Audit Program on Asia Pacific Digital Limited

This presentation provides an audit program for Asia Pacific Digital Limited, covering key business risks, ratio analysis, audit model, overall materiality, assertions, and sampling. The overall materiality for the company is $455180. The presentation also includes specific audit procedures and evidence for account balances such as cash and cash equivalents, accounts receivable, and provisions. Sampling is also discussed as a method for assessing typical items within a balance or class of transactions.

AUDIT PROGRAM
ON ASIA PACIFIC
DIGITIAL LIMITED.

PRESENTATION
OUTLINEKey Business Risk
Ratio Analysis
Audit Model
Overall Materiality
Assertions
Sampling

Key business risk
Compliance Risk- This risk is
negligible as the company as opted
the new structure of the standards.
Financial Risk- Main risk associated
is interest rate, exchange foreign
currency and liquidity risk.

Ratio Analysis
Current Ratio Quick Ratio Debtor
Turnover
Sales to Asset Equity Ratio
0
1
2
3
4
5
6
7
2015 2016 2017

Audit Model
Inherent
Risk
Control
Risk
Planned
Detection
Risk
Amount of
Evidence
Required
26% 15% 20% High

Overall Materiality
Overall materiality is set by the auditors for the
inspection of the financial statement of the
company. The foremost reason for setting the base
of overall materiality is to recognize the
performance of the materiality that helps auditors to
construct the procedure for audit and to get a clear
view of the misstatement present in the statements.
The overall materiality for Asia Pacific Digital Limited
is $455180.

Assertions
Account Balance
$`000
Assertion(s) Audit Procedure Audit Evidence
Cash and cash
equivalents
903 Existence-exists in the balance date.
Completeness-all items related to cash is
recorded as on balance date.
Appeal and scrutinize bank confirmations
2. Assume tests of bank reconciliations, trail-
up integration article.
Bank Confirmation credential from the Bank
(Document). Obtain duplicates of client’s
bank reconciliations (Document). Enquiry and
proceedings of integration item (oral)
Accounts Receivables 7742 Accuracy- the item is recorded correctly. Request for the invoices and record of the
amounts from the management of the
company.
Scrutinize the receipts of the debtors.
( Document and oral) Crosschecked the
earlier payment received. (Document and
oral)
Plant & Equipment 748 Valuation- the amount recorded, as on balance
date is appropriate. Existence- the item recorded
in the balance sheet exists in the period end.
Appealed for the invoices of the asset
purchased and documents regarding the
valuation.
Physically verified the asset. Properly
scrutinize the valuation designed by the
management.( Document)
Investment 651 Cut- off- the transaction have been identified in
the correct accounting period.
Request for the valid documents and the
process of determining the fair value.
Examined the documents and the
calculations of the fair value( Documented
and oral)
Intangible Assets 500 Valuation- has been appropriately valued as on Ask for the result of internal review Examined the internal review conducted by

Accounts Payable 8009 Accuracy- the item is
recorded correctly
Request for the invoices
and record of the
amounts from the
management of the
company
Scrutinize the receipts of
the creditors. ( Document
and oral) Crosschecked
the earlier payment
made. (Document and
oral)
Deferred Income 1846 Existence- appropriately
recorded as on balance date.
Requests for documents
relating to recognize the
taxable temporary
differences.
Examine critically the
documents and discussed
the transaction with the
management. ( Document
and oral)
Provisions 1616 Completeness- provision
made are as on balance
date.
Request to present the basis
of provision made by the
management.
Critically examines the basis
of provisions.( document)
Interest and loan
bearing borrowings
6389 Accuracy- the amount
recorded is accurate as on
the balance date.
Appeal for the proofs of the
transaction record made
against the item.
Critically examines the
documents presented.
( Document and oral)
Provision for Income Tax 308 Accuracy- the amount Request to present the Examines the tax statement

Sampling
Sampling is the presentation of an
audit procedure to a smaller amount
than 100% of the items within a
justification balance or class of
transactions for the determination of
assessing some typical of all the
substances within the stability or period
of connections.