Acct 4420 Chapter 12 new

Acct 4420 Chapter 12 new - Chapter 12 page 4 Assertion Cash...

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Acct 4420 Chapter 12 Audit of Cash  and Other Liquid Assets
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Chapter 12  Audit of Cash and Other Liquid Assets Chapter 12 page 2 Cash includes: General checking accounts Cash management accounts Imprest payroll accounts Audit Procedures include: Bank reconciliation (see Exhibit 12.4) Cut-off bank statement Bank confirmation (see Exhibit 12.5 and 12.6) Bank transfer schedules (see Exhibit 12.8)
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Exhibit 12.8  Bank Transfer Schedule Chapter 12 page 3 XYZ Company Year Ended December 31, 2009 DATE  DEPOSITED DATE  WITHDRAWN Transferred  from Branch Check  Number Amount Per Books Per Bank Per  Branch Books Per Bank Cleveland Cleveland Rockford Cleveland Rockford 15910 15980 8702 16110 8725 $ 45,000 100,000 87,000 25,000 65,000 12/26* 12/28* 12/30* 1/3* 1/5* 12/27† 12/29† 12/31† 1/4† 1/7* 12/26* 12/27* 1/2‡ 1/2* 1/4* 12/30† 12/31† 1/3† 1/5‡ 1/8† * Traced to cash receipts/disbursement records † Traced to bank statement ‡ Withdrawal recorded in wrong period.  See AJE C-11
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Unformatted text preview: Chapter 12 page 4 Assertion Cash Marketable Securities Existence or Occurrence Test cutoff Confirm with banks If held: Externally confirm Internally examine, count, verify certificate number Completeness Test cutoff Examine bank reconciliations or proof of cash Examine inter-company and inter-bank transfers Cutoff, Analytical Procedures Rights and Obligations Confirm with banks Confirmation, Physical inspection Valuation Confirm with banks Test cutoff Verify mathematical accuracy of recorded cash balances Per SFAS 115, valuation based on categorization: Held to Maturity Available for Sale Trading Securities Presentation and Disclosure Compare statement presentation and disclosures with GAAP Comparison with GAAP The End! Chapter 12 page 5...
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Acct 4420 Chapter 12 new - Chapter 12 page 4 Assertion Cash...

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