Common Substantive Tests for Cash

 

Substantive Test	Main Audit Objective
Obtain analysis of cash balances and reconcile to general ledger	Accuracy
Send bank confirmation to banks	Existence and rights
Obtain bank reconciliation	Existence and accuracy
Obtain bank cutoff statement	Cut-off and completeness
Count cash on hand	Existence
Verify cash transaction cut-off	Existence, rights, and completeness
Analyse bank transfers around year-end	Detect kiting
Investigate payments to related parties	Fraud risk and disclosure
Evaluate presentation and disclosure	Proper reporting