OVERVIEW OF THE DIRECTORATE GENERAL OF AUDIT POST TELECOMMUNICATION AND TELEGRAPH (PT&T) 2.1. Overview of the Office The audit of erstwhile T&T/PTC and PPO department was assigned to the Directorate General Audit, PT&T, Lahore w.e.f 01.01.1981 being a successor to A.G P&T. On the promulgation of Pakistan Telecommunication (Re-organisation) Act, 1996, Pakistan Telecommunication Authority (PTA), Frequency Allocation Board (FAB), National Telecommunication Corporation (NTC) and Pakistan Telecommunication Company Limited were established on 1st January, 1996. After the restructuring of the T&T/PTC, the audit of PTA, FAB and NTC is being conducted under section 15(1) & 41(16) of the Act. The audit of Special Communications Organisation (SCO), National Radio Telecommunication Corporation (NRTC) and Pakistan Post Office (PPO) department continues to remain under the jurisdiction of this office. The Directorate General, PT&T Audit performs both the Certification Audit and Compliance with Authority Audit of the Pakistan Post Office Department. The Certification Audit of other six telecommunications sector entities is conducted by their respective commercial auditors. In their case, the DG Audit (PT&T) is only involved in conducting Compliance with Authority Audit. 2.2 Jurisdiction Sr. No. Principal Accounting Officer (PAO) Departments/Organisations Formations 1. Ministry of Postal Services Pakistan Post Office Deptt. 219 2. Ministry of Information Technology Special Communication Organisation (SCO) 11 3. National Telecommunication Corporation 41 4. Telephone Industries of Pakistan (TIP) 01 5. Cabinet Division Pakistan Telecommunication Authority 05 6. Frequency Allocation Board 01
information about them is accurate. Check for a sample of expenditures (identified in General Ledger) that they have been recorded correctly in the Fixed Assets Ledger and that they are on site, according to location information in Ledger, and that they are operational and being used. For any items still in storage, or non-commissioned, determine reasons for non-functional state. For any assets not delivered, determine why payment was made before delivery. (May need to follow-up on contract arrangements.) {DFR Chapter-6, Rule 6.17, 6.28 & 6.30} Fixed Assets Addition (Purchases) Check for a sample of additions that: Budget was approved for the particular purchase. Purchase Indent is approved by the competent authority. Tendering process was done in accordance with Punjab Procurement Rules 2009 (PPR-2009). Purchase Order generated in favour of selected/approved supplier. For the sample of purchased items during period audited, check that the cost listed in the Fixed Assets Register is the same as the purchase price (including cost of installation & commissioning) and check against supporting documentation. {Chapter-V, VI & VII of PPR 2009} Transfer in For items transferred in, check whether any transfer payments were made and if so whether for an appropriate amount. Check that any donation/gift of fixed asset received, met the requirements of the Accounting Policies and Procedures Manual- APPM {Para-13.4.3- Donations/gifts of fixed assets}.
8.4 Key Tasks and Responsibilities: Audit Planning Phase Guideline reference TASKS RESPONSIBILITIES AO/AD DD D DG 5.4 Determining Audit objectives and scope. P 5.5 Listing/ Updating Points for attention at next audit. P S R 5.6 Preparing/Issuing Entity communication letter. P R A 5.7 Preparing Audit planning memorandum. P R 5.8 Revising Memorandum on post-planning changes. P R 5.9 Scheduling Important dates. P R 5.10 Preparing Tour Program. P S R A 5.11 Pursuing Information requested from entity officials. P S 5.12 Preparing Materiality assessment form P R A 5.13 Computing Expected aggregate error and planned precision form. P R 5.14 Preparing Audit risk assessment form. P R 5.15 Preparing Inherent risk assessment form. P R 5.16 Developing Internal control questionnaire - controls for overall environment. P R 5.17 Documentation of the internal control questionnaire – general computer controls. P R 5.18 Documenting Internal control questionnaire – application controls. P R 5.19 Developing Control risk assessment form. P R 5.20 Documenting Analytical procedures assurance form. P R Updating optimum combination of procedures. P R 5.21 Documenting Source of audit assurance form. P R 5.22 Listing all applicable laws and regulations. P S R 5.23 Documenting and Updating Sample selection checklist. P S R
