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13 views4 pagesCash Management and Control Procedures
The document outlines procedures and controls for cash management, including responsibilities, bank reconciliations, and the handling of checks and petty cash. It also details audit objectives and compliance tests to ensure proper internal controls and accurate financial reporting. The aim is to verify the existence, accuracy, and presentation of cash and bank balances in financial statements.
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0% found this document useful (0 votes)
13 views4 pagesCash Management and Control Procedures
The document outlines procedures and controls for cash management, including responsibilities, bank reconciliations, and the handling of checks and petty cash. It also details audit objectives and compliance tests to ensure proper internal controls and accurate financial reporting. The aim is to verify the existence, accuracy, and presentation of cash and bank balances in financial statements.
Translated by
ScribdTranslationsCopyright
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We take content rights seriously. If you suspect this is your content, claim it here.
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CASH
Is there a procedure manual that records, controls, safeguards,
assign responsibility, authorize and indicate the standard forms that are
Is it used to control the cash flow of income and expenses?
2. What are the functions of those responsible for cash management?
independent of those for the preparation and management of books?
3. Do the accounting and cash operations affect employees?
independent from each other?
4. Is there an auxiliary record of bank accounts and is it authorized by
the Management?
5. Is the responsibility of the people who handle funds defined and
values?
6. Are bank reconciliations carried out?
a. Who carries them out?
b. How often?
7. Are the revenues deposited into the bank accounts authorized by the
entity?
8. Are petty cash funds managed through fixed funds?
9. Is it prohibited to use cash funds to cash checks?
staff, employees, clients, and other people?
10. The petty cash value is managed entirely in cash.
If the previous answer is negative, they use cash for purchases.
minors.
12. Issues vouchers when cash is requested for the purchase of a good and/or
service.
CHEQUES/DOCUMENTS
13. Notify the currency exchange banks of people immediately.
authorized to sign checks?
14. Are the opening of bank accounts and responsible signatures
properly authorized?
15. Are the invoices and receipts pre-numbered and pre-printed?
16. Are the checks delivered by a person independent of who?
Does he prepare them?
17. Are checks issued for expenses incurred?
18. Are vouchers checks made?
19. Do the paid checks have invoices of support authorized by the
tax administration?
20. Are the petty cash disbursements properly supported by
proofs?
21. The refund checks are issued in favor of the person in charge.
from the bottom?
22. The checks bear the word 'NON-NEGOTIABLE'
23. The checkbook is under the custody of the person responsible for issuing checks and
is the one who requests it
24. There is control in the request for checkbooks
They have checks outstanding for more than six months
26.
Audit Program
OBJECTIVES
The general objectives of this area are:
The cash owned by the entity is included in the balance sheet.
(Property)
2. If the funds and deposits meet the conditions of
immediate availability and without restrictions regarding its use and
destination. (Existence)
3. Review if the financial statements are presented in accordance with standards.
International Financial Reporting. (Presentation)
4. In cash and banks, all funds and deposits are presented.
available that exist and whether they are owned by the entity.
Accuracy
5. The proper presentation of cash in the Balance Sheet and if
there is a restriction on the immediate availability of resources, it
it must be shown in the Notes to the Financial Statements.
(Presentation, Existence, Valuation)
6. Evaluate the Internal Control System.
PROCEDURES
Compliance Tests
1. Obtain knowledge of cash internal control through
of the implemented procedures and document them.
2. Evaluate the risk of internal control and design tests of
compliance.
3. Conduct tests on internal controls such as:
a) Test the implemented internal controls and of
accounting on daily income, invoices, reports
of collection and values received in correspondence and its
bank deposit.
b) Compare a sample of cash income with the
transfers of accounts receivable and deposits.
c) Compare a sample of recorded disbursements in
the journal with the transfers of accounts payable, orders
purchase, invoices and paid checks.
d) Document the segregation of registration functions
operations, authorization and custody of cash and securities.
4. Review, document, and evaluate the financial coverages of the
employees who handle cash and valuables to establish the
entity protection.
5. Obtain copies of the surprise audits conducted by the
internal audit department, to establish possible
missing, following up on the recovery.
6. Verify the preparation of monthly account reconciliations
banking transactions carried out by an independent employee.
Substantive Tests
7. Make confirmations to the banks to verify the amounts
of deposit, bank accounts in the name of the entity and
loans obtained.
8. Obtain bank account reconciliations as of the date of
balance sheet to verify its detail.
9. Obtain cash balances and reconcile them with the general ledger.
10. Obtain bank statements after the date of
closure.
11. Conduct cash counts for the cashier and fixed funds.
12. Verify client cut of revenues and disbursements
cash.
13. Analyze the bank transfers at the end of the year.
[Link] checks with large and unusual amounts with the
support documentation and accounting and auxiliary records.
15. Issue a conclusion about the area under examination based on the
audit tests.