Page 58 - CA Final PARAM Digital Book.

1) If the audit procedures were designed for a certain volume of turnover and sub-sequently the
volume have substantially increased. Also, when there have been significant changes in the
accounting organisation, procedures, and personnel sub-sequent to the audit procedures.

2) Where during the course of an audit, it has been discovered that internal control procedures were
not as effective as assumed at the time the audit programme was framed.

3) Where there has been an extraordinary increase in the amount of book debts or that in the value of
stocks as compared to that in the previous year.

4) When a suspicion has aroused during the course of audit or information has been received that
assets of the company have been misappropriated.

It may be noted that the audit plan and related programme should be reconsidered as the audit progresses.
Such re-consideration is based on the auditor’s review of internal control, his preliminary evaluation thereof
and the result of his compliance and substantive procedures.

Audit Programme for Multiplex, Sale of Old Course – (N09E, M12R, N15R, M18R, N19E, M21M,
QNO tickets SM21, M22M)
153.000
TITANIUM CNO— Unique New Course – (SM23)
You have been appointed as the auditor of a Multiplex Cinema House Draw an audit programme in
respect of its Revenue and Expenditure.
OR
XLoud, a movie theatre complex, is the foremost theatre located in Delhi Along with the sale of tickets
over the counter and online booking, the major proportion of income is from the cafe shops, pubs etc
located in the complex Its ‘other income’ includes advertisements exhibited within/outside the premises
such as hoarding, banners, slides, short films etc The facility for parking of vehicles is also provided in the
basement of the premises.
XLoud appointed your firm as the auditor of the entity Being the head of the audit team, you are
therefore required to draw an audit programme initially in respect of its revenue and expenditure
considering the above-mentioned facts along with other relevant points related to a complex.

Answer ➢ Audit Programme of Multiplex

Just Think About Going For A Movie - Imagine the Events that take place .

➢ General points
• Peruse the Memorandum of Association and General MOA
Articles of Association of the entity. Points
• Ensure the object clause permits the entity to AOA
engage in this type of business.
➢ Incomes Income
In the case of income from sale of tickets:
• Verify the system of collection from the parking areas in
respect of the vehicles parked by the customers. Parking
• Verify the system of control exercised relating to the
income receivable from advertisements exhibited within Advertisment
`
the premises and inside the hall such as hoarding, Sale of Tickets
banners, slides, short films etc. -Online/Offline
• Verify the control system as to how it is ensured that the
collections on sale of tickets of various shows are properly Café/Pubs
accounted.
• Verify the system of relating to online booking of various
shows and the system of realization of money. Check Internal Control
• Check that there is overall system of reconciliation of System & Its Effectiveness
with respect to Incomes
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