LUCELEC Grade 1 Pension Scheme
Investment Audit Program
31 December 2018
Objectives: Verify Balance of investments report at FMV at balance sheet date
Scope:
AUDIT STEPS TO BE COMPLETED
A. Planning and Administration Section
1. If this is a repeat or follow-up audit, review the Permanent File and prior
working papers, including policies/procedures, organizational charts,
agreements, etc…
2. Conduct pre-audit interview with auditee and document discussions held.
3. Conduct audit planning meeting with Audit Manager and/or Director and
document discussion held. The following should be discussed:









Timing of audit kick-off meeting / planned participants in the meeting
Timing of fieldwork
Risk areas / internal controls
Audit objectives
Assignment of audit objectives (if more than one auditor is working on
audit)
Consideration of the impact of authoritative accounting literature or
legislation
Testing to be performed (if this can be determined at this time)
Budgeted hours
Engagement memo
4. Prepare engagement memo and obtain approval from the Manager and Audit
Director.
5. Schedule the audit kick-off meeting with applicable management. Include a
meeting agenda in the meeting request (or send soon thereafter).
Discussions held should be documented and include the following:



Q:
Timing of the audit
Audit objectives
Key contacts for the audit
Page 1 of 3
COMPLETED
BY
W/P
REF
AUDIT STEPS TO BE COMPLETED
6. Send an information request list to the auditee. Items to consider:




Relevant agreements/contracts
Organizational charts
Relevant reports utilized by the auditee
Strategic documents (e.g. business plans)
7. Prepare (or update) the process narrative to document the process under
audit based on discussions held with individual familiar with the process.
8. Inquire of the auditee as to whether any relevant process flowcharts exist.
If not, consider developing one for the permanent file.
9. If the audit involves an outside company (particularly a financial institution
or insurance company), determine if a SAS 70 Report (Report on Internal
Controls Design and Effectiveness) has been issued on the company. If so,
obtain a copy and determine if this will impact the audit.
B. Fieldwork
1. First Objective
a. Conduct a walkthrough of the process to determine if there are any design
issues and to verify that procedures exist. This should be completed by
inquiry and observation with the process owner and staff. Complete or
update the process narrative
b. Perform testing of transactions to evaluate the effectiveness of the controls
c. Verify balances of investments
d. Verify value of investments and degree of impairment\appreciation if any
e. Review presentation disclosure and reporting
f.
2. Second Objective
a. Conduct a walkthrough of the process to determine if there are any design
issues. This should be completed by inquiry and observation with the
process owner and staff. Complete a process narrative.
b. Perform testing of transactions to evaluate the effectiveness of the controls
c. List general test steps to be performed (link to detailed test plan)
d.
Page 2 of 3
COMPLETED
BY
W/P
REF
AUDIT STEPS TO BE COMPLETED
e.
f.
3. Add Additional Objectives as Necessary
C. Communicate Results
1. As testing is completed, any issues found should be communicated to the
auditee to confirm the results.
2. After verification of the issues, a summary of findings form should be
completed and sent to the auditee so that a response (i.e., action plan and
target date) can be developed.
3. Submit work papers for manager review as audit steps are completed. This
will help facilitate timely review.
4. Clear all appropriate review notes.
D. Close Out and Submit Report
1. Prepare Draft Report and submit for review.
2. Complete the Audit Report Checklist and include in the work papers.
3. Conduct an exit meeting with auditee to discuss issues noted during the audit
and obtain agreement on the issues.
4. Communicate to the auditee their responsibilities addressing the issue found.
5. Discuss the recommendations, action plans and timelines for addressing the
issue.
6. Based on the discussion, make any necessary changes to the report and
submit for appropriate review.
7. Issue Final Report after review is completed.
End Of Audit Steps
Page 3 of 3
COMPLETED
BY
W/P
REF