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Audit of cash and bank balances

Statutory Audit 2677 views 3 replies

Dear Freinds,

Can some one help how to appoach for audit of cash and bank balances of a company in a detailed manner?

also expllain the cutoff procedures in respect of cash and bank balance?

 

Replies (3)

Since you have cleared you group 1 of final,I think the query is bit incomplete. You want to know vouching procedure of cash and bank balances or something else more technical???

For Cash-
obtain management certificate as to th balance shown by them as on the balance sheet date.this constitutes audit evidence.usually stat auditors visit client office and carry out cash verification on th bal sheet date,say 31.03.2012
For Bank-
1.obtain bank confirmation( in the letterhead of the bank confirimg the amount lying as on bal sheet date)-which is diff from bank statement(which shows monthly transaction and balance at the end.
2. BRS-

  • showing bal as per books
  •  items causing diff: add: chq issued not presented.less: chq deposited,not credited in bank
  • bal as per bank confirmation


best of luck with ur assignment! :)
 

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