Index [______]

Audit Program for Cash

Entity: Balance Sheet Date:

N/A
Performed by Workpaper
Assertions Audit Procedures for Consideration and Date Index

FINANCIAL STATEMENT ASSERTIONS

E/O Existence or occurrence
C Completeness
R/O Rights or obligations
V Valuation or allocation
A/CL Accuracy or classification
CO Cutoff

IDENTIFICATION CODES

The letters in the left column labeled “Assertions”

indicate that the audit procedure provides assurance
about the indicated assertions. If the letter appears in a
bracket (for example, [E/O], [C], etc.), the audit
procedure only secondarily provides assurance about the
assertion. If an asterisk (*) precedes a procedure, it is a
preliminary step or follow-up step.
BASIC PROCEDURES
E/O, C, S 1. Obtain the bank reconciliation for significant bank
R/O, V, accounts for the workpapers and perform the
A/CL, CO following:
S a. Trace the bank balance on the reconciliation to
the balance per the bank statement (or
confirmations received).
S b. Trace the reconciled book balance to the general
ledger, working trial balance, or lead schedule as
applicable.
S c. Test the clerical accuracy of the reconciliation.
S d. Scan the bank reconciliation for significant or
unusual reconciling items. Obtain explanations
and review supporting documentation for any
unusual reconciling items noted.
 N/A
Performed by Workpaper
Assertions Audit Procedures for Consideration and Date Index
E/O, C, S 2. Scan cash receipts and disbursements for significant
[R/O], CO or unusual transactions (including any bank transfers)
near year-end.
S a. Obtain explanations and review supporting
documentation, as necessary, for any such items
noted.
b. Obtain explanations for significant account
variations from the prior period.
c. Assess the reasonableness of cash balances in
light of your understanding of the business and
current operating results.
E/O, [C], S 3. Request confirmation as of the audit date for bank
R/O account(s) selected. Document the items selected for
confirmation.

E/O, [C], S 4. Confirm material cash (or cash equivalents) in savings

R/O, A/CL or other institutions, certificates of deposit, and
compensating balances. Document the items
selected for confirmation.
S a. Tie the confirmation amounts to general ledger
amounts.
S b. Consider the possibility of unrecorded interest or
substitution of certificate numbers.

Concluding Audit Steps

* S 5. Consider the need to apply one or more additional
procedures. The decision to apply additional
procedures should be based on (a) your risk
assessment documented (b) a consideration of
whether information obtained or misstatements
detected by performing audit procedures or from
other sources during the audit alter your judgment
about the assessed risk of material misstatement
(whether caused by error or fraud), and (c) an
evaluation of whether the procedures performed
have provided sufficient assurance. If risks or other
conditions are identified that require an additional
audit response, ensure that those risks or conditions
and your response are documented.
* S 6. Consider whether the results of audit procedures
indicate internal control related matters that are
required to be communicated to management and
others. If so, add to the memo of points for the
communication of internal control related matters.

Conclusion

Page 2 of 6
 N/A
Performed by Workpaper
Assertions Audit Procedures for Consideration and Date Index
* S 7. We have performed procedures and obtained audit
evidence sufficient to provide reasonable assurance
about cash (to support our opinion on the financial
statements taken as a whole). The procedures
performed, relevant evidence obtained, and our
conclusions are adequately documented. (If you are
unable to conclude, prepare a memo documenting
your reason and the implications for the
engagement, including the audit report.

