5 Wah Industries Ltd Compliance with Authority &Certification 6 National Book Foundation EDUCATION DIVISION Compliance with Authority 7 Pakistan Environment Planning and Architectural Consultants (Pvt) Limited ENVIRONMENT DIVISION Compliance with Authority 8 Agricultural Marketing and Storage (Pvt) Limited FINANCE DIVISION Compliance with Authority 9 Federal Bank for Compliance with Authority 10 and Medium Enterprises Bank Limited Compliance 11 Zarai Taraqiati Bank Limited Compliance with Authority 12 Pakistan Revenue Automation (Pvt) Limited REVENUE DIVISION Compliance with Authority 13 Pakistan Agricultural Storage and Services Corporation Limited FOOD, AGRICULTURE AND LIVESTOCK DIVISION Compliance with Authority 14 Livestock And Dairy Development Board Compliance with Authority 15 National Institute of Health HEALTH DIVISION Compliance with Authority 16 National Construction Limited HOUSING AND DIVISION Compliance with Authority 17 Pakistan Housing Authority Compliance with Authority 18 State Engineering Corporation (Pvt) Limited INDUSTRIES, PRODUCTION AND SPECIAL INITIATIVES DIVISION Compliance with Authority 19 Heavy Electrical Complex (Pvt) Limited Compliance with Authority 20 Heavy Mechanical Complex (Pvt) Limited Compliance with Authority 21 Pakistan Machine Tool Factory (Pvt) Limited Compliance with Authority
Government of the Punjab 1 Agricultural Engineering &Well Drilling AGRICULTURE DEPARTMENT Compliance with Authority 2 PAD&SC (Defunct), Lahore Compliance with Authority 3 Punjab Seed Corporation Compliance with Authority 4 Punjab Teachers Foundation EDUCATION DEPARTMENT Compliance with Authority 5 Punjab Education Foundation Compliance with Authority 6 Government Opium & Alkaloid Factory EXCISE & TAXATION DEPARTMENT Compliance with Authority 7 Punjab Pharmacy Council Lahore HEALTH DEPARTMENT Compliance with Authority 8 Punjab Health Foundation Compliance with Authority 9 Government Medical Store Depot, Lahore Compliance with Authority 10 Government Printing Press Bahawalpur INDUSTRIES DEPARTMENT Compliance with Authority 11 Government Printing Press Lahore Compliance with Authority 12 Punjab Small Industries Corporation (PSIC) Compliance with Authority 13 Punjab Industrial Dev. Board (Defunct) Lahore Compliance with Authority 14 Irrigation Workshops Division Mughalpura Lahore IRRIGATION DEPARTMENT Compliance with Authority 15 Punjab Employees Social Security Institution (PESSI) Lahore. LABOUR & HUMAN RESOURCE DEPARTMENT Compliance with Authority 16 Punjab Mineral Development Corporation (PUNJMIN) MINES & MINERAL DEPARTMENT Compliance with Authority 17 Punjab Information Technology Board (PITB) PLANNING & DEVELOPMENT DEPARTMENT Compliance with Authority 18 Punjab Bait ul Mal Lahore SOCIAL WELFARE DEPARTMENT Compliance with Authority
19 Tourism Development Corporation of Punjab (TDCP) TOURISM & RESORT DEVELOPMENT DEPARTMENT Compliance with Authority 20 Technical Education and Vocational Training Authority TEVTA Compliance with Authority Government of N.W.F.P 1 Agricultural Engineering Workshops AGRICULTURE LIVESTOCK & COOPERATION DEPARTMENT Compliance with Authority 2 Forest Dev: Corporation Peshawar ENVIRONMENT DEPARTMENT Compliance with Authority 3 Provident Investment & Pension Funds FINANCE DEPARTMENT Compliance with Authority 4 Sarhad Development Authority (SDA) +IEs+ EPZ +Projects INDUSTRIES, COMMERCE, MINERAL DEVELOPMENT & TRANSPORT DEPARTMENT Compliance with Authority 5 Small Industries Development Board, (SIDB) Peshawar Compliance with Authority 6 Sarhad Mineral Ltd (SML), Peshawar Compliance with Authority 7 Government Stationary and Printing Department Peshawar PRINTING AND STATIONERY DEPARTMENT Compliance with Authority 8 Sarhad Tourism Corporation Peshawar SPORTS , CULTURE , TOURISM, ARCHAEOLOGY & MUSEUMS DEPARTMENT Compliance with Authority 9 Arbab Niaz Stadium, Peshawar Compliance with Authority 10 Abaseen Construction Company Peshawar WORKS & SERVICES DEPARTMENT Compliance with Authority Commercial Audit and Evaluation(South) 1 Pakistan Petroleum Limited Petroleum & Natural Resources Compliance with Authority Audit 2 State Bank of Pakistan Finance Compliance with Authority Audit
