Cash uunrestricted as to withdrawal

Initial Rec.
AT FACE VALUE
Subsequent Rec.

CASH ITEMS
1. Cash on Hand
>Undeposited Cash collections
Currencies, bills, coins, customers checks, travelers check, bank draftss
>Working Funds
PCF, Dividend fund, etc

2. Cash in Bank
Demand deposits
Unrestricted funds: Checking and Savings Account

CASH EQUIVALENTS
purchased 3 mos before their maturity

IMPORTANT NOTES (Regarding cash)

1. Foreign Currency deposits
Restricted - NCA
Unrestricted - Cash and converted using SPOT RATE

2. Cash in closed banks / bankcruptcy

Receivables (Written down to Net Realizable Value

3. Customer's check
PDC, NSF, DAIF, DAUD, IOU notes - RECEIVABLES
4. Bank Overdraft - credit balance sa bank account
Cannot be offset - LIABILITY
May be offset - another acc if same bank acc, offset dun sa may positive balance

5. Companies checks
Undelivered, Unreleased, PDC, Unmailed - CASH

6. Compensating Balances
Not legally restricted - CASH
Legally restricted - CA, NCA

7. Cash set aside for long term specific purpose

Non Current assets

AUDIT OF CASH: PETTY CASH FUND

Imprest system
inaalam ano yung:

Accountability vs. Accounted for

"Amount per record" "Amount na nabilang"
1. Imprest balance 1. Bills and cins
2. Collections records (w OR or w/o OR) 2. Unreplenished voucher
3. Accomodation check 3. Replenishment check
4. Currency in envelope 4. Collections (checks)
5. Accomodation cheks
6. Actual currency in the envelope.

AUDIT OF CASH: BANK RECONCILIATION

2 types of Bank Reconciliation
1. Single Dated - wherein only the ending blances are adjusted
2. Proof of Cash - dual dated

Internal Controls for Cash

Inherent risks - easily manipualted and stolen, susceptible to errors
HIGH - high volume of activity, risk of transferrability, cash is significant account when it comes to auditing\\

Control Risks - Elements of Control

1. Assignment of Responsibilities
2. Reliable and competent personnel
3. Document and records
4. Authorization
5. Seperation of Duties
6. Automotated Controls

Audit Assertions for Cash Balance

1. Existence
2. Completeness
3. Valuation
4. Rights and Obligations (Titles)
5. Presentation and disclosure

Substantive procedures
1. Cash count
2. Bank Confirmation - nagpapadala ng confirmation letter sa bank, at inaask sa bank yung balances
Review of Bank recon
3. Examination of Bank transfers - ineexamine kung authorized
4. Analytical procedures
Be careful with people who use Kiting and Lapping
es to auditing\\
CASE 1
Balance of Cash Cash Equivalents Other Acc
Savings acc at East west Bank 2,250,000.00
Checking acc - SecBank 1,800,000.00
Overdraft at Sec (200,000.00) 1,600,000.00
Payroll acc at Binaluyo 1,500,000.00
United Bank Acc $ 56,400.00 52.5 2,961,000.00
Savings deposit acc Bankcruptcy (SJ) 300,000 - Receivables
Unused postage stamps - Prepaid Expenses
Postdated Checks payable (add back) 60,000.00
IOU's from Employees - Receivables
Traveler's check 375,000.00
Money order 50,000.00
PCF at Imprest bal 10,000.00 (4,500.00) 5,500.00
Change and tax funds 470,000.00
DAUD check of customer returned - Receivables
Customers postdated check - Receivables
Time deposit due in 1 mo acquired 2 mos ago 500,000.00
Money market placement (2mos) 700,000.00
Treasury bills 450,000.00
Treasury bills - Current asset
TOTAL CASH AND CASH EQUIVALENTS 9,271,500.00 1,650,000.00 10,921,500.00
aid Expenses
CASE 2

Cash on Hand
Unadjusted Cash on Hand 197,000.00
NSF Check (10,000.00)
Postal Money order correct
Customers postdated Check (21,000.00) Receivables
Adjusted Cash on Hand 166,000.00 1 Correct Balance of Cash on Hand excluding PCF?

Petty Cash Fund

Currency and coins 2,750.00
Employee Advances not part -
Collection for charity not part -
Replenished Petty cash vouchers not part -
Check payable to pcf custodian 2,810.00
Adjusted PCF 5,560.00 2 Correct bal of PFC at of Dec 31, 2021

Asian Development Bank

Unadjusted Bal 1,880,000.00
Checks drawn
Check no. 2781 - Undelivered 84,000.00
Check 2782 - Postdated 102,000.00
Adjusted Bal - ADB 2,066,000.00 3

Land Bank Acc

Positive Bal 2,100,000.00
Lank Bank Overdraft (200,000.00) *** Agreement to Offset the overdraft
New Balance 1,900,000.00 4

Metro Bank Account

Savings Account 500,000.00 Di kasali -Non Cash item to be used in eqpt
Time Deposit 630,000.00
Total Cash & Cash Equivalent 630,000.00 5

6. Total Cash and Cash Equivalents reported as of Dec 31, 2021

Cash on Hand 166,000.00
Petty Cash Fund 5,560.00
Asian Development Bank 2,066,000.00
Land Bank Acc 1,900,000.00
Metro Bank Account 630,000.00
TOTAL CASH AND CASH EQUIVALENTS 4,767,560.00 6
h on Hand excluding PCF?

