Audit Group D: BUREAU OF INTERNAL REVENUE
Team 2: National Office – Disbursements (RA Books)
AUDIT PROGRAM
LAND
Audit Period: January 1, 2018 to December 31, 201_
Risk Statements:
1. All land owned by BIR as well as transfers and disposals of the same may not be properly
recorded in the books.
2. All lands recorded in the books may not physically exist.
3. All lands recorded in the books may not be owned by BIR.
4. Propriety valuation and the balance of the account may not be correct.
5. Purchases, disposals and transfers of land may not be in accordance with applicable laws, rules
and regulations.
6. Land account may not be properly and consistently classified, described and disclosed in the
financial statements.
Assertions and Audit W.P. To be Est.
Objectives Audit Procedures Ref done by Time
1. Completeness 1.1. Trace the General Ledger (GL)
beginning balance of the account from
To determine whether ending balance of the previous year.
all land owned by BIR 1.2. Check the accuracy of GL postings
as well as transfers and from the monthly totals of the General
disposals are properly Journal.
recorded in the books. 1.3. Secure a copy of the Trial Balance and
Balance Sheet. Compare the account
balance in the financial statement/Trial
Balance.
1.4. Check footings of the debit and credit
entries in the GL
1.5. Obtain a copy of inventory report and
subsidiary records of land showing
additions and disposals during the
period and other relevant information.
Trace total to the general ledger. Check
totals.
1.6. Prepare reconciliation working paper.
Reconcile and establish causes of
discrepancies, if any. Take note of any
deficiencies.
1.7. Perform cut-off tests to check whether
additions and disposals of land
occurring immediately before and after
balance sheet date are recorded in the
Assertions and Audit W.P. To be Est.
Objectives Audit Procedures Ref done by Time
period they occurred.
2. Existence
2.1. Physically observe the existence of all
To determine whether acquired land during the period.
all lands recorded in the 2.2. During inspection, observe and note
books physically exist any idle/unutilized land and those
occupied by other than the agency.
and that the recorded
acquisitions and
disposals actually
occurred during the
period.
3. Valuation
3.1. Check whether lands are carried at
To determine whether cost. In addition, check on the following
all lands have been valuation:
recorded in their proper a. If through transfer due to court
valuation. order, at appraised value
b. If through expropriation, per
court decision
4. Rights 4.1. Require the management to present
the TCTs of land recorded by the
To determine whether Agency.
BIR has the rights to the 4.2. Check whether the TCTs are intact
lands it owns. and complete
4.3. Examine the TCTs of all the Land
kept by the Agency whether they are
named under the Agency's name.
4.4. Compare General Ledger (GL) and
Subsidiary Ledger (SL) balances and take
note of any discrepancies/variances.
4.5. Determine if the encumbrances and
annotations of the TCTs, if any, are
disclosed to the Agency's books/financial
statements.
4.6. Inquire and inspect how the TCTs of
Land are safeguarded from flood, fire,
theft or any other events that might lead
to its destruction or damage.
4.7. Further, evaluate the access control
being implemented to these titles.
5.1. Prepare audit working papers
5.2. Make a conclusion and prepare
AOM, if any
Prepared by: Reviewed by:
YLAINE T. CABRERA IMELDA G. CELSO
State Auditing Examiner II State Auditor IV
Audit Team Member OIC-Supervising Auditor
Date: Date:
