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Real & Other Properties Acquired (Ropa) : Audit Objectives

1. Maintain accurate records and conduct periodic physical inventories of acquired assets to verify their existence and value. Assets should be reappraised every two years. 2. Aging of acquired assets is required to identify which have not been consolidated and the reasons for non-consolidation. Reconcile subsidiary ledgers to balances and examine loan documents to verify ownership and valuation of consolidated assets. 3. Evaluate dispositions of assets and ensure expenses, taxes, and reserves related to acquired assets are properly accounted for according to regulations.

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412 views

Real & Other Properties Acquired (Ropa) : Audit Objectives

1. Maintain accurate records and conduct periodic physical inventories of acquired assets to verify their existence and value. Assets should be reappraised every two years. 2. Aging of acquired assets is required to identify which have not been consolidated and the reasons for non-consolidation. Reconcile subsidiary ledgers to balances and examine loan documents to verify ownership and valuation of consolidated assets. 3. Evaluate dispositions of assets and ensure expenses, taxes, and reserves related to acquired assets are properly accounted for according to regulations.

Uploaded by

IvoryBrigino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1. Conduct physical inventory on acquired assets at leas


Likewise market value should be change every two yea

2. Maintain actual pictures of properties to prove its existe

3. Aging of acquired assets is required to detect which am


yet consolidated. Reasons of non-consolidation should
1) REAL & OTHER PROPERTIES 4. Run up subsidiary ledger balances and reconcile to
ACQUIRED (ROPA) balance.
This item includes the book values of – 5. Obtain/prepare a schedule of these assets using the pr
1. Real estate acquired through
foreclosure proceedings; 6. Examine loan and acquisition papers, title/documents.
to assets with expired redemption periods are consolid
2. Shares of stocks, bonds or chattels
bank. Inquire what steps are being taken to dispose
acquired in settlement of loans or
than five years.
debts, previously contracted; and
7. Ascertain whether assets acquired are booked at loa
3. Sales contract receivable arising from
interest and litigation expenses or at appraised value
the sale of assets acquired in
case appraisal value is lower than the total claim, de
settlement of loans where the
being taken to recover the deficiency.
corresponding title to the property is
still with the bank. 8. Review lease contracts of assets acquired being
accounting of rentals therefrom.
Audit Objectives: 9. Determine whether income other than rentals derived
1. To ascertain existence and ownership of properly accounted for.
these assets;
10. Test-check expenses relating to these assets for
2. Ascertain that these assets are carried at Ascertain that taxes are fully paid.
fair valuation and adequately insured;
11. Review material dispositions of asset during the pe
3. To determine compliance with provisions Determine authority for the disposition and reasonablen
of law, BSP rules and regulations; and
12. Test-check physical existence of these assets and det
4. To evaluate effectiveness of internal control is exercised over them.
control.
13. Classify these assets into “substandard” or “loss” as
ascertain that the necessary valuation reserves are pro

14. Evaluate system of internal control.

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