Auditing Cash – Applying Basic Skills To The Starting Point Of Any Audit

Learning Objectives

• To discover and discuss designing and performing standard audit procedures related to cash and cash equivalents.
• To identify and describe typical presentation and disclosure issues related to cash.
• To recall audit risks related to cash and cash equivalents
• To explore and explain how to evaluate audit evidence associated with this typically starting audit area, including evidence obtained through inquiry.
• To explore the concepts in detail through the case study 

Course Description

Cash is King. Cash makes the world go around. For any business management of cash is very important. Therefore auditing cash transactions is of crucial importance. 

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. Revenue and cash receipts are two critical areas that require strong controls to prevent intentional fraud or unintentional misstatements. Therefore, the audit of accounts and classes of disclosures related to cash and cash equivalents does tend to carry some level of risk of material misstatement.  

This Online CPE course discusses common audit procedures surrounding cash and cash equivalents, as well as steps for risk assessment to identify common risks found in this area. It will also demonstrate how the approach to auditing different cash accounts may vary. It also covers how you can strengthen inquiry which is an important audit procedure in the area of cash and cash equivalents. 

This Online CPE webinar covers the following Key Topics:

• 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
• Case study related to auditing cash and cash equivalents, including identifying and evaluating a misappropriation of cash
• Discuss how to obtain evidence through inquiry of the client

Click to access CPE webinars on Accounting & Auditing | IRS Audit CE webinars | 

Overview

• Risk Assessment for Cash

  2 mins
• Held Checks

  14 mins
• Electronic Bank Confirmations

  27 mins
• Cash in Excess of FDIC Limits

  40 mins
• Case Study - Additional Information

  66 mins
• Unrealized Gains/Losses - Debt and Equity Securities

  97 mins