Audit of the General Cash Account

 The general cash account has high audit risk because cash is easy to steal or manipulate.

Important controls over the general cash account include:

• Proper segregation of duties between cheque signing and accounts payable.
• Cheques should be signed only by authorised persons.
• Use of pre-numbered cheques.
• Supporting documents must be reviewed before cheques are signed.
• Bank reconciliation should be prepared monthly by an independent person.

The purpose of bank reconciliation is to ensure that the accounting records agree with the actual cash balance in the bank after considering reconciling items.