AUDIT OF CASH BALANCE. 23. Society Expects A Lot From Auditors. Cash in the Bank and Transaction Cycles. Cash in the Bank and Transaction Cycles. Failure to bill a customer Billing a customer at a lower price than called for by company policy
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Society Expects A
Lot From Auditors
General Cash Account
Imprest Payroll Account
Branch Bank Account
Imprest Petty Cash Fund
GENERAL CASH ACCOUNT
Receipt of a Bank
Receipt of a Cutoff
Tests of the
Working Paper for a
of Financial Institution
Account Balance Information
FIRGURE 22 - 5
Proof of Cash
Proof of Cash
and their Relationship
to the General
Interbank Transfer working Paper
Petty cash is a unique account because it is often immaterial
in amount,yet it is verified on many audits.
The account is verified primarily because of the potential
for defalcation and the client’s expectation of an audit
review even when the amount is immaterial.
¶ Transactions in most cycles affect the cash account.
¶ Wait to audit the ending cash balance until the
controls and substantive tests of transactions
have been completed for all cycles.
¶ Tests of the cash balance normally include include
tests of the bank reconciliation’s of key cash
accounts, such as the general cash accounts,
imprest payroll account, and imprest
petty cash fund.
Will Be Uncovered by a Carefully
Prepared Independent Bank