1、17 - 12003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyAudit of Cash BalancesChapter 1717 - 22003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyLearning Objective 1Show the relationship ofcash in the bank to thevarious transac

2、tion cycles.17 - 32003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyRelationships of Cash in the Bank and Transaction CyclesCash in BankCapital Stock CommonPaid-in Capital in Excessof Par CommonRedemptionof stockRedemptionof stockIssue ofstockIssue ofstockDividen

3、ds PayablePayment ofdividendsCapital Acquisition and Repayment Cycle17 - 42003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyRelationships of Cash in the Bank and Transaction CyclesCash in BankAccounts PayablePaymentAcquisition and Payment Cycle17 - 52003 Prentice

4、 Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyRelationships of Cash in the Bank and Transaction CyclesCash in BankAccounts ReceivableGross SalesCashsalesCashreceiptsCash Discounts TakenSales and Collection Cycle17 - 62003 Prentice Hall Business Publishing, Essentials of A

5、uditing 1/e, Arens/Elder/BeasleyRelationships of Cash in the Bank and Transaction CyclesCash in BankAccrued Wages, Salaries,Bonuses, and CommissionsWithheld Income Taxesand Other DeductionsPaymentPaymentAccrued PayrollTax ExpensePaymentPayroll and Personnel Cycle17 - 72003 Prentice Hall Business Pub

6、lishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyCash in the Bank andTransaction Cycles Failure to bill a customer Billing a customer at a lower price than called for by company policy A defalcation of cash by interception of cash receipts from customers before they are recorded, with the acc

7、ount charged off as a bad debtMisstatements which may not be discoveredas a part of the audit of the bank reconciliation17 - 82003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyCash in the Bank andTransaction Cycles Duplicate payment of a vendors invoice Improper

8、payments of officers personal expenditures Payment for raw materials that were not received Payment to an employee for more hours worked Payment of interest to a related party for an amount in excess of the going rate17 - 92003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Eld

9、er/BeasleyCash in the Bank andTransaction CyclesMisstatements which are normally discoveredas a part of the tests of a bank reconciliation. Failure to include a check that has not cleared the bank, even though it has been recorded in the cash disbursements journal Cash received by the client subsequ

10、ent to the balance sheet date but recorded as cash receipts in the current year17 - 102003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyCash in the Bank andTransaction Cycles Deposits recorded as cash receipts near the end of the year, deposited in the bank in th

11、e same month, and included in the bank reconciliation as a deposit in transit Payments on notes payable debited directly to the bank balance by the bank but not entered in the clients records17 - 112003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyLearning Object

12、ive 2Identify the major types ofcash accounts maintainedby business entities.17 - 122003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley General cash account Imprest payroll account Branch bank account Imprest petty cash fund Cash equivalentsTypes of Cash Accounts1

13、7 - 132003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyRelationship of General Cashto Other Cash AccountsBranch BankCashEquivalentsImprest PayrollImprest PettyCash FundGeneralCash17 - 142003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/El

14、der/BeasleyLearning Objective 3Design and perform audit testsof the general cash account.17 - 152003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyMethodology for Designing Testsof Balances Cash In the BankIdentify client business risksaffecting cash in bank.Set t

15、olerable misstatement andassess inherent risk for cash in bank.Assess control risk for cash in bank.17 - 162003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyMethodology for Designing Testsof Balances Cash In the BankDesign and perform tests ofcontrols and substan

16、tive testsof transactions several cycles.Design and perform analyticalprocedures for cash in bankbalance.17 - 172003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyMethodology for Designing Testsof Balances Cash In the BankDesign tests of detailsof cash in bank bal

17、anceto satisfy balance-relatedaudit objectives.Audit proceduresSample sizeItems to selectTiming17 - 182003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyAcct. 101 General accountBalance per bank, 12/31$63,275Add deposit in transit 12/31 11,250$74,525Less outstandi

18、ng check 8,000Balance per bank, adjusted$66,525Audit Schedule for aBank ReconciliationScheduleA-2 DatePrepared by CO1/10/03Approved by PZ1/18/0317 - 192003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyBalance per books, 12/31$66,647Add: Note receivablecollected b

19、y the bank 1,325Interest income 265$68,237Less: Payment of electric bill 1,500NSF check 200Service charge 12Balance per books, adjusted $ 66,525Audit Schedule for aBank Reconciliation17 - 202003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyBalance-Related Objecti

20、ves: General Cash in the BankDetailtie-inCutoffPresentationand disclosureExistenceAccuracyCompleteness17 - 212003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyReceipt of a bankconfirmationReceipt of a cutoffbank statementTests of the bankreconciliationExistence,

21、Accuracy,and Completeness17 - 222003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyLearning Objective 4Recognize when to extend audittests of the general cash accountto test further for material fraud.17 - 232003 Prentice Hall Business Publishing, Essentials of Au

22、diting 1/e, Arens/Elder/BeasleyExtended Tests of theBank ReconciliationWhen the auditor believes that the year-end bankreconciliation may be intentionally misstated,it is appropriate to perform extended testsof the year-end bank reconciliation.In addition to these tests, the auditor must alsocarry o

23、ut procedures subsequent to the end ofthe year with the use of the bank cutoff statement17 - 242003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyThe accuracy of the information on the interbanktransfer schedule should be verified.The interbank transfers must be r

24、ecorded inboth the receiving and disbursing banks.The date of the recording of the disbursementsand receipts for each transfer must be inthe same fiscal year.Tests of Interbank Transfers17 - 252003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyDisbursements on the

25、 interbank transfer scheduleshould be correctly included in or excluded fromyear-end bank reconciliation as outstanding checks.Tests of Interbank TransfersReceipts on the interbank transfer schedule shouldbe correctly included in or excluded from year-endbank reconciliations as deposits in transit.1

26、7 - 262003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyLearning Objective 5Design and perform audit tests ofthe imprest payroll bank account.17 - 272003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/BeasleyTypically, the only reconcilingitems are outstanding checks.Audit of the ImprestPayroll Bank AccountPaycheck forDept. of Trea