SAI –LAO DETAILED AUDIT PLAN (Lao Brewery Co., Ltd) Presenter by: 1. Mr. Soysangkhom KEOLA Deputy Head of Division Team Leader 2. Mr. Vilayvanh BOUTTA Deputy Head of Division Team Member 3. Mr. Bountha PHETDALA Technical Team Member This template can be used as a starter file for presenting training materials in a group setting. Sections Right-click on a slide to add sections. Sections can help to organize your slides or facilitate collaboration between multiple authors. Notes Use the Notes section for delivery notes or to provide additional details for the audience. View these notes in Presentation View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production) Coordinated colors Pay particular attention to the graphs, charts, and text boxes. Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale. Graphics, tables, and graphs Keep it simple: If possible, use consistent, non-distracting styles and colors. Label all graphs and tables.

AUDIT OBJECTIVES To evaluate the income, expenditure, assets and liabilities of the Lao Brewery Co., Ltd are properly expressed in accordance with Accounting law, Budget law, Tax Law and regulation. To evaluate whether the financial statement are true and fair view and to express audit opinion on the financial statement of the Lao Brewery Co., Ltd.

OVERVIEW OF SAI AND SAI MANDATE/FUNCTION The State Audit Organization  The President of the State Audit Organization;   The vision of Our office is; Accountability and Transparency; Auditing is a process of gathering information and audit evidence; The audit is composed of two sectors: the State Audit and the Independent Audit.  

AUDIT TEAM Name and surname: 1. Mr. Soysangkhom KEOLA,   AUDIT TEAM Name and surname: 1. Mr. Soysangkhom KEOLA, Deputy Head of Division, Team Leader 2. Mr. Vilayvanh BOUTTA, Deputy Head of Division, Team Member 3. Mr. Bountha PHETDALA, Technical, Team Member   Time schedule: Time estimate about 3 months. (From Planning Stage to Reporting Stage)

OVERVIEW OF AUDITEE Lao Brewery Co., Ltd. was founded in 1973 as a joint-venture between foreign investors and Lao's businessmen originally under the registered name of Lao Beer and Ice Factory. At that time, the company had an annual production capacity of 3 million liters of beer, 1.5 million liters of carbonated drinks and a daily production capacity of 120 tons of ice. After National Liberation in December 1975, the Lao Government took over the foreigners’ shares and followed by the voluntarily handing over of shares from the Lao businessmen to the State.   In 1993, Loxley Public Co., Ltd and Italian-Thai Public Co., Ltd invested in Lao Brewery Co., Ltd, which enabled the increase on both its production capacity and marketing potential. In 2002, there was a change in the foreign joint-venture partners as the new partners involved were the Lao Government (50%), Carlsberg Asia Co. Ltd. (25%) and the TCC International Co. Ltd. (25%). In 2005, there was another change in ownership of the Lao government holding a 50% stake and Carlsberg Breweries also holding a 50% share.  

OVERVIEW OF AUDITEE Main Office at Km 12 Thadeua Road, Hatsayfong District, Vientiane LAO PDR. P.O.Box 1016, E-mail: info@beerlao.la The Chief Financial Officer is supported by a Managing director. The Director of Quality Control is a one-person operation. The Director of Internal Audit has one full-time and one part-time staff member to carry out audits. Objectives The purpose of the Authority is to move into the future with our consumers by ensuring that our brands are their preferred brands, providing them full bodies taste, total product satisfaction and identification with our products as an integral part of their success in life;   The opening of the AEC will be benefit to all sectors of the country because the ASEAN market is larger with a population of over 600 million people. Beerlao faces challenges in many areas, which will affect the company’s growth and investment in the future because Beerlao, in comparison to other beverage companies in ASEAN, is relatively small so it will be at a competitive disadvantage with respect to capital and logistics systems, and we also face a geographical disadvantage in that we are a landlocked country. Their production capacity is as well small.  

ORGANIZATION   Beer Lao Co., Ltd to operate under the guidance of the board of shareholders, board of directors, the controlled by the minister of industry and commerce, include: Managing Director and 4 Deputy Managing Directors: Deputy Managing director is Assistant to MD-responsible for Procurement and HR- Admin Deputy Managing director is GM – responsible for Brewery and plant Deputy Managing director is Government Relation – responsible for public relation(PR) and corporate social responsibility Deputy Managing director is Commercial – responsible for Sale and Marketing

COMPARATIVE FINANCIAL STATEMENT The financial statements of budgetary units; The statement of Capital position; The statement of budgetary revenues and expenditures or statement of performances; The explanatory notes of the used principles and accounting methods and others; The statement of comprehensive income; The statement of changes in equity; The cash flow statement; The explanation notes of the used principle and accounting methods and other's Expenditures. The Statement of payable and receivable; The report of inventory; Note to the financial statement.    

