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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive:

A. Financial Statements and Related Disclosures

Primary Substantive Procedures
Procedure - Nature and Extent Documentation, findings or rationale if PSP not applicable Assertions WP/Ref. Sign off

P Other Substantive Procedures

Procedure - Nature and Extent Documentation and findings
We have ensured no during our audit work that no other transaction is related as related party

Assertions
(C, P&D)

WP/Ref.

Sign off

P
1 We have asked the client to provide details regarding any transactions which is under related party influence CHANGAI Z 10/6/201 2

C. Cash including bank balances

Primary Substantive Procedures
Procedure - Nature and Extent
1 Obtain a complete list of bank accounts (debit and credit balances) as well as related loan and similar contracts. Obtain, at a minimum, bank confirmations for all major depository and disbursement accounts, and bank accounts closed during the year and other accounts as appropriate, based on the nature of the accounts (e.g., we may decide not to confirm some imprest bank accounts, pass-through bank accounts, or non-operating bank accounts with limited activity) to confirm the relationship with the bank including contingencies, liens, pledges, restrictions on the client's assets, guaranteed amounts etc. Document in the workpapers the rationale for the selection of bank accounts for confirmation.

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M, R&O)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
2 Examine the client's bank reconciliation as of year-end, including cash-in-transit accounts (e.g., in subledgers), to verify the proper reconciliation of bank statements and general ledger accounts. Test cutoff of cash receipts and cash disbursements for transfers between different bank accounts at the balance sheet date. Test appropriate valuation of cash and cash equivalents (including overdrafts) in foreign currencies. Year end 6/30/2012 Prepared by: CH 9/29/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 Reviewed by: Executive:

(C, E/O, V/M)

3 4

(C, E/O) (V/M)

Other Substantive Procedures

Procedure - Nature and Extent
TDR certificates physically verified

Documentation and findings

Assertions
(C, E/O)

WP/Ref.

Sign off

P
5 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2

Balance confirmations sent to all banks

(C, V/M)

TR 40 prepared

(C)

E. Accounts Receivable trade

Primary Substantive Procedures
Procedure - Nature and Extent
1 2 Agree receivables subledger to the general ledger control account and investigate large and unusual reconciling items. Verify the existence of accounts receivable trade through confirmation, examination of subsequent cash receipts, or other alternative procedures, as appropriate. Consider using the audit risk tables or EY MicroSTART to

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O) (E/O, V/M, R&O)

WP/Ref.

Sign off

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
determine the extent of the sample or document the rationale for the sample selection in the workpapers. 3 If accounts are verified at an interim date, review the roll-forward of activity from the interim date to the balance sheet date in a manner responsive to our combined risk assessment and compare level of activity with prior periods. Investigate unusual items; consider confirming (at the balance sheet date) significant new accounts and those accounts with significant increases or decreases between the interim date and the balance sheet date. Perform analytical procedures to identify peaks in sales volume in the last few days or weeks of the year and test cutoff by inspecting sales register, billings, shipping documents and other supporting documents before and after the year-end date. Where we perform substantive procedures at an interim date, we perform cutoff testing at that date also. Evaluate the adequacy of the allowance for doubtful accounts, including the appropriateness of the methodology used to calculate the allowance. Evaluate the adequacy of other adjustments to accounts receivables, such as rebates, credit memos, discounts. Test appropriate valuation of accounts receivables in foreign currencies. Inquire about or review the list of credit balances and investigate large items. (C, E/O, V/M) Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive:

(C, E/O)

(V/M)

6 7 8

(V/M) (V/M) (C, E/O)

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Assertions
(C, V/M)

WP/Ref.

Sign off

P
9 Balance confirmations circularised to selected customers CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2

10

Subsequent clearence check

more than 80% of the balances have been received after the year end

(C)

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 CHANGAI Z 10/6/201 2 Reviewed by: Executive:

11

Aging analysis and Aging test performed on selected customers

only 380,000 of the amounts related to above 360 days

(C)

