ENGAGEMENT TIMELINE FOR ACCOUNTING PROCESS AND TAX REVIEW
FOR SOON POH TECHNOLOGIES, INC.
Estimated no. of days Performed Estimated Actual
to complete Action By Purpose Completion Completion Date Date 1 Obtain preliminary documents and ELH, Liza, Moda, 1 schedules Ana To prepare data for examination 1 2 Draft audit timeline ELH
1 3 Agree on timeline ELH/JL
4 Signing of Engagement Letters by Need to have official agreement for managed
1 Soon Poh Management JL audit 5 Examine one project/contract with 3 Client ELH To determine taxability 3 6 Examine another sample projects ELH To determine taxability 7 Gather documents and information Verify that the data is available for every period 2 regarding actual taxes filed to BIR Liza, Moda within time frame in review 8 Reviews transactions and identify 1 questions 3 9 Examine Accounts Receivables ELH, Liza 10 Gather controllable forms and Establish present existence of necessary 1 documents ELH, Liza controls and checks 11 Verify that no period had unusual level of 2 Analyze month to month taxes Liza, Moda activity that may warrant further scrutiny 12 Identify vendors needing to be separately Vouching suppliers/disbursement examined or to determine materiality of 3 transactions Liza, Ana particular vendors 13 Search for revenue issues that needs to be 2 Walk Through the Revenue Process ELH, Moda, Ana checked 14 Identify costs that should be taken up for 2 Walk Through the Cost of Sales ELH, Moda, Ana accrual or for WIP 15 Verify that no period had unusual level of activity that may warrant a separate 3 Analyze month to month financials ELH, Liza examination. 2 16 Analyze month-month taxes ELH, Liza Identify accounts that have a tax exposure 17 Review the sample selected fr extraordinary 2 Evaluate tax filings ELH, Liza transaction and duplicate transactions 18 Walk through the Bank Recon Ensure complete collection of receipts and 2 Process Liza disbursements on record 19 FS review & accounts of interest 4 selection, and account grouping ELH Revalidate transactions
20 Generate monthly Should-Be
3 Revenue & Cost Analysis Ana Select items to be sampled or detailed
21 Check availability of Risk
1 Management Strategies ELH, Liza To assess risks and exposures 22 2 Examine Asset Lapsing Schedules ELH, Liza To asses risks and exposures
23 Identify costs that should be taken up for
1 Examination of standard costs ELH, Randy accrual or for WIP
24 Design relevant formats to guide in To prescribe a simple but understandable and
Revenue recognition and costs take systematic process of taking up revenues and 2 up ELH, Moda, Ana costs 25 Determine Should-be tax filings ELH, Moda, Ana To support taxability conclusions 26 Analyze any gray areas and find 3 suggestion to minimize/zero them out ELH To support taxability conclusions 27 Calculate error rate based on Should 2 be tax due vs. Actual filings ELH To support taxability conclusions 28 Advise to revise tax filings as 2 necessary ELH, Moda To proactively minimize tax exposure 1 29 Submit progress report 30 Identify costs that should be taken up for 2 Examination of the payroll reports ELH, Liza, Moda accrual or for WIP Examination of alpha list reports vs. 2 actual payrol ELH, Liza, Moda Identify errors in withholding taxes 31 Consultant and taxpayer meet to discuss reports, recommendations ELH, JL, Liza, 1 and possible adjustments Moda To discuss issues and concerns 32 To determine any disagreements with the 3 Review and finalize results Both parties results 1 Sharing of Best Practices ELH For additional tips 33 Suggest priority policies and 2 procedures, prepare samples ELH For additional tips 34 Consultant and taxpayer meet to discuss reports, recommendations 1 and possible adjustments Both parties Closure of the Engagement
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