Description
ppt on:
"audit program of cash and bank transactions audit"
AUDIT PROGRAM OF CASH AND BANK TRANSACTIONS AUDIT
Definition
AUDIT
AUDIT PROGRAM
It is a set of polices and procedures that dictate how auditing is to be implemented
So what are the objectives of an auditor to check cash and bank balances…………………??????? ??
? ? ?
To check that they are accurately recorded. And if recorded then holds your client name And if it holds it then auditor should check that its actually existing.
What does bank transactions audit involves…………………???????? ???????????????
To check proper bank reconciliations or proof of cash are prepared
All bank statement of each month ended with their reco should be maintained properly in a bank statement file and match with your tally account
Bank transactions are checked and approved
Outstanding items should not prevail for a long period of time
Vouchers are appropriately prepared and properly approved by designated authority
Document logical commercial reasons for new account opened or any closed during the year
If voucher found without entry check and make note if it’s a cancelled cheque
Compare current year balances with last year balances and ensure that any significant variation should be properly and logically reasoned
All deposit made should be cleared within two days
Proper disposition of the amount under proper ledger
Account for the numeric sequence of cancelled cheques. Investigate missing cheques.
Ace Company 6462
Ace Company
Ace Company Ace Company Ace Company 6457 6458 6459
6461
NATIONAL BANK
What will a bank reconciliation help the auditor determine………………..?
Whether all client cash receipts have been deposited
Whether all client cash payments have been paid by the bank
Whether all bank payments have been recorded in client cash payments records
What will not be detected by bank reconciliation…………………??? ????????????????????
Unrecorded Cheque that have not cleared the bank Unrecorded Deposit that have not been cleared by bank Cheques written for incorrect amount
What does Cash transactions audit involves…………………???????? ???????????????
Enquire of management regarding any cash requirements or restrictions from debt agreements
Trace all cheques, deposits, and other cash changes from the cutoff statement to cash receipts and disbursements records, paying particular attention to dates and amounts.
Check each days cash vouchers having proper bills supporting them
See to it that no cash payment exceeds amount Rs.20,000
CONCLUSION
Audit program of cash & bank transaction audit helps to:
Enhance creditability
Moral check to prevent fraud & embezzlement
Obtain loans & advances
Audit evidence is persuasive in nature rather than conclusive
Auditors opinion is not jointly responsible with the management.
doc_786060858.pptx
ppt on:
"audit program of cash and bank transactions audit"
AUDIT PROGRAM OF CASH AND BANK TRANSACTIONS AUDIT
Definition
AUDIT
AUDIT PROGRAM
It is a set of polices and procedures that dictate how auditing is to be implemented
So what are the objectives of an auditor to check cash and bank balances…………………??????? ??
? ? ?
To check that they are accurately recorded. And if recorded then holds your client name And if it holds it then auditor should check that its actually existing.
What does bank transactions audit involves…………………???????? ???????????????
To check proper bank reconciliations or proof of cash are prepared
All bank statement of each month ended with their reco should be maintained properly in a bank statement file and match with your tally account
Bank transactions are checked and approved
Outstanding items should not prevail for a long period of time
Vouchers are appropriately prepared and properly approved by designated authority
Document logical commercial reasons for new account opened or any closed during the year
If voucher found without entry check and make note if it’s a cancelled cheque
Compare current year balances with last year balances and ensure that any significant variation should be properly and logically reasoned
All deposit made should be cleared within two days
Proper disposition of the amount under proper ledger
Account for the numeric sequence of cancelled cheques. Investigate missing cheques.
Ace Company 6462
Ace Company
Ace Company Ace Company Ace Company 6457 6458 6459
6461
NATIONAL BANK
What will a bank reconciliation help the auditor determine………………..?
Whether all client cash receipts have been deposited
Whether all client cash payments have been paid by the bank
Whether all bank payments have been recorded in client cash payments records
What will not be detected by bank reconciliation…………………??? ????????????????????
Unrecorded Cheque that have not cleared the bank Unrecorded Deposit that have not been cleared by bank Cheques written for incorrect amount
What does Cash transactions audit involves…………………???????? ???????????????
Enquire of management regarding any cash requirements or restrictions from debt agreements
Trace all cheques, deposits, and other cash changes from the cutoff statement to cash receipts and disbursements records, paying particular attention to dates and amounts.
Check each days cash vouchers having proper bills supporting them
See to it that no cash payment exceeds amount Rs.20,000
CONCLUSION
Audit program of cash & bank transaction audit helps to:
Enhance creditability
Moral check to prevent fraud & embezzlement
Obtain loans & advances
Audit evidence is persuasive in nature rather than conclusive
Auditors opinion is not jointly responsible with the management.
doc_786060858.pptx