Audit of Cash Balances Flashcards
What are cash balances/floats often?
Individually immaterial but they may require some audit emphasis because of opportunities for fraud because of potential weak internal controls
What can happen in enterprises such as hotels and retail organisations?
Amount of cash-in-hand at period end could could be considerable
Why are cash counts important?
For itnernal auditors, who have a role in fraud prevention
What are auditors concerned about for cash?
That the cash exists
Is complete
Belings to the company (rights and obligations)
Stated at the correct value
What does the auditor determine?
Cash balances are potentially material they may conduct a cash count, ideally at the period end
What phases are there in the cash count?
Planning
Count itself
Follow-up procedures
