Beruflich Dokumente
Kultur Dokumente
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Learning Objective 1 Show the relationship of cash in the bank to the various transaction cycles.
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Cash in Bank
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Cash in Bank
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Cash in Bank
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Learning Objective 2 Identify the major types of cash accounts maintained by business entities.
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General cash account Imprest payroll account Branch bank account Imprest petty cash fund Cash equivalents
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Learning Objective 3 Design and perform audit tests of the general cash account.
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Design tests of details of cash in bank balance to satisfy balance-related audit objectives.
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Acct. 101 General account Balance per bank, 12/31 Add deposit in transit 12/31 Less outstanding check Balance per bank, adjusted
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Existence
Accuracy
Completeness
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Ending balance
Audited by TOC-B, AP, and TDP
Learning Objective 4 Recognize when to extend audit tests of the general cash account to test further for material fraud.
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Proof of Cash
All recorded cash receipts were deposited. All deposits in the bank were recorded in the accounting records. All recorded cash disbursements were paid by the bank. All amounts that were paid by the bank were recorded.
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Proof of Cash
the balance on the bank statement with the general ledger balance at the beginning of the proof-of-cash period cash receipts deposited per the bank with the cash receipts journal for a given period
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Proof of Cash
cancelled checks clearing the bank with the cash disbursement journal for a given period the balance on the bank statement with the general ledger balance at the end of the proof-of-cash period
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Learning Objective 5 Design and perform audit tests of the imprest payroll bank account.
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Learning Objective 6 Design and perform audit tests of imprest petty cash.
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Petty Cash
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 clients expectation of an audit review even when the amount is immaterial.
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End of Chapter 22
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