审计学（英文）_22 AUDIT OF' CASH BALANCE

AUDITOF CASH BALANCE 22 Society expects A Lot from auditors @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 22 AUDIT OF CASH BALANCE Society Expects A Lot From Auditors

FIGURE 22-1 Relationships of Cash in the bank and Transaction Cycles pital Acquisition and Repayment Cycle Acquisition and Payment Cycle Cash in the bank an d Transaction Cycles and commissions Payment Accounts receivable Withheld income taxes @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Cash in the Bank and Transaction Cycles

Cash in the bank and Transaction Cycles d Failure to bill a customer d Billing a customer at a lower price than called for by company policy a defalcation of cash by interception of cash receipts from customers before they are recorded, with the account charged off as a dab debt Duplicate payment of a vendors invoice d Improper payments of oficers'personal expenditures d Payment for raw materials that were not received a Payment to an employee for more hours than he or she worked d Payment of interest to a related party for an amount in excess of the going rate Arens. Loebbecke: Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Cash in the Bank and Transaction Cycles ¶ Failure to bill a customer ¶ Billing a customer at a lower price than called for by company policy ¶ a defalcation of cash by interception of cash receipts from customers before they are recorded, with the account charged off as a dab debt ¶ Duplicate payment of a vendor’s invoice ¶ Improper payments of officers’ personal expenditures ¶ Payment for raw materials that were not received ¶ Payment to an employee for more hours than he or she worked ¶ Payment of interest to a related party for an amount in excess of the going rate

TYPES OF CASH ACCOUNTS 2 General cash Account Imprest Payroll Account 2 Branch bank account 2 Imprest Petty Cash Fund 2 Cash Equivalents @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. General Cash Account Imprest Payroll Account Branch Bank Account Imprest Petty Cash Fund Cash Equivalents

FIGURE 22-2 Relationship of General Cash to Other Cash Accounts Branch bank Imprest payroll accou nt account General cash Imprest Cash petty cash equivalents fund @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 22 -2

AUDIT OF THE GENERAL CASHACCOUNT Receipt of a bank Confirmation Receipt of a cutoff Bank statement Tests of the Bank reconciliation @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. AUDIT OF THE GENERAL CASH ACCOUNT Receipt of a Bank Confirmation Receipt of a Cutoff Bank Statement Tests of the Bank Reconciliation

Clawson Industries FIRGURE 22-4 Acct. 101-General account, First National Bank Balance per Bank 109713xA、/ Working Paper for a Bank reconciliation 12/30 A71000 Deposit for another bank customer credited General account by bank, in error A-3 Balance per books before adjustments eturned by bank, not collectible C books, adjust x7 aod and ayad如如un V hood deps t the wme/999 aa oriel 2000 如 a eloff saleet Mol4pap diow a a dopo is tat ↓7 pond check如Sos19adk teams and ls“s/aay200 78%ada3199 adited Aiad如las @2000 Prentice hall. Inc M owled

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIRGURE 22 -4 Working Paper for a Bank Reconciliation

FIRGURE 22-5 密」 TANDARD FORM TO CONFIRM ACCOUNT BALANCE INFORMATION WITH FINANCIAL INSTITUTIONS CUSTOMER NAME Financial me and 1. At the close of business on the date listed above, our records indicated the following deposit balances): ACCOUNT NAME ACCOUNT NUMBER Standard confirmation General account 79751-974 709713.11A2 2. We were directly liable to the financial institution for loans at the close of business on the date listed above as follow of FinancialInstitution BALANCE DATE DUE INTEREST RATE DATE TH INTEREST IS PAID Account Balance Information ecurity N/A 6000000 Agreement ( Customers Authorized Signature (Date er is in agreement with our records. Although we have not conducted comprehensive, detailed search of our records, no other deposit or loan accounts have come to our except as noted bek (Financia rized Signature) TItle) EXCEPTONS AND/OR COMMENTS None ease retum this form directly to ones and Smith CPAs 2111 First Street Detroit, Michigan 487 @2000 Prentice hall. Inc and Bank Administration Institute. Additional forms available from: AICPA -Order Department, P.o. Box 1003, NY10108-1003

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIRGURE 22 - 5 Standard Confirmation of Financial Institution Account Balance Information

Types of audit Tests Used for General Cash in the Bank FIRGURE 22-5 Cash in bank Beginning balance Cash receipts Cash disbursements Audited b Audited by TOC-T, STOT, and AP/TOC-T, STOT, and AP Ending balance Audited by TOC-B, AP and TDB Tests of controls Tests of controls over bank Substantive tests Analytical Tests of Sufficient In transaction reconciliation of transactions*+ procedures + details of competent balances evidence (TOC-T) process STOT) (AP) (TOC-B) (TDB) per GAAs *Tests of controls in transaction cycles, substantive tests of transactions, and analytical procedures are done for the four transaction cycles included in Figure 22-1. The primary tests of the ending cash balance are tests of details of balances @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIRGURE 22 - 5 Types of audit Tests Used for General Cash in the Bank

FRAUD-ORIENTED PROCEDURES Extended Tests ofthe Bank reconciliation All recorded cash receipts were deposited all deposits in the bank were recorded in the accounting records All recorded cash disbursements were paid by the bank All amounts that were paid by the bank were recorded @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FRAUD-ORIENTED PROCEDURES Extended Tests of the Bank Reconciliation • All recorded cash receipts were deposited. • All deposits in the bank were recorded in the accounting records. • All recorded cash disbursements were paid by the bank. • All amounts that were paid by the bank were recorded