Audit of Cash Balances(現(xiàn)金余額審計(jì)英文版)

1、Audit of Cash BalancesChapter 22Relationships of Cash in the Bank and Transaction CyclesCash in BankCapital Stock CommonPaid-in Capital in Excessof Par CommonRedemptionof stockRedemptionof stockIssue ofstockIssue ofstockDividends PayablePayment ofdividendsCapital Acquisition and Repayment CycleRelat

2、ionships of Cash in the Bank and Transaction CyclesCash in BankAccounts PayablePaymentAcquisition and Payment CycleRelationships of Cash in the Bank and Transaction CyclesCash in BankAccounts ReceivableGross SalesCashsalesCashreceiptsCash Discounts TakenSales and Collection CycleRelationships of Cas

3、h in the Bank and Transaction CyclesCash in BankAccrued Wages, Salaries,Bonuses, and CommissionsWithheld Income Taxesand Other DeductionsPaymentPaymentAccrued PayrollTax ExpensePaymentPayroll and Personnel CycleCash in the Bank and Transaction Cycles Failure to bill a customer Billing a customer at

4、a lower price than called for by company policy A defalcation of cash by interception of cash receipts from customers before they are recorded, with the account charged off as a bad debtMisstatements which may not be discoveredas a part of the audit of the bank reconciliationCash in the Bank and Tra

5、nsaction Cycles Duplicate payment of a vendors invoice Improper payments of officers personal expenditures Payment for raw materials that were not received Payment to an employee for more hours worked Payment of interest to a related party for an amount in excess of the going rateCash in the Bank an

6、d Transaction CyclesMisstatements which are normally discoveredas a part of the tests of a bank reconciliation. Failure to include a check that has not cleared the bank, even though it has been recorded in the cash disbursements journal Cash received by the client subsequent to the balance sheet dat

7、e but recorded as cash receipts in the current yearCash in the Bank and Transaction Cycles Deposits recorded as cash receipts near the end of the year, deposited in the bank in the same month, and included in the bank reconciliation as a deposit in transit Payments on notes payable debited directly

8、to the bank balance by the bank but not entered in the clients records General cash account Imprest payroll account Branch bank account Imprest petty cash fund Cash equivalentsTypes of Cash AccountsRelationship of General Cash to Other Cash AccountsBranch BankCashEquivalentsImprest PayrollImprest Pe

9、ttyCash FundGeneralCashMethodology for Designing Tests ofBalances Cash In the BankIdentify client business risksaffecting cash in bank.Set tolerable misstatement andassess inherent risk for cash in bank.Assess control risk for cash in bank.Methodology for Designing Tests ofBalances Notes PayableDesi

10、gn and perform tests ofcontrols and substantive testsof transactions several cycles.Design and perform analyticalprocedures for cash in bankbalance.Methodology for Designing Tests ofBalances Notes PayableDesign tests of detailsof cash in bank balanceto satisfy balance-relatedaudit objectives.Audit p

11、roceduresSample sizeItems to selectTimingAcct. 101 General accountBalance per bank, 12/31$63,275Add deposit in transit 12/31 11,250$74,525Less outstanding check 8,000Balance per bank, adjusted$66,525Audit Schedule for aBank ReconciliationScheduleA-2 DatePrepared byCO1/10/03Approved byPZ1/18/03Balanc

12、e per books, 12/31$66,647Add:Note receivablecollected by the bank 1,325Interest income 265$68,237Less: Payment of electric bill 1,500NSF check 200Service charge 12Balance per books, adjusted $ 66,525Audit Schedule for aBank ReconciliationBalance-Related Objectives: General Cash in the BankDetailtie-

13、inCutoffPresentationand disclosureplus the three most important objectives:ExistenceAccuracyCompletenessTypes of Audit Tests Usedfor General Cash in BankCash in BankEnding balanceTOC-T + TOC-B + STOT + AP + TDP= Sufficient competent evidence per GAASAudited byTOC-T, STOT, and APBeginning balanceCash

14、 receiptsCash disbursementsAudited byTOC-T, STOT, and APAudited byTOC-B, AP, and TDPExtended Tests of theBank ReconciliationWhen the auditor believes that the year-end bankreconciliation may be intentionally misstated,it is appropriate to perform extended testsof the year-end bank reconciliation.In

15、addition to these tests, the auditor must alsocarry out procedures subsequent to the end ofthe year with the use of the bank cutoff statement 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

16、bank. All amounts that were paid by the bank were recorded.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 periodIncludes a reconciliation of:P

17、roof 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 periodIncludes a reconciliation of:Proof of CashThe accuracy of the information on the interbanktran

18、sfer schedule should be verified.The interbank transfers must be recorded inboth the receiving and disbursing banks.The date of the recording of the disbursementsand receipts for each transfer must be inthe same fiscal year.Tests of Interbank TransfersDisbursements on the interbank transfer scheduleshould be correctly included in or excluded fromyear-end bank reconciliation as outstanding checks.Tests of Interbank TransfersReceipts on the interbank transfer schedule shouldbe correctly included in o