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ALLAMA IQBAL OPEN UNIVERSITY

MBA Banking & Finance Course. Level Course Code Topic Assigned Name of Tutor Name of Student Roll No Semester

Project Brief

Submitted To:

Submitted By:

Subject Name:

IN THE NAME OF

ALLAH
THE MOST BENEFICENT THE MOST MERCIFUL

Acknowledgements

I am devote this work to my country Pakistan. I also want to express my sincere gratitude\e to my Parents , there guidance & supervision inspired us a lot, my thanks also go to the Bahria Town their employees who made this project possible. And my special thanks go to Sir Raffi without his guidance and technical expertise it was impossible to pile up this project with authenticity, I am saying thanks to all of them for motivating me. All their efforts are sincerely appreciated. Lets all work together to build a better tomorrow for generations to come.

TABLE OF CONTENTS

CHAPTER # 1 Title Page.....01 Project...02 Introduction .............07

CHAPTER # 2 Audit Process .......08 What is Audit Program.......12 Audit Cycle.......13 Audit Program....15 CHAPTER # 3 About Organization...17 Swot Analysis...18

Abstract:
The proper aim of this report to invstigate that what is aduit process & programme, how different organization & companies set therir audit programe, In Every successful audit is based on sound planning and an atmosphere of constructive involvement and communication between the client and the auditor. I see quite a few audit organizations that include a Web-based explanation to their clients how the audit process works. The purpose of providing this page is for those audit organizations that have not explained to their clients how, in general, the audit process works. It also is designed to provide a resource for sharing tools and techniques for each of the distinct phases of the audit process.

Introducation:
Definition of 'Audit'
1. An unbiased examination and evaluation of the financial statements of an organization. It can be done internally (by employees of the organization) or externally (by an outside firm). 2. An IRS examination of a taxpayer's return or other transactions. The IRS performs this examination to verify the accuracy of these filings. An audit opinion is expressed on audited statements. It is required that an auditor state in the opinion that generally accepted accounting principles have been followed that they have been applied on a basis consistent with that used the preceding year.

Types of Audit Opinions:

, and report format and distribution. Assessing the soundness of the internal controls or business systems and operations. Testing the internal controls to ensure proper operation. Unqualified opinion: The unqualified opinion has no reservations concerning the financial statements. This is also known as a clean opinion meaning that the financial statements appear to be presented fairly. Qualified opinion: This means that the auditor has taken exception to

certain current-period accounting applications or is unable to establish the potential outcome of a material uncertainty.

Disclaimer opinion:

This is a special type of audit report that should be

issued when the auditor permits his or her name to be associated with financial statements that were not examined in accordance with generally accepted auditing standards.

Adverse opinion:

This is a type of audit opinion which states that the

financial statements do not fairly present the financial position, results of operations, and changes in financial position, in conformity with generally accepted accounting principles.

The Audit Process

In general, a typical audit includes the following sequential steps: Scheduling an opening conference to discuss the audit objectives, timing Discussing with management all preliminary observations. Discussing with management the draft audit report and their responses, if available, prior to release of the final audit report. Following up on critical issues raised in audit reports to determine if they have been successfully resolved.

Types of Audits and Reviews: Financial Audits or Reviews Operational Audits Department Reviews Information Systems Audits Integrated Audits Investigative Audits or Reviews Follow-up Audits

1. Financial Audit A historically oriented, independent evaluation performed for the purpose of attesting to the fairness, accuracy, and reliability of financial data. CSULB's external auditors, KPMG, perform this type of review. CSULB's Director of Financial Reporting coordinates the work of these auditors on our campus. 2. Operational Audit A future-oriented, systematic, and independent evaluation of organizational activities. Financial data may be used, but the primary sources of evidence are the operational policies and achievements related to organizational objectives. Internal controls and efficiencies may be evaluated during this type of review.