[ ]

Page 3 of 6
 N/A
Performed by Workpaper
Assertions Audit Procedures for Consideration and Date Index
EXTENDED PROCEDURES (PROCEDURES FOR
ADDITIONAL ASSURANCE)

Additional Bank Reconciliation Procedures

S 1. Perform the following procedures as deemed
E/O, C, necessary for selected bank accounts:
R/O, A/CL,
CO
S a. Request a subsequent-period bank statement
from the bank.
S b. Compare the beginning bank balance on the
subsequent bank statement to the year-end bank
reconciliation. Investigate any differences.
S c. Trace deposits in transit per the bank
reconciliation to deposits in the subsequent bank
statement, noting the reasonableness of the time
period between book and bank recording.
S d. Inspect selected canceled checks that cleared on
the subsequent bank statement. Trace checks
dated before the balance-sheet date to the list of
outstanding checks.
S e. Inspect the dates on which checks cleared the
bank. Investigate any large or unusual
outstanding checks that cleared on the
subsequent statement but took a long time to
clear, and/or outstanding checks that did not
clear. Also inquire of the client whether any
checks drawn before the balance-sheet date
were released after that date or are being held.
Consider whether such checks should be
classified as accounts payable. Consider the
classification of bank overdrafts.

Bank Statements Not Directly Received from the Bank

2. Prove the bank statement if it was not received
[E/O], [C], directly from the bank:
[R/O]
a. Inspect the bank statement for erasures or
alterations and determine the clerical accuracy of
the statement totals.
b. Foot the paid checks and deposit slips supporting
the bank statement and compare the totals to
the corresponding totals in the bank statement.

Interbank Transfers

Page 4 of 6
 N/A
Performed by Workpaper
Assertions Audit Procedures for Consideration and Date Index
3. Review a schedule of interbank transfers for [ ]
[E/O], [C], days before and after the balance-sheet date and
CO determine the following:
a. Transfers between each ledger were recorded in
the same period (that is, all transfers made
before the end of the period were recorded in
each ledger before the period end, and vice versa
for transfers made after the end of the period).
b. Transfers not clearing the bank in the same
accounting period in which they were initiated
are properly reflected as reconciling items on
bank reconciliations.

Review for Restrictions on Cash

S 4. Review confirmations received from financial
R/O, A/CL institutions; loan, debt, and other significant
agreements; and corporate minutes; and make
inquiries of management. (Coordinate this work with
the debt and contingency procedures in other
program areas.) Determine whether:
S a. There are related guarantees, endorsements,
and/or letters of credit, including guarantee
arrangements for related parties.
S b. There are amounts designated for special
purposes.
S c. Amounts are restricted in any manner, including
withdrawal restrictions, minimum balance
requirements, compensating balances, etc.
S d. Amounts are appropriately classified as cash,
cash equivalents, or other short-term
investments.

Proof of Cash
5. Perform a proof of cash using an expanded version of
E/O, C, the bank reconciliation that reconciles the following
A/CL (generally as a response to identified fraud risks):
a. Beginning-of-period balances per the bank
statement and the books.
b. Current-period cash receipts per the bank
statement to the corresponding items in the
general ledger.
c. Current-period cash disbursements per the bank
statement to the corresponding items in the
general ledger.
d. End-of-period balances per the bank statement
and the books.

Page 5 of 6
 N/A
Performed by Workpaper
Assertions Audit Procedures for Consideration and Date Index
Cash Count
6. Count cash on hand in the presence of a client
E/O, R/O representative and obtain a signed receipt that the
cash was returned intact.

Examination of Certificates of Deposit and Other

Securities on Hand
7. Examine significant certificates of deposit and other
E/O, R/O negotiable securities on hand in the presence of a
client representative and obtain a signed receipt that
the securities were returned intact.
a. Compare amounts to confirmations, noting
whether any have been pledged to secure
indebtedness.

Cash Disbursements
8. Perform the following procedures (generally as a
E/O, A/CL response to identified fraud risks):
a. Review selected checks for unusual payees,
endorsements, addresses, or amounts.
b. Review cash disbursements for an extended
period prior to the balance-sheet date.

Confirmation of Accounts Closed during the Period

9. Send standard bank confirmations for accounts
C closed during the audit period. Document the items
selected for confirmation.

Other Procedures for Additional Assurance

10. Other additional procedures (describe):
* [ ]

Page 6 of 6