CLIENT:
AUDIT PROGRAM
___________________________________________________________
PERIOD:
___________________________________________________________
SUBJECT:
SURPLUS ON REVALUATION OF FIXED ASSETS
Est.
Hrs.
Phase/
Level
W/P
Ref.
Procedures
AUDIT OBJECTIVES
To determine whether:
A.
B.
Surplus on revaluation of fixed assets is accurately
computed, represents valid and proper valuation and
is adequately recorded and classified and disclosed.
Surplus on revaluation of fixed assets is released
adequately in accordance with the provisions of the
Companies Ordinance, 1984.
SUBSTANTIVE PROCEDURES
1. General
1.1
1.2
1.3
1.4
Examine the revaluation policy in respect of property,
plant and equipment and ensure that it is being
consistently applied as per requirements of IAS-16
and IAS-36.
Ensure that the revaluation surplus has been kept
separately in accordance with the requirement of
section 235 (as revised) of the Companies Ordinance,
1984.
Ensure that revaluation surplus is not applied to set off
or reduce any deficit / loss or added to income / profit,
except as provided for by SECP SRO no. 45(I/2003)
13-01-2003.
Ensure that proper disclosures as required under IASs
and the Companies Ordinance, 1984 relating to the
following have been made:
 The basis used to revalue the assets;
 Effective date of revaluation;
 Whether an independent valuer was involved;
 The nature of any indices used to determine
replacement cost; and
 The carrying amount of each class of
property, plant and equipment.
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T/AP/3
By
Comments/Explanations
CLIENT:
AUDIT PROGRAM
___________________________________________________________
PERIOD:
___________________________________________________________
SUBJECT:
SURPLUS ON REVALUATION OF FIXED ASSETS
Est.
Hrs.
Phase/
Level
W/P
Ref.
Procedures
2. Revaluation during the year
2.1
2.2
2.3
Obtain a listing of all the assets that have been
revalued, if any, and consider the following:
 Reasons for revaluation;
 The professional competency and experience
of the valuer;
 Significant assumptions made;
 Method used;
 Date and year of revaluation;
 Amount of revaluation; and
 Treatment of revaluation surplus / deficit.
Obtain copies of revaluation report from the client in
case of revaluation. Perform audit tests in accordance
with ISA-620 “Using the Work of an Expert”. Have
following considered, while considering the valuation
reports:
 Competence and objectivity of the
expert;
 Scope of the expert’s work; and
 Assessing the work of the expert.
Refer to BPRD Circular No.34 dated 13 October 1996
“Approved firm of chartered accountants for the
purpose of revaluation of assets” to ensure that the
valuer was competent for the purpose.
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
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T/AP/3
By
Comments/Explanations
CLIENT:
AUDIT PROGRAM
___________________________________________________________
PERIOD:
___________________________________________________________
SUBJECT:
SURPLUS ON REVALUATION OF FIXED ASSETS
Est.
Hrs.
Phase/
Level
W/P
Ref.
Procedures
T/AP/3
By
Comments/Explanations
Ensure appropriate disclosure have been made in
accordance with the reporting framework and fill
relevant portion of FSDCL.
Supervision, review and conclusion
1.
2.
3.
4.
Perform Senior review and supervision.
Resolve Senior review points.
Resolve Partner and Manager review points.
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 work program have been achieved, except as follows:
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Date:____________
__________
Signature
_____________
Job Incharge
Page: 3/3
_________
Manager
________
Partner