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Audit For Cash

The document discusses the objectives and procedures for auditing cash, including obtaining an understanding of internal controls over cash, establishing the existence and completeness of recorded cash, determining rights to cash, and ensuring proper presentation and disclosure of cash. Key procedures involve cash counts, bank confirmation, reconciliation, and testing controls over cash receipts and postings.

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Dethzaida Asebuque
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64 views2 pages

Audit For Cash

The document discusses the objectives and procedures for auditing cash, including obtaining an understanding of internal controls over cash, establishing the existence and completeness of recorded cash, determining rights to cash, and ensuring proper presentation and disclosure of cash. Key procedures involve cash counts, bank confirmation, reconciliation, and testing controls over cash receipts and postings.

Uploaded by

Dethzaida Asebuque
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Audit for Cash

In the audit of cash, the auditor’s principal object8ives are to:

 Obtain an understanding of internal control procedures adopted by the company to safeguard


cash;
 Establish the existence of the recorded amount of cash
 Establish the completeness of recorded cash
 Determine that the client has rights to recorded cash and
 Establish that the presentation and disclosure of cash is appropriate

Audit procedures

Identifying the risk of material misstatement from cash and gathering audit evidence to reduce these
risks to acceptable level.

The auditor has to trace the opening balance of cash to an acceptable

Auditing Cash on Hand

 To validate the existence of cash on hand, the auditor shall conduct a cash count. The count
must be conducted in the presence of custodian

Auditing Cash in Bank

Test of control related to cash receipts include:

a. Footing cash receipts records


b. Testing the postings of cash receipts to ledgers
c. Comparing recorded receipts with bank statements
d. Comparing deposit slips with recorded receipts
e. Comparing recorded receipts with the details in the official receipts

The auditor must request confirmation of bank balance for each bank account maintained by the client.
This provides evidence in existence, ownership, accuracy of cash balances.

Confirmation

Reconciliation

Restrictions as to cash

Revenue Cycle brings about delivery of goods or services to customers, who ultimate pay in cash. This
cycle is composed of two phases: the physical phase and the financial phase.

Audit Objectives
The auditor’s principlal objectives in the audit of accounts receivable and sales are to:

 Consider internal control over receivables and sales transactions


 Dete

IAS 18, until IFRS 15 becomes effective January 2017

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