Audit of Cash Balances

1. Introduction to Cash Audit
2. Types of Cash Accounts
• General Cash Account
• Imprest Account
• Branch Bank Account
• Imprest Petty Cash Fund
• Cash Equivalents
3. Why Cash Is Important in Audit
4. Auditor’s Objectives When Auditing Cash
• Existence
• Completeness
• Rights
• Accuracy
• Presentation and Disclosure
5. Risks Related to Cash
• Inherent Risk
• Risk of Material Misstatement
• Timing Error
• Window Dressing
6. Fraud Risks in Cash
• Skimming
• Lapping
• Fictitious Disbursement
• Kiting
7. Internal Controls Over Cash
• Authorization of Transactions
• Segregation of Duties
• Bank Reconciliation
• Physical Controls
8. Designing Substantive Tests of Cash
9. Common Substantive Tests for Cash
10. Audit of the General Cash Account
11. Important Audit Procedures for General Cash Account
• Bank Confirmation
• Cutoff Bank Statement
• Test of Bank Reconciliation
12. Fraud-Oriented Procedures
• Extended Test of Bank Reconciliation
• Proof of Cash
• Test of Interbank Transfers
13. Audit of Imprest Petty Cash
14. Key Terms