Core Text

Module 2- Session 1
Conduct Inventory of Cash, Cash Items and
Accountable Forms
Introduction
The previous module discussed planning the cash examination. The audit plan and
audit program are the most basic outputs of that phase of cash examination. If these
are ready, you are set to conduct the cash count and do an inventory of cash items
and accountable forms.

Module 1

Module 2

Module 3

Module Overview

Module 4

There are procedures and techniques peculiar to the examination of the cash and
accounts of the collecting and/or the disbursing officer, as well as detailed steps in
the examination of the cash and accounts of these officers. Part of these procedures
and techniques will cover also the inventory of accountable forms. All these you will
read through this core text.
It is always possible that the accounts of these officers may not be correct for some
reasons or another. There will also be instances when the result of the examination
of their accounts will reveal a shortage/overage. In this module, the specific
guidelines in this particular situation will also be explained as you read this core text.

Learning objectives
By the end of this session, you will be able to
Arrange in sequential order the common practices and techniques necessary in
conducting the examination of the cash and cash account and inventory of
accountable forms; and
Identify correct/incorrect techniques and procedures undertaken by an auditor
in conducting the examination of the cash and cash account and recommend
procedures to uncover the accountable officers shortage (using the caselette
provided).

Core text
The following pages contain Chapters III and IV of the Revised Cash Examination
Manual. You are required to read all of the pages for your understanding of the
common procedures and techniques in conducting cash examination as well as other
relevant information regarding this module.

Summary
The session discussed the procedures and techniques you can follow in the conduct of
the cash and accounts of the collecting and/or disbursing officer. To further guide you
in your work, especially in cases where an overage and/or shortage occurs, the
module discussed specific guidelines for such situations.

References:
1. Chapters III and IV of the Revised Cash Examination Manual
2. Handbook on Cash Examination