Audit of Cash Balances(现金余额审计英文版).pptx

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AuditofCashBalancesChapter22 RelationshipsofCashintheBankandTransactionCyclesCashinBankCapitalStock–CommonPaid-inCapitalinExcessofPar–CommonRedemptionofstockRedemptionofstockIssueofstockIssueofstockDividendsPayablePaymentofdividendsCapitalAcquisitionandRepaymentCycle RelationshipsofCashintheBankandTransactionCyclesCashinBankAccountsPayablePaymentAcquisitionandPaymentCycle RelationshipsofCashintheBankandTransactionCyclesCashinBankAccountsReceivableGrossSalesCashsalesCashreceiptsCashDiscountsTakenSalesandCollectionCycle RelationshipsofCashintheBankandTransactionCyclesCashinBankAccruedWages,Salaries,Bonuses,andCommissionsWithheldIncomeTaxesandOtherDeductionsPaymentPaymentAccruedPayrollTaxExpensePaymentPayrollandPersonnelCycle CashintheBankandTransactionCyclesFailuretobillacustomerBillingacustomeratalowerpricethancalledforbycompanypolicyAdefalcationofcashbyinterceptionofcashreceiptsfromcustomersbeforetheyarerecorded,withtheaccountchargedoffasabaddebtMisstatementswhichmaynotbediscoveredasapartoftheauditofthebankreconciliation CashintheBankandTransactionCyclesDuplicatepaymentofavendor’sinvoiceImproperpaymentsofofficers’personalexpendituresPaymentforrawmaterialsthatwerenotreceivedPaymenttoanemployeeformorehoursworkedPaymentofinteresttoarelatedpartyforanamountinexcessofthegoingrate CashintheBankandTransactionCyclesMisstatementswhicharenormallydiscoveredasapartofthetestsofabankreconciliation.Failuretoincludeacheckthathasnotclearedthebank,eventhoughithasbeenrecordedinthecashdisbursementsjournalCashreceivedbytheclientsubsequenttothebalancesheetdatebutrecordedascashreceiptsinthecurrentyear CashintheBankandTransactionCyclesDepositsrecordedascashreceiptsneartheendoftheyear,depositedinthebankinthesamemonth,andincludedinthebankreconciliationasadepositintransitPaymentsonnotespayabledebiteddirectlytothebankbalancebythebankbutnotenteredintheclient’srecords GeneralcashaccountImprestpayrollaccountBranchbankaccountImprestpettycashfundCashequivalentsTypesofCashAccounts RelationshipofGeneralCashtoOtherCashAccountsBranchBankCashEquivalentsImprestPayrollImprestPettyCashFundGeneralCash MethodologyforDesigningTestsofBalances–CashIntheBankIdentifyclientbusinessrisksaffectingcashinbank.Settolerablemisstatementandassessinherentriskforcashinbank.Assesscontrolriskforcashinbank. MethodologyforDesigningTestsofBalances–NotesPayableDesignandperformtestsofcontrolsandsubstantivetestsoftransactionsseveralcycles.Designandperformanalyticalproceduresforcashinbankbalance. MethodologyforDesigningTestsofBalances–NotesPayableDesigntestsofdetailsofcashinbankbalancetosatisfybalance-relatedauditobjectives.AuditproceduresSamplesizeItemstoselectTiming Acct.101–GeneralaccountBalanceperbank,12/31$63,275Adddepositintransit12/3111,250$74,525Lessoutstandingcheck8,000Balanceperbank,adjusted$66,525AuditScheduleforaBankReconciliationScheduleA-2DatePreparedbyCO1/10/03ApprovedbyPZ1/18/03 Balanceperbooks,12/31$66,647Add:Notereceivablecollectedbythebank1,325Interestincome265$68,237Less:Paymentofelectricbill1,500NSFcheck200Servicecharge12Balanceperbooks,adjusted$66,525AuditScheduleforaBankReconciliation Balance-RelatedObjectives:GeneralCashintheBankDetailtie-inCutoffPresentationanddisclosureplusthethreemostimportantobjectives:ExistenceAccuracyCompleteness TypesofAuditTestsUsedforGeneralCashinBankCashinBankEndingbalanceTOC-T+TOC-B+STOT+AP+TDP=SufficientcompetentevidenceperGAASAuditedbyTOC-T,STOT,andAPBeginningbalanceCashreceiptsCashdisbursementsAuditedbyTOC-T,STOT,andAPAuditedbyTOC-B,AP,andTDP ExtendedTestsoftheBankReconciliationWhentheauditorbelievesthattheyear-endbankreconciliationmaybeintentionallymisstated,itisappropriatetoperformextendedtestsoftheyear-endbankreconciliation.Inadditiontothesetests,theauditormustalsocarryoutproceduressubsequenttotheendoftheyearwiththeuseofthebankcutoffstatement Allrecordedcashreceiptsweredeposited.Alldepositsinthebankwererecordedintheaccountingrecords.Allrecordedcashdisbursementswerepaidbythebank.Allamountsthatwerepaidbythebankwererecorded.ProofofCash –thebalanceonthebankstatementwiththegeneralledgerbalanceatthebeginningoftheproof-of-cashperiod–cashreceiptsdepositedperthebankwiththecashreceiptsjournalforagivenperiodIncludesareconciliationof:ProofofCash –cancelledchecksclearingthebankwiththecashdisbursementjournalforagivenperiod–thebalanceonthebankstatementwiththegeneralledgerbalanceattheendoftheproof-of-cashperiodIncludesareconciliationof:ProofofCash Theaccuracyoftheinformationontheinterbanktransferscheduleshouldbeverified.Theinterbanktransfersmustberecordedinboththereceivinganddisbursingbanks.Thedateoftherecordingofthedisbursementsandreceiptsforeachtransfermustbeinthesamefiscalyear.TestsofInterbankTransfers Disbursementsontheinterbanktransferscheduleshouldbecorrectlyincludedinorexcludedfromyear-endbankreconciliationasoutstandingchecks.TestsofInterbankTransfersReceiptsontheinterbanktransferscheduleshouldbecorrectlyincludedinorexcludedfromyear-endbankreconciliationsasdepositsintransit. Typically,theonlyreconcilingitemsareoutstandingchecks.AuditoftheImprestPayrollBankAccountPaycheckforDept.ofTreasurerJohnDoePaycheckforDateDept.ofTreasurerJaneDoeDate Pettycashisauniqueaccountbecauseitisoftenimmaterialinamount,yetitisverifiedonmanyaudits.Theaccountisverifiedprimarilybecauseofthepotentialfordefalcationandtheclient’sexpectationofanauditreviewevenwhentheamountisimmaterial.PettyCash AudittestsforpettycashInternalcontrolsoverpettycashAuditofImprestPettyCash EndofChapter22