` INTERNAL AUDIT AUDIT WORK PROGRAM ABU/SO/JV: PHILSTEEL GROUP OF COMPANIES SECTION OF WORK: INTERCOMPANY PURCHASES Audit Date:

MAY 14, 2012

AUDIT OBJECTIVES: To determine the document transaction flow of intercompany purchases with importation. AUDIT SCOPE: The scope of the audit covers PMPI, SCP and PSCC Intercompany Purchases with importation from January 1, 2011 to May 12, 2012. AUDIT PROCEDURES: TRANSACTION FLOW 1. Obtain and maintain a file copy of the following: Policy and Procedures related to Intercompany Purchases. Documents related to Intercompany Purchases 2. Review the document transaction flow of intercompany purchases. 3. Summarize all significant findings noted. 4. Obtain explanations for the deviations/unusual transactions noted FINANCIAL REPORTING 5. Obtain the following from ABUs Accounting Department: Information about Intercompany Purchases from Accounting Manual and maintain a permanent file. General Ledger/Subsidiary Ledger related to Intercompany Purchases Journal Entries made for Intercompany Purchases 6. Obtain supporting documentation for all the intercompany transactions from January 1, 2011 to May 12, 2012. 7. Summarize all significant findings noted. 8. Obtain explanations for the deviations/unusual transactions noted

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