F. Inventories
Primary Substantive Procedures
Procedure - Nature and Extent
1 Observe the taking of physical inventories. Verify that client count instructions are followed and that inventories owned by others are separated. Perform appropriate test counts and trace test counts to the inventory compilation. 2 If significant, confirm inventories held by others at the physical inventory date and trace confirmed quantities to the inventory compilation; consider observing these physical inventories as well. Review the reconciliation of the valued physical inventory compilation with the general ledger account balances and the perpetual inventory records. Investigate large and unusual reconciling items. 4 5 6 If inventories are taken at an interim date, review the roll-forward documentation in a manner responsive to our combined risk assessment and investigate unusual items. Trace the cutoff information obtained during the physical observation to the accounting records of sales and purchases. Test the valuation of inventory to verify that it is performed in accordance with the client's accounting policies or applicable financial reporting framework. Test the allowances to reduce the valuation of inventory to net realizable value, e.g., reserves for slow moving items, obsolescence or lower of cost or market. (C, V/M) (C, E/O) (V/M) CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 (C, E/O, R&O) CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M, R&O)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012

(C, V/M)

(V/M)

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive:

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Assertions
(assertions)

WP/Ref.

Sign off

P
8

J. Long-term receivables
Primary Substantive Procedures
Procedure - Nature and Extent
1 Verify the existence and ownership of long-term receivables through confirmation or examination of supporting documentation. Test the carrying amounts of long-term financial assets. Use information obtained during the audit in determining whether management has identified appropriate indicators of impairment and verify that appropriate adjustments are made in accordance with the applicable financial reporting framework.

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012

2 3

(V/M) (V/M)

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Assertions
(assertions)

WP/Ref.

Sign off

P
4

K. Property, plant and equipment

Primary Substantive Procedures
Procedure - Nature and Extent
1 Obtain a schedule of property, plant and equipment, including

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M)

WP/Ref.

Sign off

P
CHANGAIZ

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
capitalized leases, and related additions, disposals, reclassifications and depreciation, depletion and/or amortization (PPE subledger) and agree balances to the respective general ledger accounts. 2 For significant additions (including capitalized labor, borrowing costs and other acceptable costs) and disposals during the year, examine invoices, capital expenditure authorizations, leases and other data that support these additions and disposals. Also, where applicable, review the ratio of labor capitalized versus expensed and compare to prior year and expectations. Review and examine support for rentals under operating leases and for significant charges to repairs, maintenance and other expense accounts to determine if they should be capitalized as property, plant and equipment. Review reasonableness of depreciation, depletion and amortization charge by reference to the client's accounting policy or applicable financial reporting framework and expectation for current year. Use information obtained during the audit in determining whether management has identified appropriate indicators of impairment. (C, E/O, V/M, R&O) Year end 6/30/2012 Prepared by: CH 9/29/2012 10/6/2012 Reviewed by: Executive:

CHANGAIZ 10/6/2012

(C, E/O)

CHANGAIZ 10/6/2012

(V/M)

CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012

(V/M)

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Assertions
(C, V/M)

WP/Ref.

Sign off

P
6 Vouching done on addition of Fixed assets during the year CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2

Physical existence of additions of Fixed assets seen

all assets purchased are existing in the company premises

(E/O)

Predictive testing work performed on depreciation

the difference has been reconciled and os below our SAD

(C)

(assertions)

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive:

L. Intangibles, including Goodwill

Primary Substantive Procedures
Procedure - Nature and Extent
1 Obtain a schedule of intangibles, including goodwill, and test the bases on which additions, amortization and disposals are recorded. Examine invoices, authorizations, contracts, agreements, and other data that support ownership of intangibles capitalized and disposed of during the year. 2 Determine whether write downs are required, in accordance with the entity's accounting policies or applicable financial reporting framework to reflect impairment of the carrying amounts of intangible assets or goodwill. (V/M) CHANGAIZ 10/6/2012

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Difference is belowe our SAD

Assertions
(assertions)

WP/Ref.

Sign off

P
3 Predictive testing work performed on depreciation CHANGAI Z 10/6/201 2

N. Accounts payable, trade

Primary Substantive Procedures
Procedure - Nature and Extent
1 Agree the accounts payable subledger to the general ledger control account and investigate large and unusual reconciling items.

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
2 Inquire about or perform a review of the accounts payable subledger for unusual items, e.g., significant debit balances in the accounts payable subledger or other unexpected amounts to verify proper classification and valuation. Perform cutoff tests for goods and services received as well as for supplier credit memos to verify that transactions are completely recorded in the correct period. Perform a search for unrecorded liabilities at the year-end date by selecting subsequent disbursements and unmatched invoices and receiving reports. Test appropriate valuation of accounts payable in foreign currencies. Year end 6/30/2012 Prepared by: CH 9/29/2012 CHANGAIZ 10/6/2012 Reviewed by: Executive:

(C, E/O, V/M)

(C, E/O)

CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012 CHANGAIZ 10/6/2012

4 5

(C, V/M) (V/M)

Other Substantive Procedures

Procedure - Nature and Extent
subsequent clearence checked

Documentation and findings

about 83% of the payments have been paid off to the concerned parties

Assertions
(C, V/M)

WP/Ref.