Compare Income and Expenses of 2013 and 2014 Sr.No Account Head Year Difference 2013 2014 (+/-) % I Total income from normal activities 2,599,563,515,982 3,505,583,290,138 906,019,774,156 135% 1 Business figures 2,538,981,774,918 3,448,452,090,268 909,470,315,350 136% 2 Other income in Business 16,765,855,330 25,371,484,749 8,605,629,419 151% 3 Financial income 43,815,885,734 31,759,715,121 - 12,056,170,613 72% II Total Expenditure 1,748,497,133,628 2,573,699,944,148 816,202,810,520 147% Shopping users 54,654,300,975 39,865,215,540 - 14,789,085,435 73% Service from outside and other users Outgoing staff 489,266,474,315 533,075,671,092 43,809,196,777 109% Employees 158,330,906,404 229,684,229,166 71,353,322,762 145% 4 Taxes, fees and expenses of the same type 855,045,970,830 957,567,626,782 102,521,655,952 112% 5 Outgoing other businesses 3,423,437,583 3,322,275,669 - 101,161,914 97% 6 Depreciation, interconnection costs and benefits Harris 176,738,592,470 202,416,090,511 25,677,498,041 115% 7 Financial Expenses 11,037,451,051 9,334,411,485 - 1,703,039,566 85% 8 Edit expenditure - 598,434,423,903 III The Result before Taxes( I-II ) 851,066,382,354 931,883,345,990 89,816,963,636 100% IV Taxes payable 133,561,197,592 155,725,184,581 22,163,986,989 117% V The Net profit ( III-IV) 717,505,184,762 776,158,161,409 67,652,976,647 108%  

3. Intelligibility, relevance, reliability and comparability; ACCOUNTING POLICY 1. Accruals; 2. Valuation of assets and liabilities according to accounting standards; 3. Intelligibility, relevance, reliability and comparability; 4. Prudence or conservatism; 5. Independent of accounting periods; 6. Going concern in the foreseeable futures; 7. Consistency of various accounting methods; 8. Disclosures of material information having an impact on decision making or users; 9. True and fair view of the financial statement  

ANALYTICAL PROCEDURES Analytical procedures are as follows; Walkthrough test of revenues during the peak period. Matching of invoices and revenue statements/ figures. Test of controls (walkthrough) Matching payments and invoices.   Result of the analytical procedures (e.g. comparison year to year balance): Year 2013 Total income; 3,129,357,419,421 kip Net profit after tax: 717,505,184,759 kip Contribute to government: 1,352,001,634,636 kip Year 2014 Total income; 3,505,583,290,138 kip Net profit after tax: 931,883,345,985kip Contribute to government: 1,587,543,758,375 kip  

IMPORTANT INFORMATION RELEVANT TO AUDIT   Legislation: 1.Constitution of Lao PDR 2.State Audit Law 3.Budget Law 4.Accounting Law 5.Tax Law Audit Tools: 1.MS excel 2.Audit Manuals 3.Other guideline Media: 1.News paper 2.Magazine 3.Website 4.TV 5.Radio 6.Other media

AUDIT RISKS ASSESMENT   Risk based approach (RBA) to auditing - focuses on the entity‘s business risk, i.e. the risk that the entity will fail to achieve its objectives. In this company the risk are as follows: Incomes - Business figures- Sales income of Beers, Water, Softdrink, Energy Soft drinks and Other products Expenses Service from outside and other users Outgoing staff Employees Taxes, fees and expenses of the same type Depreciation, interconnection costs and benefits Harris Edit expenditure

MATERIALITY Calculation of Overall Materiality   Calculation of Overall Materiality   Income as per Account Head is 3,448,452,090,268 x 3 % = 103,453,562,708 Kip Calculation of Performance Materiality Overall Materiality is 103,453,562,708 Kip x 60% = 62,072,137,624 We already defined materiality level as 3%, So we have to audit the following Income and Expenditure:

MATERIALITY Income and Expenditures for 2014 Sr No. Account Head Kip I   Income and Expenditures for 2014   Sr No. Account Head Kip I Total income from normal activities 3,505,583,290,138 1 Business figures 3,448,452,090,268 II Total Expenditure 2,573,699,944,148 Service from outside and other users Outgoing staff 533,075,671,092 2 Employees 229,684,229,166 3 Taxes, fees and expenses of the same type 957,567,626,782 4 Depreciation, interconnection costs and benefits Harris 202,416,090,511 5 Edit expenditure 598,434,423,903

Set the audit procedures in my SAI format   Set the audit procedures in my SAI format References for issuing a decree for an audit team; The decision of audit; Notice on the Decision of audit; Preparation of audit; Conduct of the audit mission; The audit report; Delivery of the Audit report; Disclosure of the audit finding.

Thank you Use a section header for each of the topics, so there is a clear transition to the audience.