ABC Service Agency

ABC Service AgencyAUDIT OF OVERTIME WORKEDABC Service AgencyA 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 AssessmentConsidering different factors that would provide relevant information on our audit, we provide a preliminary 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 MethodologyThe 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 questionnaire

Audit ObjectivesWith the initial assessment conducted on the organization, we have come up with below objectives:

To assess if proper documentation was considered on the organizationTo know if there is proper authorization taken placeTo identify if appropriate cost was recorded on correct accountTo determine if overall internal control was highly considered

Scope and Methodologyaudit engagement will only last for 6 months(April September 2015)

focusing our audit most likely on accounts affecting the salaries, overtime pay and payables related to employeesAudit ScopeAll 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 MethodologyIn 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 through re-computation, tracing and comparison.Examination of validity of records and supporting documents through sample checking and vouching.

Audit Timing and ResourcesAudit Team is composed of 5 members comprising of 1 team lead and 4 staff