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3. Department Review A current period analysis of administrative functions, to evaluate the adequacy of controls, safeguarding of assets, efficient use of resources, compliance with related laws, regulations and University policy and integrity of financial information. 4. Information Systems (IS) Audit There are three basic kinds of IS Audits that may be performed: i. General Controls Review A review of the controls which govern the development, operation, maintenance, and security of application systems in a particular environment. This type of audit might involve reviewing a data center, an operating system, a security software tool, or processes and procedures (such as the procedure for controlling production program changes), etc. ii. Application Controls Review A review of controls for a specific application system. This would involve an examination of the controls over the input, processing, and output of system data. Data communications issues, program and data security, system change control, and data quality issues are also considered. iii. System Development Review

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A review of the development of a new application system. This involves an evaluation of the development process as well as the product. Consideration is also given to the general controls over a new application, particularly if a new operating environment or technical platform will be used. iv. Integrated Audi This is a combination of an operational audit, department review, and IS audit application controls review. This type of review allows for a very comprehensive examination of a functional operation within the University. v. Investigative Audit This is an audit that takes place as a result of a report of unusual or suspicious activity on the part of an individual or a department. It is usually focused on specific aspects of the work of a department or individual. All members of the campus community are invited to report suspicions of improper activity to the Director of Internal Auditing Services on a confidential basis. Her direct number is 562-985-4818. vi. Follow-up Audit These are audits conducted approximately six months after an internal or external audit report has been issued. They are designed to evaluate corrective action that has been taken on the audit issues reported in the original report. When these follow-up audits are done on external auditors' reports, the results of the follow-up may be reported to those external auditors.

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What Is an Audit Program?

An audit program is a set of polices and procedures that dictate how auditing is to be implemented. It usually involves audit software as well as internal work that is manually performed by an auditor. These measures are generally employed to determine what, and how much, evidence must be collected and evaluated as well as who will collect and evaluate it, and when this should be done. Organizations typically prepare audit programs based on the operational planning activities of the evidence collected and evaluated by an auditor. The audit program is prepared and, if need be, revised in accordance with this evidence. It is documented in the audit working papers, which are the official record that contains the planning and execution of the audit agreement. While the formality of an audit program largely depends on the size of the organization, all programs require certain elements in order to be effective.

Risk assessment:
Risk assessment is one of the most critical components of an audit program. Through this process, risks for specific areas of the business are identified and analyzed. Auditors are encouraged to conduct risk assessment on a consistent basis to keep pace with changes to internal control and various work processes. An organization's level of risk is considered a key aspect in determining how often audits should be performed.

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Audit cycle:
An effective audit program also includes an audit cycle, which simply refers to the frequency of audits. As mentioned above, this frequency is normally determined by conducting risk assessment. There are some factors that could impact the audit cycle, mainly time and audit staff. Even with this knowledge, it is advisable for organizations to not allow such factors to reduce the periods at which audits are performed, especially for areas susceptible to great risk. Doing so could leave the organization vulnerable to substantial risks that have yet to be identified.

Audit Process:
Although every audit project is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report, and Follow-up Review. Client involvement is critical at each stage of the audit process. As in any special project, an audit results in a certain amount of time being diverted from your department's usual routine. One of the key objectives is to minimize this time and avoid disrupting ongoing activities.

Audit planning:
Another essential component of an audit program is audit planning. Although strategies are generally devised with respect to individual organizations, a well-rounded plan is often viewed as one that covers

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scheduling, audit staff needs, reporting, and the overall goals of the audit. Many organizations find that this planning is most efficient when the results of risk assessment are combined with the resources needed to determine the timing and frequency of audits.

Announcement Letter:
The client is informed of the audit through an announcement or engagement letter from the Internal Audit Director. This letter communicates the scope and objectives of the audit, the auditors assigned to the project and other relevant information.

Initial Meeting:
During this opening conference meeting, the client describes the unit or system to be reviewed, the organization, available resources (personnel, facilities, equipment, funds), and other relevant information. The internal auditor meets with the senior officer directly responsible for the unit under review and any staff members s/he wishes to include. It is important that the client identify issues or areas of special concern that should be addressed.

