Audit of Imprest Petty Cash

 Petty cash is usually small, but auditors may still check it because it can be misused.

Important controls over petty cash include:

• One person should be responsible for the petty cash fund.
• Petty cash should be kept separately from other cash.
• There should be a maximum limit for each petty cash payment.
• The total petty cash fund should be fixed.
• Only approved types of expenses can be paid using petty cash.
• Every petty cash payment should have a pre-numbered petty cash voucher.
• The voucher should be approved by a responsible officer.
• Actual cash plus unreimbursed petty cash vouchers should equal the petty cash fund amount in the general ledger.

Example:
Petty cash fund = RM500
Actual cash in box = RM120
Petty cash vouchers = RM380
Total = RM500

This means the petty cash fund balances correctly.