Dec 31, 2021

CASE 4: Audit of PCF
2-Jan-22
Accountability Accounted For
a. Imprest Petty Cash Bal ₱ 8,000.00 Unreplenised C ₱ 4,266.95
b. Sales Check
No. 101700 Pinoy Eggpress 2,800.75
No. 102345 JKR, customer 2,250.00 5,050.75 Check collectio 5,050.75
Accomodation check - Ms. Min 95.00 Accomodation 95.00
Envelope for contributions (money not insid 1,450.00 Envelope for co -
Paper Bills 2,630.00
Coins 913.25
IOU 1,400.00
14,595.75 14,355.95
239.80
2 CASH SHORTAGE
To get the correct balance of PFC
Cash
Paperbills 2,630.00
Coins 913.25
Less: Money not in the enve (1,450.00) 2,093.25
Jan expenditure
Ballpens 235.50
Messengers transpo 140.00 375.50 31-Dec
Accomodation Check 95.00
PETTY CASH FUND - Dec 31, 2021 ₱ 2,563.75 1
CASE 5-AUDIT OF PCF

ACCOUNTABILITY ACCOUNTED FOR

Bills and Coins
Bills ₱ 100.00 50 ₱ 5,000.00
₱ 50.00 250 ₱ 12,500.00
₱ 20.00 270 ₱ 5,400.00
Coins ₱ 1.00 950 ₱ 950.00
₱ 0.50 650 ₱ 325.00
₱ 0.25 220 ₱ 55.00
₱ 24,230.00
Checks
Replenishment check 5,000.00
Collection from Jhim** 56,000.00 56,000.00 W/O OR
Accomodation Check from Jerry ₱ 6,800.00 6,800.00
Check from Gerald** 75,000.00
Check from Ricmel** 33,000.00
Check payable to Meynerd (di kasama)

Expenses Voucher (take note last replenishment)

Last Replenishment - Dec 21
Date earlier than dec 21, are already replenished
Unreplenished
22-Dec 400.00
23-Dec 25,000.00
27-Dec 6,500.00
29-Dec 700.00
29-Dec 4,500.00 37,100.00

Other items found in the cash box

Two pay eneveopes unclaimed salaries 35,000.00 20,000.00

Additional Information
Custodian is not authorized to issue nor encash checks
OR NO 3052 65,500.00
3053 75,000.00
3054 25,000.00
3055 33,000.00 198,500.00
Imprest Balance 50,000.00
TOTAL PFC 346,300.00 257,130.00
Cash Shortage 89,170.00 2
CASH COLLECTIONS PCF
Bills and Coins Should be balance
Cash collections 24,230.00 50,000.00
OR 3052 (65,500.00) (37,100.00)
OR 2054 (25,000.00) 19,700.00 6,800.00
 Currency in Envelope 35,000 20,000 (15,000.00) Less: Actual Balance
SHORTAGE B. (81,270.00) 6,800.00
89,170.00 11,800.00 5,000
PCF A. 7,900.00 7,900.00

3. Correct Ending Bal of PCF

1. PAJE
Bills and Coins No Entry

Unused Postage Stamps Prepaid Postage Stamps 1,500.00

Postage Expenses 1,500.00

Checks
Payee:Meynard Corporation Cash 110,000.00
A/P 110,000.00

Expenses Vouchers
23-Dec Advances to employees 25,000.00
22-Dec Miscellaneous Expenses 400.00
27-Dec Postage Expenses 6,500.00
29-Dec Transportation Expense 700.00
29-Dec Repairs Expense 4,500.00
Petty Cash Fund 37,100.00

Other items found in cash box

Salaries Cash 35,000.00
Salaries Payable 35,000.00

Liquidation Report
Transportation Exp 16,800.00
PCF 6,800.00
Advances to Employees 23,600.00

Shortage Receivable from Custodian 89,170.00

PCF 7,900.00
Cash 81,270.00

Total Cash
Balance of PCF 11,800.00 di na illess 7,900 sa PCF kasi naka less na sya here
Check collections 164,000.00
Undelivered Check 110,000.00
Salaries 35,000.00
Cash Collections 90,500.00
Less: Shortage
 Cash Collections (81,270.00)
TOTAL CASH BALANCE 330,030.00 4
ould be balance
Imprest balance
unreplenished vouchers
Accomodation check
s: Actual Balance
Accomodation check
Replenishment check