Audit Procedures for Bank (1)

Question 1

Bank bank confirmations client audit period (Completeness and existence)

Answer 1

Obtain standard bank confirmations from each bank with which the client conducted business during the audit period

Question 2

Bank cheques bank reconciliation statements items audit (Completeness and existence)

Answer 2

Trace cheques shown as outstanding from the bank reconciliation to cash book prior to the year and to after-date bank statements and obtain explanations for any large or unusual items not cleared at the time of the audit

Question 3

Bank cash book items outstanding (Completeness and existence)

Answer 3

Compare cash book(s) and bank statements in detail for last month of the year, and match items outstanding at reconciliation date to bank statements

Question 4

Bank cash book corresponding entries statement (Completeness and existence)

Answer 4

Obtain satisfactory explanations for all items in cash book for which there are no corresponding entries in bank statement through discussing with finance staff

Question 5

Bank restrictions enquiries (Rights and obligations)

Answer 5

Determine whether bank accounts are subject to any restrictions by enquiries with management

Question 6

Bank accounts secured assets discussion (classification)

Answer 6

identify whether any accounts are secured on the assets of the company by discussion with management

Question 7

Bank accounts legal right overdrafts (classification)

Answer 7

Consider whether there is a legal right of set-off of overdrafts against positive bank balances

Question 8

Bank accounts review draft bank standards (classification)

Answer 8

Review draft accounts to ensure that disclosures for bank are complete and accurate and in accordance with accounting standards