tailieunhanh - Lecture Auditing and assurance services (International edition) - Chapter 16: Auditing financing process: Cash and investments

In this chapter, the learning objectives are: Understand the relationship of the various business processes to cash, know the different types of bank accounts, know tests of details of transactions used to audit cash, be able to explain tests of details of account balances used to audit cash. | Chapter Sixteen Auditing Financing Process: Cash and Investments Cash and the Effect of Other Business Processes “Cash” reported in the financial statements represents currency on hand and cash on deposit in bank accounts, including certificates of deposit, time deposits and savings accounts. “Cash equivalents” are frequently combined with cash for presentation in the financial statements. Definition: Short-term, highly liquid investments that are readily convertible to known amounts of cash or which are subject to an insignificant risk of changes in value. Examples: Treasury bills, commercial paper, and money market funds. Cash and the Effect of Other Business Processes Types of Bank Accounts In order to maximize its cash position, an entity implements procedures for accelerating the collection of cash receipts and properly delaying the payment of cash disbursements. General Cash Account Imprest Cash Accounts Branch Accounts Types of Bank Accounts Substantive Analytical Procedures—Cash This limited use of substantive analytical procedures is normally offset by (1) extensive tests of controls and/or substantive tests of transactions for cash receipts and disbursements or (2) extensive tests of the entity’s bank reconciliations. Because of the residual nature of the cash account, the auditor’s use of substantive analytical procedures for auditing cash is limited to . . . comparisons with prior years’ cash balances. comparisons with budgeted amounts. Substantive Tests of Details of Transactions and Balances The Effects of Controls The reliability of the client’s controls over cash affects the nature and extent of the auditor’s tests of details. Controls for Cash Receipts Controls for Cash Disbursements Completion of Monthly Bank Reconciliation Balance-Related Assertions Auditing the General Cash Account Copy of Bank Reconciliation Bank Confirmation Cutoff Bank Statement To audit a cash account, the auditor should obtain these items. Bank Reconciliation Working Paper | Chapter Sixteen Auditing Financing Process: Cash and Investments Cash and the Effect of Other Business Processes “Cash” reported in the financial statements represents currency on hand and cash on deposit in bank accounts, including certificates of deposit, time deposits and savings accounts. “Cash equivalents” are frequently combined with cash for presentation in the financial statements. Definition: Short-term, highly liquid investments that are readily convertible to known amounts of cash or which are subject to an insignificant risk of changes in value. Examples: Treasury bills, commercial paper, and money market funds. Cash and the Effect of Other Business Processes Types of Bank Accounts In order to maximize its cash position, an entity implements procedures for accelerating the collection of cash receipts and properly delaying the payment of cash disbursements. General Cash Account Imprest Cash Accounts Branch Accounts Types of Bank Accounts Substantive Analytical .

• Kế toán - Kiểm toán
• Financial statement auditing
• Audit planning
• Internal control
• Auditing business processes
• Auditing financing process
• Auditing services
• Assurance services
• Auditing internal control
• Financial statement auditing environment
• Auditing demands logic
• Auditing environment
• Financial reporting
• Income statement accounts
• Financial statement audit
• Auditing the purchasing process
• Auditing the financing
• Internal auditing services