Audit Planning Audit kick off meeting Understanding of the property and the management Analysis of the audit risks Design the test of controls and substantive tests based on the identified risks Define team roles and communication with those who is charged with governance  

Test of controls and walkthrough Understanding controls design and application Internal control questionnaires Check the effectiveness of system and controls by walkthrough Test of controls Observations and risk assessment 

Revenue Make sure budget is approved before the invoices are raised Reconcile revenue from Mollak invoice schedule to budget and ledger . Recalculate revenue as per approved budget Check whether VAT on revenue is recorded correctly Check invoices on sample basis to statement of account of unit owners Recognize general fund, reserve fund and any other charges in the financial statement  Service charge and other receivables Obtain list of service charge receivable and other receivables to match with the TB Obtain the movement of service charge receivable from opening to closing and check on sample basis Check the closing balances with Mollak balances on sample basis Obtain the supporting for other receivables Make sure adequate disclosure including related parties is provided in the financial statements on receivables and expected credit risk 

Expenses Generally, the expenses of the JOP are broken down into Maintenance, Services, Utilities, Management fees, Mater Communities, Improvements , reserve fund expenses and Insurance Expenses are verified through substantive testing and analytical review where we will recalculate expenses as per contracts and sample of invoices Obtain the reasoning for significant variance in expenses compared to budget Check the utility bills , Master community bills on sample basis Check the invoices , work completion certificate payment approval on sample basis Check the invoices/ work done certificate of the reserve fund expenses. Also check with management expenses are done as per RF study report Report expenses appropriately in the financial statements 

Accounts payable, accrued expenses and other payables & related party transactions Obtain the list of creditors, accrued expenses and other payable to match with TB Check the sample of creditors with subsequent payment, invoices and statement of accounts Check reasonableness of accrued expenses in accordance with contracts / PO / recent invoices Check the supporting for other payables Identify the related parties transactions and balances . Call for related party confirmation Make sure appropriate disclosures are made with respect to payables, accrued expenses and related parties as per accounting standards in the financial statements Obtain the list of creditors more than 365 and less than 365 from the management to submit with RERA 

Cash at bank Obtain and check the accuracy of the bank reconciliation for the regulated bank on general fund and reserve fund Check unpresented checks to subsequent bank statements Check un-realized receipts to subsequent bank statements Obtain the bank confirmations Make sure appropriate disclosures are made in the financial statements with respect to bank balances Other income Obtain the list of other income Check the agreement / PO to verify the other income on sample basis Obtain confirmation from the management that the all other income sources are recorded Make sure appropriate disclosures are made in the financial statements 

Value added tax Check on sample basis whether output and input VAT is recorded in the ledgers accurately Check whether JOP has any penalties and disclosure in the financial statements Check the reconciliation from revenue from VAT returns to ledgers / financial statements Make sure appropriate disclosures are made in the financial statements with respect to VAT balances