SolutionARENSAuditing13eAEBSMCH231Word格式.docx
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scontrolsovercashreceiptsassisttheauditorindeterminingthatcashreceivedispromptlydeposited,thatreceiptsrecordedareproper,thatcustomeraccountsarepromptlyupdated,andthatthecashcutoffatyear-endisproper.Iftheresultsoftheevaluationofinternalcontrol,thetestsofcontrols,andthesubstantivetestsoftransactionsareadequate,itisappropriatetoreducethetestsofdetailsofbalancesforcash,especiallyforthedetailedtestsofbankreconciliations.Ontheotherhand,ifthetestsindicatethattheclient'
scontrolsaredeficient,extensiveyear-endtestingmaybenecessary.
23-2Theappropriatetestsfortheendingbalanceinthecashaccountsdependheavilyontheinitialassessmentofcontrolrisk,testsofcontrols,andsubstantivetestsoftransactionsforcashdisbursements.Thecompany'
scontrolsovercashdisbursementsassisttheauditorindeterminingthatcashdisbursedisforapprovedcompanypurposes,thatcashdisbursementsarepromptlyrecordedintheproperamount,andthatcashcutoffatyear-endisproper.Iftheresultsoftheevaluationofinternalcontrol,thetestsofcontrols,andthesubstantivetestsoftransactionsareadequate,itisappropriatetoreducethetestsofdetailsofbalancesforcash,especiallyforthedetailedtestsofbankreconciliations.Ontheotherhand,ifthetestsindicatethattheclient'
scontrolsareinadequate,extensiveyear-endtestingmaybenecessary.
Anexampleinwhichtheconclusionsreachedaboutthecontrolsincashdisbursementswouldaffectthetestsofcashbalanceswouldbe:
Ifcontrolsovertheissuanceofblankchecks,thereviewofpayees,amounts,andsupportingdocumentation,thesigningofchecks,andthereconciliationofbankstatementsandvendors'
statementsareadequate,theauditor'
sreviewofoutstandingchecksontheyear-endbankreconciliationmaybegreatlyreduced.Theyear-endoutstandingcheckscanbeverifiedbytestingasampleofchecksreturnedwiththecutoffbankstatementratherthantracingallpaidoutstandingchecksandthefinalmonthlychecksinthecashdisbursementsjournaltothelastmonth'
sclearedchecksandthebankreconciliation.
23-3Themonthlyreconciliationofbankaccountsbyanindependentpersonisanimportantinternalcontrolovercashbalancesbecauseitprovidesanopportunityforaninternalverificationofthecashreceiptsandcashdisbursementstransactions,investigationofreconcilingitemsonthebankreconciliation,andtheverificationoftheendingcashbalance.Anyoneresponsibleforthefollowingdutieswouldnotbeconsideredindependentforthepurposesofpreparingmonthlybankreconciliations:
Issuanceofchecks
Receiptanddepositofcash
Otherhandlingofcash
Recordkeeping
23-4Thecontroller'
sapproachistoreconcileuntilthebalanceagrees.Theshortcomingofthisapproachisthatitdoesnotincludeareviewoftheitemsthatflowthroughtheaccountanditopensthedoorfortheprocessingofimproperitems.Suchitemsascheckspayabletoimproperparties,reissuanceofoutstandingcheckstoimproperparties,andkitingoffundswouldnotbediscoveredwiththecontroller'
sapproach.Thecontroller'
sproceduresshouldincludethefollowing:
a.Examinationofallchecksclearingwiththestatement(includingthoseonpreviousmonth'
soutstandingchecklist)andcomparisonofpayeeandamounttothecashdisbursementsjournal.
b.Testofcashreceiptstodeterminethattheyaredepositedwithinareasonableamountoftime.
c.Follow-uponoldoutstandingcheckssothattheycanberecognizedasincomeafteritisdeterminedthattheywillnotbecashed,andnoliabilityexists.
23-5Bankconfirmationsdifferfrompositiveconfirmationsofaccountsreceivableinthatbankconfirmationsrequestseveralspecificitemsofinformation,namely:
1.Thebalancesinallbankaccounts.
2.Restrictionsonwithdrawals.
3.Theinterestrateoninterest-bearingaccounts.
4.Informationonliabilitiestothebankfornotes,mortgages,orotherdebt.
Positiveconfirmationsofaccountsreceivablerequestofthebuyertoconfirmanaccountbalancestatedontheconfirmationformordesignateadifferentamountwithanexplanation.Theauditoranticipatesfewexceptionstoaccountsreceivableconfirmations,whereaswithbankconfirmationsheexpectsdifferencesthattheclientmustreconcile.Bankconfirmationsshouldberequestedforallbankaccounts,butpositiveconfirmationsofaccountsreceivablearenormallyrequestedonlyforasampleofaccounts.Ifbankconfirmationsarenotreturned,theymustbepursueduntiltheauditorissatisfiedastowhattherequestedinformationis.Ifpositiveconfirmationsofaccountsreceivablearenotreturned,secondandmaybethirdrequestsmaybemade,butthereafter,follow-upsarenotlikelytobepursued.Alternativeprocedures,suchasexaminationofsubsequentpaymentsorothersupportofcustomers'
accountsmaythenbeused.
