Audit Program for Cash & Cash Equivalents

Legal Client name: Emperador Inc.

Balance Sheet Date: December 31, 2017 to April 2018
Prepared by: Jhonrey Y. Arguelles
Date: February 21, 2019
Reviewed by: Marie May S. Magtibay
Date: February 28, 2019

Audit Objectives Assertions Risk Assessment

Inherent Control Detection Substantive
Risk Risk Risk Testing
1. To assess
cash balance
presented on
Existence, Less
hand and in Low Low High
Rights Extensive
bank
represents
valid claims
2. To ensure that
all cash
related
transactions Less
Completeness Low Low High
had been Extensive
recorded in the
books on
timely basis.
3. To ensure that
cash balance
Less
is presented at Valuation Low Low High
Extensive
the correct
amount.
4. To ensure that
cash balance are
appropriately
presented and
disclosed as per
component in the Presentation & Less
Low Low High
financial Disclosure Extensive
statements in
accordance with
applicable
financial reporting
framework
CASH ON HAND
Audit Assertions Evidence
Substantive Procedures
objective
To assess
whether cash
receipts and Most recent cash
cash Perform confirmation using near year- Completeness receipts and cash
disbursements end cash receipts and cash Cut -off disbursements prior
are recorder disbursements on sample basis. year end.
on their
proper
periods.
To assess Ask for related data from the client such
whether cash as employees’ IOUs and customer Sample of employees’
on hand is receivables. Valuation and IOUs and sample of
properly allocation customer receivables
valued as of Perform recalculation of ending
year-end. balances of data/accounts affecting the Cash flow statement
flow of cash.
To assess
whether cash
on hand Test of details by confirming bank Existence or Bank deposits
balance deposits and loan amounts. occurrence Loan contract
presented
does occur as
of year-end.

CASH IN BANK
Audit Assertions Evidence
Substantive Procedures
objective
To assess
whether cash in Confirm the validity of presented cash in
bank balance
presented is
bank balance from the bank transacted Rights Bank confirmation.
owned by the by the client.
client.

To identify if Valuation and Cash flow statement

cash in bank Confirm cash in bank amount with allocation Sample of employees’
amount relative amount of documents kept by Existence IOUs balances, Sample
presented is the client of customer receivables
fictitious. balances, Sample of

To identify if any Confirm if ending balance of adjusted cash Existence or Deposit Slip, Withdrawal
mistakes in in bank shown in general ledger tallies with occurence Slip,
computing cash balance sheet.
in bank account
SHORT TERM-PLACEMENTS
Audit Assertions Evidence
Substantive Procedures
objective
To identify if the
client has right Inquire to management and ask them to Rights Documents such as 3-
on claiming present any documents that substantiate month treasury bill & 3-
short term- their rights on short-term financial assets month deposit slip.
placements presented.
presented.
To identify if
short term-
Confirm if ending balance amount of short
placements Completeness General ledger
term-placements in balance sheet tallies
presented by
with amount shown in general ledger.
the client is
fictitious.
To identify if
appropriate
policies in Review policies through reading notes to Presentation Notes to financial
measuring short financial statements. and disclosure. statements.
term-
placements is
adequately
disclosed.