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Audit of cash and bank balances

Prashanth (Chartered Accountant) (2322 Points)

03 June 2012

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?

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3 Replies

Joey Tribbiani (fdg) (2010 Points)
Replied 03 June 2012

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???

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Ankita Benegal (CA Final) (66 Points)
Replied 03 June 2012

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! :)

1 Like

mirasolB (none) (24 Points)
Replied 23 June 2012

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