Audit Work Program Dividend Payable

Audit Work Program Dividend Payable

Audit Program (e)        Dividend Payable		WP Ref.:
		Prepared by:
		Date:
		Reviewed by
		Date
Client:
Period:
Subject:	Dividend Payable

					Amount in Rs.
Account balances:
Classes of transactions:
S. No.	Audit Objectives	Assertions	Risk Assessment
			IR	CR		ROSM
	To ensure that dividend payable represents established liability as at the year end payable to the shareholders of the company.	Existence, Rights & Obligations
	To ensure that the company’s liability in respect of dividends has been recorded in the books in full.	Completeness
	To ensure that liability is recorded at the correct amount.	Valuation
	To ensure that dividend payable has been presented, classified and disclosed in the financial statements in accordance with the requirements of applicable financial reporting framework i.e. Companies Ordinance, 1984 and applicable International Financial Reporting Standards.	Presentation & Disclosure

S. No.	Audit Procedures	Done by	W. P. Ref.
Analytical Procedures
1.	Review the percentage of declaration as compared to previous year.
2.	Determine whether the declaration is consistent with the profits of the company
3.	Review movement during the  year and ensure that any unpaid dividends carried forward have been properly classified as unclaimed dividends.
Test of Details
1.	TEST DIVIDEND PAYABLE BALANCES
	1.     Trace opening balance from general ledger.
	2.     Obtain a list of members of the company as at the book closure date.
	3.     Obtain copy of the board resolution to verify the rate of the dividend (interim and final ) announced.
	4.     Check that Zakat has been deducted at source and deposited in the Central Zakat Fund under the provisions of the Zakat and Ushr Ordinance, 1980.
	5.     Check that income tax has been deducted from dividend under the provisions of the income tax Ordinance 2001.
	6.     Check payment of the dividend (i.e. dispatch of the dividend warrant) has been made within the time period as required by Sec 251 of the Companies Ordinance, 1984.
	7.     Agree closing balance with general ledger.
	8.     Evaluate results of the tests.
2.	TEST PRESENTATION OF DIVIDEND PAYABLE
	A.    Determine that disclosures have been made in accordance with requirements of the Companies Ordinance, 1984 and relevant accounting pronouncements.