While testing the year end balance in the general cash account, the auditor must accumulate sufficient, appropriate, evidence to evaluate whether cash as stated on the balance sheet, is fairly stated and properly disclosed.
Identify broad audit procedures over cash, then give specific examples of detailed audit procedures.
Include: cutoff bank statement, bank reconciliations, confirmation and proof of cash© BrainMass Inc. brainmass.com June 4, 2020, 1:25 am ad1c9bdddf
Broad Audit Procedures Over Cash
The auditor for obtaining the sufficient appropriate audit evidence must test some of the controls over cash that may include:
Obtaining a list of amounts paid,then on a sample basis which is based on the assessment of risks,
-check the payments are authorized
-check the amount is accurately recorded in the ledger
-trace the amount of payment is bank statement
-check whether the payment record contains appropriate identification for which service or product the payment made.
-check the amount has been recorded in the relevant period
-check the identification of the party to which payment and made and it has been adjusted in the appropriate supplier/creditor ...
Identifies broad audit procedures over cash, as well as examples of detailed audit procedures.