5.24 Preparing High value item selection form. P R 5.25 Preparing Key item selection form. P R 5.26 Computing Sample sizing for tests of internal control. P R 5.27 Calculating Sample size for substantive tests of details. P R 5.28 Documenting Checklist of accounting estimates to be reviewed. P R 5.29 Recording Points for attention at next audit. P S R 5.30 Documenting Audit planning checklist. P R A 8.5 Key Tasks and Responsibilities: Audit Execution Phase Guideline reference TASKS RESPONSIBILITIES AO/AD DD D DG 6.4 Documenting Summary of Analytical Review Procedures Performed. P R 6.5 Documenting Details of Analytical Review Procedures Performed. P S R 6.6 Documenting Internal Control Questionnaires. P R 6.7 Documenting Internal Control Deviations Form. P R 6.8 Preparing Internal Control Deviations Summary. P R 6.9 Preparing Compliance Summary. P R 6.10 Documenting Substantive Tests of Accounting Estimates. P R 6.11 Identifying and listing Errors in Accounting Estimates. P R 6.12 Documenting Substantive Test Sample Summary for each Audit Program. P S R 6.13 Preparing Substantive Test of High Value/Key Items – Summary. P R 6.14 Documenting Details of Errors in Samples, High Value Items and Key Items. P R
7.19 Recommending Auditor’s Opinion P R-A 7.20 Following up the Continuity Schedule P R-S 7.21 Reviewing the Quality Assurance Checklist P R 8.7 Key Tasks and Responsibilities: Audit Quality Assurance Guideline reference TASKS RESPONSIBILITIES AO/AD DD D DG Planning 5.3 Review that Planning has been carried out as per the recommended planning process. R S FAM 15.3.6 Assigning Appropriate staff, required strength and skill set of the audit team. P R FAM 15.3.7 Preparation, revision and approval of the Audit Budget. P R A 5.30 Ensuring that audit programs are in place as required in Audit Policy Checklist. P R Execution 5.8 Ensuring revision of the planning decisions, if required. P R A Supervision of all phases of execution as per the tasks assigned in “key tasks related to execution phase” list. P To ensure review of audit working paper files. P R S 6.16 To ensure executing audit steps as per the Audit Programs. P R S Ensuring reporting and monitoring of audit activities with reference to “execution task list.” P R-S Evaluation & Reporting 7.3 To ensure detailed review and approval of monetary errors, compliance with authority Violations and internal control deviations found. P R-S A 7.15,7.16,7.18 Ensuring tools for the auditor’s opinions and statements are used. P S R 7.17 Ensuring Documentation of Audit Completion Checklist. P R-S A 7.21 Reviewing the Quality Assurance P R A
Understanding of Entity’s Business Form PF- I Understanding of Entity’s Business – Status of Entity Name of Entity/Organisation: Principal Address: Secretary, Ministry of Defense, Pak. Secretariat – II, Rawalpindi Managing Director, NRTC Haripur, NWFP Status of the Entity: (Government/autonomous/centralised/self-accounting/exempt/other) Corporation Inter-Governmental Relationship: (Attached department, branch office, etc.) Working under the Ministry of Defense OFFICE OF THE DIRECTOR GENERAL PT&T AUDIT, LAHORE PERMANENT FILE Form PF- II
Audited Accounts AUDITOR-GENERAL OF PAKISTAN AUDIT PLANNING-PERMANENT FILE Form PF- VIII Understanding of Entity’s Business – Key Contacts Name of Entity/Organisation: The auditor should list the names and contact information of key personnel at all management levels of the entity. Key Management Personnel Name Title Tel. Fax Email Entity/ Department/ Unit Managing Director 0995-611728 0995-610933 District/ Local Office/ Formation Manager operations 0995-612578 -do-
AUDITOR-GENERAL OF PAKISTAN AUDIT PLANNING-PERMANENT FILE Form PF- IX Understanding of Entity’s Business – Significant Audit Areas Name of Entity/Organisation Significant Audit Areas Receipts Stocks Production process Procurements and Installation of Apparatus and Plants Construction and maintenance of buildings Maintenance of Apparatus and Plants Employees related expenses payments Annual Audited Accounts AUDITOR-GENERAL OF PAKISTAN AUDIT PLANNING-PERMANENT FILE Form PF- X Understanding of Entity’s Business – Significant Accounting Policies Name of Entity/Organisation: Significant Accounting Policies