Chapter23AuditofCashBalances(审计学英文版)课件

1、Chapter23 Audit of Cash Balances(审计学英文版)第1页，共34页。Learning Objective 1Show the relationship of cashin the bank to the varioustransaction cycles.第2页，共34页。Relationships of Cash in the Bank and Transaction CyclesCash in BankCapital Stock CommonPaid-in Capital in Excessof Par CommonRedemptionof stockRede

2、mptionof stockIssue ofstockIssue ofstockDividends PayablePayment ofdividendsCapital Acquisition And Repayment Cycle第3页，共34页。Relationships of Cash in the Bank and Transaction CyclesAcquisition and Payment CycleCash in BankAccounts PayablePayment第4页，共34页。Relationships of Cash in the Bank and Transacti

3、on CyclesSales and Collection CycleCash in BankAccounts ReceivableGross SalesCashsalesCashreceiptsCash Discounts Taken第5页，共34页。Relationships of Cash in the Bank and Transaction CyclesPayroll and Personnel CycleCash in BankAccrued Wages, Salaries,Bonuses, and CommissionsWithheld Income Taxesand Other

4、 DeductionsPaymentPaymentAccrued PayrollTax ExpensePayment第6页，共34页。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,

5、with the account charged off as a bad debtMisstatements which may not be discoveredas a part of the audit of the bank reconciliation:第7页，共34页。Cash in the Bank and Transaction Cycles Duplicate payment of a vendors invoice Improper payments of officers personal expenditures Payment for raw materials t

6、hat were not received Payment to an employee for more hours worked Payment of interest to a related party for an amount in excess of the going rate第8页，共34页。Cash in the Bank and Transaction CyclesMisstatements which are normally discoveredas a part of the tests of a bank reconciliation. Failure to in

7、clude a check that has not cleared the bank, even though it has been recorded in the cash disbursements journal Cash received by the client subsequent to the balance sheet date but recorded as cash receiptsin the current year第9页，共34页。Cash in the Bank and Transaction Cycles Deposits recorded as cash

8、receipts near the end ofthe year, deposited in the bank in the same month, and included in the bank reconciliation as adeposit in transit Payments on notes payable debited directly to thebank balance by the bank but not entered in the clients records第10页，共34页。Cash in the Bank and Transaction Cycles

9、Deposits received by the bank on behalf of thecompany from credit card agencies and other vendors making payments electronically, but not recorded in the clients records.第11页，共34页。Learning Objective 2Identify the major types of cashaccounts maintained bybusiness entities.第12页，共34页。 General cash acco

10、unt Imprest payroll account Branch bank account Imprest petty cash fund Cash equivalentsTypes of Cash Accounts第13页，共34页。Relationship of General Cash to Other Cash AccountsBranch BankAccountCashEquivalentsImprest PayrollAccountImprest PettyCash FundGeneralCash第14页，共34页。Learning Objective 3Design and

11、perform audit testsof the general cash account.第15页，共34页。Identify client business risks affecting cash inbank.Methodology for Designing Testsof Details of Balances for A/RPhase ISet tolerable misstatement and assess inherentrisk for cash in bank.Assess control risk for cash in bank.第16页，共34页。Methodo

12、logy for Designing Testsof Details of Balances for A/RDesign and perform tests of controls andsubstantive tests of transactions forseveral cycles.Phase II第17页，共34页。Methodology for Designing Testsof Details of Balances for A/RDesign and perform analytical procedures forcash in bank balance.Phase IIIT

13、imingItems toselectSamplesizeAuditproceduresDesign tests of details of cash in bank balanceto satisfy balance-related audit objectives.第18页，共34页。Audit Schedule for a Bank ReconciliationClawson IndustriesBank Reconciliation12/31/05Schedule A2 DatePrepared by Client DED 1/10/05Approved by SW1/18/05Acc

14、ount 101 General account, First National BankBalance per bank$109,713Add:Deposits in transit 21,117Deduct: Outstanding checks 87,462Other reconciling items: Bank error 15,200Balance per bank, adjusted$ 28,168Balance per books before adjustments$ 32,584Adjustments:Unrecorded bank service charge 216NS

15、F4,200 4,416Balance per books, adjusted$ 28,168第19页，共34页。Balance-Related Objectives: General Cash in the BankDetail tie-inCutoffPresentationand disclosureplus the three most important objectives:ExistenceCompletenessAccuracy第20页，共34页。Receipt of a bankconfirmationReceipt of a cutoffbank statementTest

16、s of the bankreconciliationExistence, Accuracy, and Completeness第21页，共34页。Types of Audit Tests Used for General Cash in BankCash in BankEnding balanceTOC-T + TOC-B + STOT + AP + TDB= Sufficient competent evidence per GAASAudited byTOC-T, STOT, and APBeginning balanceCash receiptsCash disbursementsAu

17、dited byTOC-T, STOT, and APAudited byTOC-B, AP, and TDB第22页，共34页。Learning Objective 4Recognize when to extend audittests of the general cash accountto test further for material fraud.第23页，共34页。Extended Tests of the Bank ReconciliationWhen the auditor believes that the year-end bankreconciliation may

18、 be intentionally misstated,it is appropriate to perform extended testsof the year-end bank reconciliation.In addition to these tests, the auditor must alsocarry out procedures subsequent to the end ofthe year with the use of the bank cutoff statement.第24页，共34页。 All recorded cash receipts were depos

19、ited. All deposits in the bank were recorded inthe accounting records. All recorded cash disbursements werepaid by the bank. All amounts that were paid by the bankwere recorded.Proof of Cash第25页，共34页。 the balance on the bank statement with the general ledger balance at the beginning of the proof-of-

20、cash period cash receipts deposited per the bank with the cash receipts journal for a given periodIncludes a reconciliation of:Proof of Cash第26页，共34页。 cancelled checks clearing the bank with the cash disbursement journal for a given period the balance on the bank statement with the general ledger ba

21、lance at the end of the proof-of-cash periodIncludes a reconciliation of:Proof of Cash第27页，共34页。The accuracy of the information on theinterbank transfer schedule should be verified.The interbank transfers must be recorded inboth the receiving and disbursing banks.The date of the recording of the dis

22、bursementsand receipts for each transfer must be inthe same fiscal year.Tests of Interbank Transfers第28页，共34页。Disbursements on the interbank transferschedule should be correctly included in orexcluded from year-end bank reconciliationas outstanding checks.Tests of Interbank TransfersReceipts on the interbank transfer scheduleshould be correctly included in or excludedfrom year-end bank reconciliations asdeposits in transit.第29页，共34页。L