant information, ‘documents ‘The PF shall be a perpetual living file that shall Continuously be updated, 5. The CWPF shall consist of the following documents: epee Information Content/Audit Evidence | a. Engagement Letter b. IPM = Initial Planning Memorandum General Audit Instructions Audit Group Action Plan €. SAI = Specific Audit Instruction f. Entrance Conference Agenda 9. Minutes of Entrance Conference h. Planning documents for the year covered by the audit hl General/ail audit streams [Acronym WP Title/Document Name I Sample | AAWS [Agency Audit Work Stepe AAWS (p. 1 of ny UTA wnderstanding the Agency Template UTA (p. 1 of n) ‘ARM Agency Risk Model ARM (p. 1 of n) }AgRIM | Agency Risk Identification Matrix AQRIM (p. 1 of ny ALCC Agency Level Control Checklist ALCC (p. 1 of n) PRC Process Risk Control Matrix PRC (p. 1 of n) [API Audit Plan [API (p. 7 of ny h.2 Financial Audit Acronym WP Title/Document Name Sample | ARAPT “Agency Risk Assessment Planning | ARAPT (p. 1 of n) Tool (by assertion) | Walk through notes and analysis [Toc Test of Control working papers TOC (p. 1 of ny [MT Materiality Template MT (p. 1 of n) [APr Audit Program (by account) APr (p. 1 of ny 4.3 Compliance Audit [Acronym WP Title/Document Name I Sample UsMT” “| Understanding the subject matter | USMT (p. 1 of ny |WP Title, Annual Audit Report Management Letter Numbering per COA Circular No, 009-006Bank Statements Confirmation Letters/Replies Interview Notes BRS Copies of relevant source documents * Pictures 3 Inspections Reports ° Appraisal Reports Asing/lepsing schedu les ther documents Which may Serve as documentar, evidence Sources of criteria Specific criteria Major FS Account (whether nominal Orreal | accounts) Sequence shail follow the: Bresentation of account j | the FSs of the auditee, Contra-accounts shall have the same alphaindex as the major &ccount with a sub- pumeric number. Page 1 of nx Cueaning(e.g. only): Bash ~ Cash on Hong, | Petty Cash, Audit (rogram, page 1 of p (see Annex A for. More detailed Audit all be addresseq manually through the use of arrows or the word 74 id "as shown Figures 1a ang or the Hyperlinkin, ang Bookmarking facilities of th icrosoft Word or Excel in cas, electronic 'S OF Soft-copy oj with the Summary schedule for All information £725S-indexed to the Supporting documents shalt jj be cross-indexeq in the ur norting/underiying srurce document/wp to the destination document/summary Using the wor “To”. Illustrative Exampe: Figure fa, Ctoss-indexing Tom Top/Summary | Figure 1B. Schedule t6 de i Ctoss-indexing in WEEP to stination WSEp indicate source Wp | PXXX 10> Weep P xxx € from A-12. The Team Leader and/or Audit Group Supervisor/Assistant Cluster Director responsible for the Quality Control (QC) review shall sign all the WPs under “Reviewed by” ang indicate end date of review, 3. The independent Party responsible (Cluster Service Chief and Director for the Engagement Quality Contro} Review or EQCR shal] likewise individually sign” ang date the pertinent WPS after their review/ referencing process, VI. Transmittal of the WPs to the CAEMS for digitizing, Safekeeping and preservation, The Provision of COA Memo No, 2018-010 dated 2g August 2018 on the "Guidelines in the Operationalization of the AEMS” shall be complied with in the transmittal of the wp Binders for each GOCC audited, The Cluster Directors shay, Supervise the proper implementation of these Guidelines, For your compliance, please, 'E ROSE H: ENCALLADO Assistant Commissioner Copy furnished; cos MEHEPEUETTCE/ MMB 0g Meme CES dene on Indexing