Sign off

P
6 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2

Test of unrecorded liabilities performed

no such items are found

(C)

Aging analysis prepared

(assertions)

T. Equity
Other Substantive Procedures
Procedure - Nature and Extent Documentation and findings WP/Ref. Sign off

P
1 documents acquired: Form 29, Form 28, Form 27, Third schedule, memorandom and articles of association CHANGAI Z 10/6/201

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 2 Reviewed by: Executive:

UA. Revenue/Sales
Primary Substantive Procedures
Procedure - Nature and Extent
1 Perform an overall analytical review for all significant income statement accounts and investigate any significant changes or lack of expected changes, e.g. by means of computer-assisted audit techniques (CAAT). Include those accounts not already covered through balance sheet account testing. Perform revenue recognition procedures (if not already covered by tests of accounts receivables, trade and intercompany), for example, -analytical procedures using disaggregated data (e.g., by month, by product line, by geographical area, by segment), -inquiry of sales and marketing personnel for any unusual transactions or similar items, -review of the terms of sales agreements - including sales incentives- and client's policies for handling returns, to identify potential unusual transactions or events. 3 1) Evaluate the clients ability to reasonably estimate future product returns to support revenue recognition at the time of delivery. 2) Perform procedures to evaluate the accrual for future product returns. 3) Investigate significant or unusual changes from the prior period based on actual sales returns in the current period to determine whether the current year accrual for future product returns may require adjustment. (E/O, V/M) CHANGAIZ 10/6/2012

Documentation, findings or rationale if PSP not applicable

Assertions
(C, V/M)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012

(E/O, V/M)

CHANGAIZ 10/6/2012

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Assertions

WP/Ref.

Sign off

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive:

P
4 Training courses verified with attendence sheets and their relative fee schedules (C, V/M) CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2 CHANGAI Z 10/6/201 2

Vouching of bank receipts done to ensure completeness of revenue from each customer

(C, V/M)

Sales cross compared with cost sheets and their related job orders to ensure completness of Revenue booked

(C, V/M)

VA. Cost of Sales

Primary Substantive Procedures
Procedure - Nature and Extent
1 Obtain detail of cost of sales accounts in comparison with the prior period. Investigate and explain major changes, large or unusual transactions, or the lack of expected changes, if not already covered through analytical review of sales accounts including gross margin analysis. 2 Review the appropriateness of large and unusual expenses. (E/O, V/M) CHANGAIZ 10/6/2012

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M)

WP/Ref.

Sign off

P
CHANGAIZ 10/6/2012

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Assertions
(C, E/O, V/M, R&O) (C, E/O, V/M, R&O)

WP/Ref.

Sign off

P
3 4 Vouching done of each account head above TE and evidences obtained in hard copy Basis of expenses in direct cost examined and verified its appropriatness by taken materials issue notes, salaries for Labor cost, depreciation rates as per their useful life, CH CH

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Karachi Tools, Dies and Moulds Centre ES03 Complete Audit Program
Year end 6/30/2012 Prepared by: CH 9/29/2012 Reviewed by: Executive:

Utilities as per hourly usage

VD. Administrative and Other Expenses

Primary Substantive Procedures
Procedure - Nature and Extent
1 Understand contents of administrative and other expense accounts, e.g., in the areas of professional services fees, repairs and maintenance, leases and rents, management compensation, political contributions and donations, and miscellaneous. Compare with previous period and investigate any unusual transactions. 2 For significant transactions identified in the previous step, review underlying documentation for reasonableness and business purpose. Verify through a review of lawyers? fees that all lawyers and in-house legal counsels, who handle significant litigation or other claims, have been covered in the lawyers? confirmation work. (V/M) CH

Documentation, findings or rationale if PSP not applicable

Assertions
(C, E/O, V/M)

WP/Ref.

Sign off

P
CH

(C)

CH

Other Substantive Procedures

Procedure - Nature and Extent

Documentation and findings

Assertions
(C, E/O, V/M, R&O)

WP/Ref.

Sign off

P
4 Vouching done of each account head above TE and evidences obtained in hard copy CH