CA IN PRACTICE... ( CA ) 29 December 2009
During my study to Chapter "Bank Audit" in Auditing i came to point that while doing Bank Audit the physical verification of cash is done to verify cash balances. I want to know that whether it is normally followed in Regular practice while doing audit by any Chartered Accountant.
If yes is it possible to count cash balances of bank or based on
register maintain by cashier.
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CA Anand Oberoi (Chartered Accountant) 29 December 2009
yes, while doing con-current audits of banks, it is mandatory to phsyically verify cash balance on any day of each month and to see whether it is tallied with cash summry register maintained by the bank.
dinesh (audit) 29 December 2009
Very first thing that we do in our Statutory audit programme is checking of cash balance....I would like to explain you how we do...
1)Check the Register maintained with the Real cash balance...
2)Next is to verify the Cash locker where moneys are usually kept in bundles...Verify the register maintained over there with Cash bundles....it is not necessary that you have to count each bundle...
3)If ATM is there ask them to open them and check the available balance with eletronic records shown by the machine.....