3 Pakistan State Oil – PSO Petroleum & Natural Resources Compliance with Authority Audit 4 Sui Southern Gas Company Petroleum & Natural Resources Compliance with Authority Audit 5 State Life Insurance Corporation Commerce Compliance with Authority Audit 6 Employee Old Age Benefit Institution Labour & Manpower Compliance with Authority Audit 7 Pakistan Steel Mills Corporation Industries, Production & Special Division Compliance with Authority Audit 8 Pakistan National Shipping Corporation Ports & Shipping Compliance with Authority 9 Pakistan International Airlines Defence Compliance with Authority Audit 10 Sky (Pvt) Limited Defence Compliance with Authority 11 Gawadar Port Authority Ports & Shipping Compliance with Authority Audit 12 Gawadar Implementation Authority Ports & Shipping Compliance with Authority Audit 13 Gawadar Fish Harbour Ports & Shipping Compliance with Authority Audit 14 Export Processing Zone Authority Industries, Production & Special Division Compliance with Authority Audit 15 Trading Corporation of Pakistan Commerce Compliance with Authority Audit 16 Pakistan Reinsurance Company Limited Commerce Compliance with Authority 17 National Insurance Company Limited Commerce Compliance with Authority Audit 18 Port Qasim Authority - PQA Ports & Shipping Compliance with Authority Audit 19 HBFC Finance Compliance with Authority 20 Pakistan Security Printing Corporation Finance Compliance with Authority Audit 21 PIDC Industries, Production & Special Division Compliance with Authority Audit 22 Pakistan Institute of Management Industries, Production & Special Division Compliance with Authority Audit 23 Sindh Engineering Limited Industries, Production & Special Division Compliance with Authority Audit
24 Industrial Development Bank Of Pakistan Finance Compliance with Authority Audit 25 Karachi Shipyard and Engineering works Limited Defence Production Compliance with Authority Audit 26 Pakistan Fabricating Company Limited Industries, Production & Special Division Compliance with Authority 27 Baluchistan water & Sanitation Authority Public Health Engineering Compliance with Authority Audit 28 Agricultural Engineering Workshop - Sindh Agricultural Compliance with Authority Audit 29 Quetta Development Authority Planning & Development Compliance with Authority Audit 30 Light House & Light Ship Department Ports & Shipping Compliance with Authority Audit 31 Agricultural Engineering Workshop - Quetta Agricultural Compliance with Authority 2.3 Organogram of DG, Commercial and Evaluation Directorate General Commercial Audit and Evaluation (North) Directorate General Commercial Audit and Evaluation (South)
of accounts. Summary of accounting policies used by the auditee entity. Special remuneration, if any, for senior officers. Previous audited Financial Statements. Others as appropriate. Policies and Procedures Manuals may be in the Permanent File, if they are brief or, alternatively, a copy should be in the auditor’s bookcase or filing cabinet. Note: the supporting documentation is voluminous, the auditor may decide to include only a reference to the title of the documentation and its physical location rather than keeping the whole document in the Permanent File. 4.2 The Audit Team’s Responsibility The audit team is responsible for gathering the information required to be put in the set of working papers associated with the Permanent File. These are listed in the next section. The preparation of Permanent File for the first time will be a time-consuming exercise and sufficient audit resources should be allocated to this task in the audit resource plan. For subsequent audits of the same type for the same entity, the audit team simply needs to confirm that the information is still relevant, and to update the Permanent File at planning stage where necessary. The dates on which updates occurred should be recorded on the Update Control Sheet (Form PF) provided. Members of the audit team should be familiar with the information in the Permanent File as it is required to have an understanding of the entity’s business in order to check that an effective and efficient audit is conducted. It needs to be highlighted that the audit strategy and methodology recommended under FAM provide for continued quality assurance through all the phases of audit. While reviewing the permanent file, the functionaries entrusted with the quality assurance of audit should ensure that the various steps recommended in these Guidelines and respective forms have been completely followed in all respects. 4.3 Documentation in Permanent File Titles of various forms specified in the Audit Working Papers Kit are listed below: Update Control Sheet (PF) Status of the Entity (PF-I) Background Information (PF-II) List of Auditable Locations (PF-III) List of Bank Accounts (PF-IV) List of Authorized Signatories (PF-V) External Factors (PF-VI) Accounting Records and Accounting Key Controls (PF-VIII) Significant Audit Areas (PF-IX)
