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Audit Program for Cash

In: Business and Management

Submitted By silviq26
Words 282
Pages 2
Substantive Audit Program- Cash Balances
Assertions:
1. The amount of cash is not materially more than the amount shown on the balance sheet. (checked with procedure 3, 5 and 7) 2. All cash has been recorded. (Checked with procedures 3, 5 and 7) 3. Cash is correctly shown as a current asset. (Checked with procedure 12) 4. Cash is not restricted to noncurrent use. (Checked with procedure 12) 5. All deposits and disbursements of cash reflect transactions before the end of the year. (Checked with procedure 2, 3, 4, 5, 6, 7)

Procedures

1. All reconciliations are for valid bank accounts, obtain confirmation from a third party (Existence)
2. AOW vouched deposit in transit to the cutoff bank statement, noted it cleared the bank on january 4 2010, appears to be a valid reconciling items. (Existence)
3. AOW traced selected January deposits from the cutoff bank statement to the cash receipts journal. No other reconciling items. (Completeness)
4. AOW vouched outstanding check to cash disbursement journal and cutoff bank statements, noting the check cleared after 12/31. (Existence)
5. AOW made a selection from the cash disbursements journal and trace to the cutoff bank statement to test outstanding checks for completeness. No exceptions noted. (Completeness)
6) All outstanding checks from the cutoff statement written before year end are included on the reconciliation. (Existence)
7) All deposits from the cutoff statement made before year end are included on the reconciliation (Completeness) 8) Amounts of reconciling items are properly recorded (Valuation) 9) Bank reconciliation is properly prepared (Valuation) 10) Footing is accurate (Valuation) 11) Client is the owner of the bank statement (Rights and Obligations) 12) Cash is properly classified (Presentation and Disclosure)

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