CLIENT:

YEAR ENDED:

Audit Program – Cash and cash equivalents

Financial Statement A
Audit Objectives: E/O C

All cash on the statement of financial position is held by the entity or on deposit by others
√
(e.g., a bank) for the entity.

All cash owned by the entity at the statement of financial position date is included on
√
statement of financial position.

Cash is stated at its realizable value.

The entity owns, or has legal right to, all the cash on the statement of financial position at
the statement of financial position data. All cash is free of restrictions on use, liens, or
other security interests or, if not, such restrictions, liens, or other security interests are
identified.

Cash is properly classified, described, and disclosed in the financial statements, including
notes, in conformity with prescribed accounting principles.

Assertions:
Existence or Occurrence, Completeness, Rights and Obligations, Valuation, Classification and Understandability

Related Assertions Audit Procedures

Obtain list of cash and cash equivalents accounts. Compare the list with prior year’s balances
and investigate any unexpected changes (e.g., credit balances, unusual large balances, new
E, C 1.
accounts, closed accounts) or the absence of expected changes. And review the nature all bank
accounts as of year-end.

Count cash on hand (petty cash, undeposited receipts, cash sales), and cash opname if
E, C 2.
significant.

Confirm all bank accounts as of year-end including bank accounts with zero balances or
dormant accounts. Prepare Confirmation Request and Monitoring (CRAM) working paper.
E, R&O 3. Consider sending confirmation request for those closed bank accounts during the year. List all
the confirmation requests sent to the banks to monitor who among the banks have already
responded or who have not yet responded.
 E, C, V 4. Obtain bank reconciliations.

a) Trace the bank balance to the confirmation or bank statement.

b) Trace the book balance to the general ledger.
c) Test the clerical accuracy of the reconciliation.
Review the nature and extent of other reconciling items for reasonableness and investigate any
d)
significant or unusual reconciling items.

5. Test appropriate valuation of cash and cash equivalents in foreign currencies.

a) Obtain the period-end foreign exchange rate from an independent source
V b) Re-perform the conversion of the cash balance into the currency using this rate

c) Compare the result to the account balance in the general ledger and note any difference

Review bank confirmations, minutes, loan agreements, and other documents for evidence of
R&O, C&U 6.
restrictions on the use of cash, or liens on, or security interest in cash.

Review the appropriateness of classification of time deposits (including the restricted cash and
7.
cash equivalent) as follows:

Time deposits with original maturities of more than three months at the time of placement or
·
C&U purchase are classified as “Short-term Investments”

Restricted cash and cash equivalent with maturities less than twelve months are recorded as
· part of “Other Current Asset”, if more than twelve months are recorded as part of “Other Non
Current Asset”

Test the reasonableness of interest income and interest receivable in relation to average cash
E, C, V 8.
balances (including certificates of deposit and other cash equivalents).
 A
WP reference
Sign Date
Prepared
Reviewed

ents

Financial Statement Assertions

R&O V C&U

standability

W/P
Sign-Off
Ref.

with prior year’s balances

sual large balances, new
d review the nature all bank

and cash opname if

ith zero balances or

RAM) working paper.
nts during the year. List all
the banks have already
bleness and investigate any

urrencies.
ource
ng this rate

d note any difference

ocuments for evidence of

sh.

ing the restricted cash and

the time of placement or

e months are recorded as

ded as part of “Other Non

n relation to average cash

s).
KAP Morhan & Rekan Prepared by: Date: Index:
Registered Public Accountant
A.1
Client : Reviewed by: Date: Period:

December 31, 2013

Subject : Cash on hand - Detail

Balance Per TB Difference WP

NO Descriptions TM
December 31, 2012 Per Cash Opname Reconciliation Reff

Cash
Petty cash - - -

- - - -

control

Notes/Findings:
xxx

Conclusion:
Based on our audit procedures performed, we conclude that the xxx.

TM
^ Footing OK
KAP Morhan & Rekan Prepared by: Date: Index:
Registered Public Accountant
A.2
Client : Reviewed by: Date: Period:
December 31, 2013
Subject : Bank Reconciliation

WP Unaudited Original amount per Bank Curr Per

NO Descriptions TM TM Different Reconciliation Audited
Reff December 31, 2013 December 31, 2013 Convert to IDR

1
- -
- -
- - - -

control #REF! #REF!

Notes:
BI Rate 2012: 9,480

TM
^ Footing OK
KAP Morhan & Rekan Prepared by : Date: Index:
Registered Public Accountant
A.3
Client : Reviewed by: Date: Period:
December 31, 2013
Subject : Bank Confirmation Control

Confirmation Control
WP Amount Conf. sent Amount Replay (B) Date Diff. Reconciliation Subsequent Audited
No. No. Letter Name
Reff (A) I II USD IDR Reply ((A) - (B))

Total 0 0 0 0 -
^ ^ ^ ^ ^

Total balance per book

Total confirmation send - #DIV/0! from balance per bank statement
Total confirmation replied - #DIV/0! from confirmation send

Diff -

Notes:
BI Rate 2012: 9,480

Conclusion:
Based on our audit procedures performed, we conclude that xxx

TM
^ Footing OK