5.12 Materiality Assessment Form Materiality can be defined as follows: “An error (or the sum of the errors) is material if the error (or the sum of the errors) is big enough to influence the users of the Financial Statements”. Assessing materiality is an important aspect of modern systems-based audits. This form provides guidelines and suggestions for assessing an appropriate materiality amount for the audit at hand. Note: For a comprehensive discussion on Materiality, see section 7.3.l and Appendix D of FAM. 5.13 Expected Aggregate Error and Planned Precision Form values which are important in determining appropriate sample size and in evaluating the results of the audit are expected aggregate error and planned precision. This form provides detailed instructions for arriving at these values for the audit at hand. 5.14 Audit Risk Assessment Form It is important that the team establishes an appropriate level of risk for the audit. The concept of risk is very important in planning system-based audits and is discussed at length in sections 7.7 and 7.8 of the Financial Audit Manual. This form is used to identify whether there are any particular factors that would cause the auditor to reduce the level of risk he or she is willing to accept, therefore requiring additional audit work to be planned so as to raise the level of audit assurance. The auditor should be observant for any possible risks that could affect the financial and operational performance of organization. The auditor should decide what aspects of these risks to take into account when planning the audit. 5.15 Inherent Risk Assessment Form Inherent risk is the chance of material error occurring in the first place assuming that there are no internal controls in place. “Material error” may be a single error or the sum of multiple smaller errors. This form indicates some factors which may influence the auditor’s assessment of inherent risk. Inherent risk should be assessed for each Financial Audit and compliance with authority objective. However, because the auditor’s assessment of inherent risk may be the same for multiple objectives or components, this form can be used to capture risk for each group of objectives or components that the auditor wishes to treat in the same manner.
At least for large transactions and transactions close to year end, conduct physical check on existence of goods and services (if these are distant from site where conducting audit, may seek confirmation in writing from appropriate entity’s officials) Review suspense account for un-cleared payments or for inappropriate clearances Reconcile total expenditures on product/material with the amount recorded in the ledger. Check that all material recorded as acquired in the year are charged against that year. For the sample of transactions, check that the documentation (purchase order / purchase authorisation / invoice / delivery receipt / any receiving documentation / payment) is consistent in quantity, pricing, product description (particularly checking for substitution of lower quality/grade product) Check whether the individual items add up to the total given on the voucher / purchase order and the appropriate amounts of tax have been supplied Follow up on any short-fall / substitution / missing items / multiple deliveries to ensure that only what was received was paid for Check that the invoice and payment have proper prices applied (include any negotiated prices or other arrangements) and reflect correct freight charges if applicable. Check also that any payment advances have been properly reflected in the invoice and correspondingly deducted from payment Check arithmetical accuracy of the invoices Check inclusion of applicable guarantees, service support etc. If any products / services to provide maintenance or parts for a product (i.e. an expenditure to service a product previously acquired) are included in the sample of transactions, check that no payments were made for maintenance / replacement parts that should have been covered by warranties. Check in case of late delivery, whether any penalties apply under contract and if so, whether payment was adjusted accordingly Check for any duplicate payments (see application of CAAT / analytical review under Analytical Review activity) Check that proper authority to enter into the acquisition process and that the size of the purchase is within the authority limit of the authorizing officer. (In the cases of large purchases) Check for supporting material to justify the acquisition of materials: identify in budget are proper defining the needs and requirements.
