Description
Cash tends to be one of the first areas assigned to new auditors, as there is typically little complexity and subjectivity involved. In addition, persuasive audit evidence from a third-party is generally available. However, research shows that around 80% of asset misappropriation relates to cash. Therefore, the audit of accounts and classes of disclosures related to cash and cash equivalents does tend to carry risk of material misstatement.
Highlights
- Explain typical audit risks and special considerations related to cash and cash equivalents
- Describe designing a detailed audit plan, linking assessed risk to planned procedures
- Perform typical audit procedures associated with auditing cash and cash equivalents
- Discuss how to obtain evidence through inquiry of the client
Objectives
- Standard audit procedures related to cash and cash equivalents
- Case study related to auditing cash and cash equivalents, including identifying and evaluating a misappropriation of cash
- Typical presentation and disclosure issues related to cash
- Exercise related to do’s and don’ts in client interview situations
- Key controls related to cash receipts and cash disbursements
Designed For
Professionals new to auditing cash and cash equivalents