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Difference in Cash

Others 254 views 4 replies
When physical cash is less than booked cash, this can be viewed as a case of defalcation.

But how does an auditor view the case when physical cash is more than the booked cash? Plus the auditor has already verified the accounting entries and they're all ok, and there's no liability to pay.
Replies (4)
Excess cash cannot happen. If it ever takes place then there can be two scenarios
1. expenses booked but amount not physically paid.
2.receipts less than amount booked.
3.
Unaccounted sales or unusual sales like fixed assets whose entry is generally missed. Also, capital Introduced in cash but not accounted.
Not acceptable. fixed asset sale is reflected in fixed asset register and in case your software existing is an integrated one. It I not possible Otherwise possible.

Who to make then cash flow


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