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 A= Approve, R= Review, S=Supervise, P=Perform 8.5 Key Tasks and Responsibilities: Audit Execution Phase TASKS RESPONSIBILITIES
7.10 Calculating Substantive Evaluation – Summary. P S-R 7.11 Documenting Achieved Level of Assurance Form. P R 7.12 Evaluating Error in Each Component. P R S 7.13 Summarizing and preparing Overall Error in Financial Statements. P R S 7.14 Documenting Violations. P P-S R 7.15 Drafting Checklist of Management Representation Letter. P S R 7.16 Obtaining Management Representation Letter. P R 7.17 Documenting Audit Completion Checklist. P R-S A 7.18 Memorandum Supporting Signature. P R A 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 A= Approve, R= Review, S=Supervise, P=Perform 8.7 Key Tasks and Responsibilities: Audit Quality Assurance
* The Comprehensive Quality Assurance Checklist present in the Audit Working Papers Kit covers all the phases of audit. This checklist is the master guide for assuring the quality of audit processes throughout the audit cycle. Guideline Reference RESPONSIBILITES AO/Assistant Director Deputy Director Director Director General 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 R-S 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 P
7.15,7.16,7.18 Ensuring tools for the auditor’s opinions and statements are used. P S R P 7.17 Ensuring Documentation of Audit Completion Checklist P R-S A P 7.21 Reviewing the Quality Assurance Checklist. * P R A P A= Approve, R= Review, S=Supervise, P=Perform ANNEXURE Permanent File of Nespak (Pvt) Limited Main Reference Supporting Schedules Done by: PF PF-I PF-II PF-III PF-IV PF-V PF-VI PF-VII Update Control Sheet Status of the Entity Background Information List of Auditable Locations List of Bank Accounts List of Authorised Signatories External Factors Accounting Records and Accounting System SJH -do- -do- -do- -do- -do- -do- -do- 09.02.10 -do- -do- -do- -do- -do- -do- -do-
Key Management Personnel Name Title Tel. Central Office Finance and Accounts Asad I. A. Khan Amir Rashid Managing Director Executive Vice President (042) 99231911 (042) 99231912 (042) 99231927 Overseas Division Power Division Water Division Highway Division Architecture Div Islamabad Office Karachi Office M. Ajmal Jameel Mehdi Hassan Javed Afridi Qazi Iftikhar Ahmed M. Ilyas Malik Wasim Ul Haq Ansari Ejaz Saeed Khan Vice President Vice President General Manager Vice President Vice President Regional Manager Vice President (042) 99230975 (042) 99231935 (042) 99231939 (042) 99231934 (042) 99231920 (051) 99221993 (021) 5635804 AUDITOR-GENERAL OF PAKISTAN PERMANENT FILE Form PF- IX Understanding of Entity’s Business – Significant Audit Areas Name of Entity/Organisation: National Engineering Services Pakistan (Private) Limited Significant Financial Statement Components Critical Audit Area Y/N
Property, Plant and Equipment Assets subject to finance lease Intangible assets Capital work in progress Investments Loans and advances Long term security deposits Deferred tax assets Drawing and Stationery stores Contract fee receivable Advances, deposits and prepayments Cash and bank balances .Employee retirement benefits Liabilities against finance Current portion of liabilities Creditors and accrued liabilities Provision for tax Consultancy service fee income Share of profit of associate Administrative expenses Financial charges Yes No No Yes Yes Yes No No Yes Yes Yes Yes No No No Yes No Yes Yes No Yes Yes AUDITOR-GENERAL OF PAKISTAN AUDIT PLANNING-PERMANENT FILE Form PF- X Understanding of Entity’s Business – Significant Accounting Policies Name of Entity/Organisation: National Engineering Services Pakistan (Private) Limited Significant Accounting Policies