Cash Audit Program

AUDIT PROGRAM FOR CASH 1 Audit Objectives

To determine that: a) Cash balances balances at the the end of the reporti reporting ng period repres represent ent cash and and cash items items on hand, in in transit to, or in depository banks.  b) Cash transactions have been properly recorded. c) Cash balances balances are properly properly descri described bed and classifi classified ed and adequate adequate disclosures disclosures with respect to amounts restricted as to withdrawal are made in the financial statements. Audit Procedures

1) Conduct a cash cash count of of undeposited undeposited collecti collections, ons, petty petty cash, and and other funds. funds. o

btain custodian!s signature to acknowledge return of items counted

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"econcile items counted with general ledger balances

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Trace undeposited collections counted to bank reconciliations

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#ollow up dispositions of items in cash counted:  $ndeposited collections should be traced to bank deposits  Checks accommodated in petty cash should be deposited after the count to

establish their validity  %$s in the petty cash should be confirmed and traced to collections in the

ne&t payroll period  '&pense vouchers should be traced to the succeeding replenishment voucher  o

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Coordinate cash count with count of marketable securities and other negotiable assets of the client btain confirmation of year(end fund balances of cash not counted in branches or other offices

) Confirm Confirm bank balance by direct direct correspond correspondence ence with all all banks in which which the client client has had deposits and loans during the year  *) btain btain bank bank reco reconci ncilia liati tion on o Check arithmetical accuracy of reconciliation o Trace balance per book to the general ledger balance of cash account Trace balance per bank to bank statement and compare with amount confirmed by by o  bank  o 'stablish authenticity of reconciling items by reference to their respective sources like bank debit or credit advices or duly approved +ournal vouchers %nvestigate checks outstanding for a long period of time o %nvestigate any unusual reconciling items o here internal control over cash is weak, consider preparing a proof of cash o reconciliation

the cutoff bank statement 4) btain a list of interbank transfers of funds a few days before and after the reporting date 5ouch supporting documents o 6scertain that the related receipts and disbursements were booked by the client within o the same date or at least within the same month 7) Test reasonableness of cutoff by:  Comparing dates of checks returned with cutoff bank statement to dates of recording in the cash disbursements register   Tracing receipts recorded a few days before the reporting date to bank deposits 8) %nspect savings account passbook and certificates of deposits "econcile with book balances o $pdate interest earned posting on passbooks, if necessary o Compare balances with bank confirmation reply o 9) etermine any restrictions on availability of cash ;) etermine propriety of financial statement presentation and adequacy of disclosures Internal Control uestionnaire !or Cas" #

ate of '&amination: 6s of