Preliminary Survey:
In this phase the auditor gathers relevant information about the unit in order to obtain a general overview of operations. S/He talks with key personnel and reviews reports, files, and other sources of information.

Internal Control Review:

The auditor will review the unit's internal control structure, a process which is usually time-consuming. In doing this, the auditor uses a variety of

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tools and techniques to gather and analyze information about the operation. The review of internal controls helps the auditor determine.

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About Bahria Town: The organization, I have chosen for cheking the Audit program & preocess is Bahria Town (Pvt.) Ltd. Bahria Town is basically a construction and engineering services sector. I have chosen this organization because it is one of the biggest private organizations working in Pakistan. They also doing its Audit for thid purpose hey hire the External auditors. Bahria Town has the distinction of being the daring pioneer and a contributor to the establishment of the real estate sector as a formal industry in Pakistan. It is owned by a single person named Malik Raiz. He is the Chairman of the Bahria Town. Bahria Town is working in three big cities of Pakistan i.e. Rawalpindi, Lahore and Karachi. Vision and Mission Statement of Bahria Town: Mission Bahria Town aspires to be Pakistans greatest builder of all times, with projects offered to an eclectic mix of segments , at choice locations with world class amenities, while ensuring the highest international standards, timely delivery, and lifelong customer satisfaction.

Vision

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To build the future, we need ideas, the free flow of those ideas, and the effective use of human power and technology to shape those ideas into life changing ground realities. Globalization makes all this ever more possible and easier, since the landmarks in luxury lifestyle around the world, that took centuries to be built and perfected, are the priceless jewels of our inspiration.

Audit Program in Bahria Town:

Preparation of the audit program concludes the preliminary review phase. This program outlines the fieldwork necessary to achieve the audit objectives.

Fieldwork:
The fieldwork concentrates on transaction testing and informal communications. It is during this phase that the auditor determines whether the controls identified during the preliminary review are operating properly and in the manner described by the client. The fieldwork stage concludes with a list of significant findings from which the auditor will prepare a draft of the audit report.

Transaction Testing:
After completing the preliminary review, the auditor performs the procedures in the audit program. These procedures usually test the major internal controls and the accuracy and propriety of the transactions. Various techniques including sampling are used during the fieldwork phase.

Advice & Informal Communications:

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As the fieldwork progresses, the auditor discusses any significant findings with the client. Hopefully, the client can offer insights and work with the auditor to determine the best method of resolving the finding. Usually these communications are oral. However, in more complex situations, memos and/or e-mails are written in order to ensure full understanding by the client and the auditor. Our goal: No surprises.

Audit Summary:
Upon completion of the fieldwork, the auditor summarizes the audit findings, conclusions, and recommendations necessary for the audit report discussion draft.

Working Papers:
Working papers are a vital tool of the audit profession. They are the support of the audit opinion. They connect the clients accounting records and financials to the auditors opinion. They are comprehensive and serve many functions.

What is SWOT Analysis?

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SWOT stands for

S is for strength W is for weakness O is for opportunities T is for threats

SWOT Analysis of Bahria Town:

Strengths: Strong name / goodwill International Standards / International Contractors Good management Security to members Strong financial position Large work force Hi Fi services Satisfied customers No electricity problem

Weaknesses:

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High rates (people having low purchasing power) Demotivation in employees Area is getting out of range for people

Opportunities: Joint venture with other groups such as HRL, EMMAR etc To provide improved services to its members To build more shopping malls inside Bahria Town To have the support of Government Increase the opportunities for the people living outside Pakistan that they invest in Pakistan. To build a phase, which are only for the low income people in Pakistan.

Threats: Its major threats in Pakistan is Defence housing Authority Sectors developing in Islamabad Government policies (government will appreciate the business as far as it is providing better facilities to the customers) Trends:

1. Seeing less purchasing power of people try to provide the same services in low rate.

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2. Societies will diversify so that different income people will live in, according to there resources and needs 3. Improved security measures due to the law and order situation in Pakistan.

Diagram

STARS

PROBLEM CHILD

Bahria Town

CASH COWS DOG

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The End