CASH AND CASH EQUIVALENTS

Cash on hand
Audit Objectives
 To ascertain whether all collections were receipted and deposited intact with the corporation’s
depository bank
 To determine whether cash collections are completely and properly recorded
 To determine whether cash collections in foreign are properly valued in local currency at the
current exchange rate as of balance sheet date

Audit Program
Audit Procedures WP Remarks
ref
1. Check whether the beginning balance per GL is
the ending balance in the prior year's audited
Balance Sheet
2. Conduct cash Examination on the cash and
accounts of the collecting officer on or before
end of December 31,2015

3. Compare cash counted with collections in the

report of collections and deposits/cash receipt
record on the date of count and reconcile with
the SL to establish undeposited collections

4. See to it that undeposited collections are

deposited not later than the next banking day
and that all checks counted are deposited and
honoured by the bank

5. Trace the undeposited collection to subsequent

bank validated deposit slips and bank statements

6. Trace the account balances from GL to trial

balance to statement of financial condition

7. Verify subsidiary ledger balance of the collecting

officer and compare total SL with the general
Ledger Balance

8. Determine whether the account is presented as

current asset in the statement of financial
condition and adequate disclosures were made.
CASH IN BANK
Audit Objectives
 To ascertain the existence or occurrence of cash in bank account balances
 To determine whether foreign deposits and withdrawals from cash in bank accounts are
completely recorded and properly valued at the current exchange rate of the BSP in accordance
with existing laws, rules and regulations.
 To determine whether the placements in time deposits are completely and properly recorded.
 To determine whether placement and termination of time deposits are authorized

Audit Program
Audit Procedures WP ref Remarks

1. Check whether the beginning balance per GL is

the ending balance in the prior year's audited
Balance Sheet
2. Review entries made in the GL/SL on a test
basis
For Debits to the account:
Trace entries to the Journal of
collections and deposits to report of
Collections to Bank Statements to
deposit slips

For Credits to the account:

trace entries to Report of Checks
Issued to disbursement voucher
3. Obtain Bank Statement and examine in detail
the bank reconciliation
4. Confirm with the bank the balance of each
bank account
5. Obtain the ending balance per books with the
balance confirmed on the bank Confirmation
6. Establish the mathematical accuracy of the
Bank Reconciliation Statements
7. Investigate items which have been long
outstanding
8. For Time Deposits:
 Verify the Original copies of the
Certificates of Time Deposits and
check whether the certificates are in
the name of the agency
 Verify terms of placement, particularly
the rates of interest and maturity
period
 Test samples on the computation of
interest earned from matured and pre
–terminated placements
  Review the agency’s authority to place
cash in time deposits from the charter,
Board Resolutions and agency’s
policies
9. For Cash in Bank- Foreign Currency:
 Obtain from BSP/BTr foreign exchange
rates prevailing at transaction and
balance sheet dates
 Test check correctness of conversion to
local currency at transaction dates of
entries
 Check if foreign gain/loss is properly
recorded and presented in the
Statement of comprehensive Income
10. Verify/check subsidiary ledger balance of each
bank account and compare total balances if
agreed with the General Ledger Balances
11. Determine whether the account is presented
as current asset in the Statement of Financial
Condition and adequate disclosures were
made