This document provides an audit program for cash and bank balances. It outlines 10 audit objectives and the related audit procedures and assertions. The objectives are to ensure cash and bank balances are completely recorded, exist, recorded at the proper value, owned by the client, and properly presented and disclosed in the financial statements. Audit procedures include testing controls, analytical procedures, and tests of details such as attending the year-end cash count, examining bank reconciliations, and ensuring disclosures meet regulatory requirements.
This document provides an audit program for cash and bank balances. It outlines 10 audit objectives and the related audit procedures and assertions. The objectives are to ensure cash and bank balances are completely recorded, exist, recorded at the proper value, owned by the client, and properly presented and disclosed in the financial statements. Audit procedures include testing controls, analytical procedures, and tests of details such as attending the year-end cash count, examining bank reconciliations, and ensuring disclosures meet regulatory requirements.
This document provides an audit program for cash and bank balances. It outlines 10 audit objectives and the related audit procedures and assertions. The objectives are to ensure cash and bank balances are completely recorded, exist, recorded at the proper value, owned by the client, and properly presented and disclosed in the financial statements. Audit procedures include testing controls, analytical procedures, and tests of details such as attending the year-end cash count, examining bank reconciliations, and ensuring disclosures meet regulatory requirements.
Prepared (i) Cash and bank balances by: Date: Reviewed by Date Client: Period: Subject: Cash and bank balances
Account balances: Amount in Rs.
Cash in hand Cash at bank- Current - PLS
Classes of transactions:
S. Audit Objectives Assertions Risk Assessment
No.
IR CR ROSM
1. All cash and bank balances are
completely and accurately recorded CA
2. All recorded cash and bank balances
actually exist. E
3. All cash and bank balances are
recorded at appropriate values. V
4. All cash and bank balances recorded
are owned by the client and title is also in the name of client. R
5. All cash and bank balances are OCAL
presented and all disclosures have been given in accordance with the Fourth Schedule of the Companies Ordinance, 1984 and relevant IASs. RVU
S. Audit Procedures Objective Done by W. P. Ref.
No.
Test of Controls
1. Assess the reasonableness of design of ALL
system of internal control by enquiring relevant client personnel and documenting the same (if not a documented system manual has been developed by the client). A walk through test would be necessary to confirm the understanding as documented. Identify the preventive (exercised before incurrence of transactions and event) and detective (exercised after incurrence of transactions and event) controls established by management to support its assertions.
2. Check on sample of selected transactions ALL
covering the whole period that all preventive controls are exercised on all transactions.
3. Check on a sample of transactions that ALL
detective controls are appropriately been exercised and in case of any detection of error/ fraud, proper steps have been taken to avoid recurrence of the same.
4. Check that proper bank reconciliations are ALL
prepared, checked and approved. Long outstanding items are followed up and proper disposition of such items is made.
5. Proper segregation of duties between CE
custodian and accounting and approving personnel exist.
6. Payments vouchers are appropriately ECA
prepared and properly approved by designated authority. S. Audit Procedures Objective Done by W. P. Ref. No.
7. Ensure that management does not override
the designed controls by
Enquiring from the designated staff
person
Remain skeptical during performing
test of design and test of effective operation
8. Document the conclusion after performing N/A
test of controls and required level of assurance from substantive procedures.
Analytical Procedures
1. Document logical commercial reasons for AU
new bank accounts opened and closed during the year.
2. Compare current year balances with last CEA
year balances and ensure that any significant variation should be properly and logically reasoned.
Test of Details
1. Attend year-end cash count and deposit E
verification.
2. Circularize direct confirmations to all ER
banks.
3. Trace opening balance in general ledger CE
from last year working papers.
4. Obtain and examine bank reconciliations CEA
ensure the following: -
No long outstanding item should
remain unfollowed,
No revenue nature item should be
appearing
All deposit made should be
S. Audit Procedures Objective Done by W. P. Ref. No.
cleared within two days
No long outstanding cheques of
significant amount are unpresented; if so then check their payment voucher and ensure that no discrepancy is involved.
5. Ensure that all balances etc. reported by CA
bank in replies to bank confirmation request are included in records of the client.
6. Ensure that no balances are subject any U
encumbrance, if so then disclosure is made.
7. Convert FCY accounts into PKR at year- V
end rate.
8. Ensure that all bank accounts are in R
company's name.
9. Ensure that closing balances as per our N/A
working paper file are in match with general ledger.
10. Determine that disclosures have been OCAL
made in accordance with the RVU requirements of Fourth Schedule to the Companies Ordinance, 1984 and the applicable IASs.