Auditing TYPES OF CASH ACCOUNTS General cash accounts Imprest Accounts Imprest!

t! onl" holds #alance $or %hats going out the door& 'ranch #an( account Imprest pett" cash $und Cash e)ui*alents Financial instruments Identi$" client #usiness ris(s a$$ecting cash in #an( Cash could #e stolen collusion could occur no segregation o$ duties Set per$ormance materialit" and assess inherent ris( $or cash in #an( %hat "ou need to test $or reasona#le assurance Assess control ris( $or se*eral c"cles Cash reconciliation segregation o$ duties Control o*er "ear end cash #alances in the general account can #e di*ided into t%o categories Control o*er the transaction c"cles a$$ecting the recording o$ cash receipts and dis#ursements+ Independent #an( reconciliations ,esign and per$orm anal"tical procedures $or cash in #an( ,esign test o$ details o$ cash in #an( to satis$" #alance!related audit o#-ecti*es audit procedures Con$irmation.Testing o$ 'an( /econciliation& sample si0e largest targeting&& Cash 'alance /elated Audit O#-ecti*es E1istence Completeness Accurac" Cuto$$ ,etail tie!in

CHAPTER 20 the pa"roll and personnel c"cle++++ 'egins!!!!!!!2 Personnel Hiring Ends!!!!!!!!!!2 Pa"ments Human /esource /ecords !ta1 $orms !personal in$ormation !%age rates !per$ormance re*ie% Time and Pa"roll preparation Time /ecord 3o# time tic(et Pa"roll Transaction File Pa"roll 3ournal Pa"roll 4aster File A pa" role master $ile is used $or recording pa"roll transactions $or each emplo"ee and maintaining total emplo"ee %ages paid $or the "ear to date+ Pa"ment o$ Pa"roll Pa"roll Chec(s! pa" roll gets into impressed #an( acct Understanding Internal Control PAY/O55 AN, PE/SONNE5 CYC5E Ade)uate separation o$ duties proper authori0ation ade)uate documents and record ph"sical control o*er assets and records independent chec( on per$ormance /elationship #et%een pa"roll and in*entor" *aluation