23-5(continued)
Thereasonwhymoreimportanceisplacedonbankconfirmationsthanaccountsreceivableconfirmationsisthatcash,beingthemostliquidofassets,mustbemorecloselycontrolledthanaccountsreceivable.Inaddition,otherinformation–suchasliabilitiestothebankmustbeknownforpurposesofthefinancialstatements.Finally,thereareusuallyonlyafewbankaccountsandmostbankaccountshavealargevolumeoftransactionsduringtheyear.
23-6Thisisagoodauditingprocedurethatattemptstodiscoverifanyaccountsthatshouldhavebeenclosedarestillbeingused,suchasbyacompanyemployeetodepositcustomerremittances.Theproceduremayalsodiscoverunrecordedandcontingentliabilities.
23-7Acutoffbankstatementisapartialperiodbankstatementwiththerelatedcancelledchecks,duplicatedepositslips,andotherdocumentsincludedinbankstatements,whichismailedbythebankdirectlytotheauditor.Thepurposeofthecutoffbankstatementistoverifythereconcilingitemsontheclient'
syear-endreconciliationwithevidencethatisinaccessibletotheclient.
23-8Auditorsareusuallylessconcernedabouttheclient'
scashreceiptscutoffthanthecutoffforsales,becausethecutoffofcashreceiptsaffectsonlycashandaccountsreceivableandnottheincomestatement,whereasamisstatementinthecutoffofsalesaffectsaccountsreceivableandtheincomestatement.
Forthepurposeofdetectingacashreceiptcutoffmisstatement,therearetwousefulauditprocedures.Thefirstistotracethedepositsintransittothecutoffbankstatementtodeterminethedatetheyweredepositedinthebankaccount.Becausetherecordedcashwillhavetobeincludedasdepositsintransitonthebankreconciliation,theauditorcantestforthenumberofdaysittookforthein-transititemstobedeposited.Ifthereismorethanatwoorthreedaydelaybetweenthebalancesheetdateandthesubsequentdepositofalldepositsintransit,thereisanindicationofacutoffmisstatement.Thesecondauditprocedurerequiresbeingonthepremisesatthebalancesheetdateandcountingallcashandchecksonhandandrecordingtheamountintheauditfiles.Whenthebankreconciliationistested,theauditorcanthencheckwhetherthedepositsintransitequaltheamountrecorded.
23-9Animprestbankaccountforabranchoperationisoneinwhichafixedbalanceismaintained.Afterauthorizedbranchpersonnelusethefundsforproperdisbursements,theymakeanaccountingtothehomeoffice.Aftertheexpenditureshavebeenapprovedbythehomeoffice,areimbursementismadetothebranchaccountfromthehomeoffice'
sgeneralaccountforthetotalofthecashdisbursements.Thepurposeofusingthistypeofaccountistoprovidecontrolsovercashreceiptsandcashdisbursementsbypreventingthebranchoperatorsfromdisbursingtheircashreceiptsdirectly,andbyprovidingreviewandapprovalofcashdisbursementsbeforemorecashismadeavailable.
23-10Thepurposeofthefour-columnproofofcashistoverify:
Whetherallrecordedcashreceiptsweredeposited.
Whetheralldepositsinthebankwererecordedintheaccountingrecords.
Whetherallrecordedcashdisbursementswerepaidbythebank.
Whetherallamountsthatwerepaidbythebankwererecordedascashdisbursementsintheaccountingrecords.
Twotypesofmisstatementsthatthefour-columnproofofcashismeanttouncoverare:
Cashreceivedthatwasnotrecordedinthecashreceiptsjournal
Checksthatclearedthebankbuthavenotbeenrecordedinthecashdisbursementsjournal
23-11Wheneveracutoffbankstatementisnotreceiveddirectlyfromthebank,theauditormayverifythebankstatementforthemonthsubsequenttoyear-end.Theauditproceduresusedfortheverificationareasfollows:
1.Footallofthecancelledchecks,debitmemos,deposits,andcreditmemos.
2.Checktoseethatthebankstatementbalanceswhenthetotalsin1areused.
3.Reviewtheitemsincludedin1tomakesuretheywerecancelledbythebankintheproperperiodanddonotincludeanyerasuresoralterations.
Thepurposeofthisverificationistotestwhethertheclient'
semployeeshaveomitted,added,oralteredanyofthedocumentsaccompanyingthestatement.
23-12Lappingisadefalcationinwhichacashshortageisconcealedbydelayingthecreditingofcashreceiptstotheproperaccountsreceivable.Thefirststepinthefraudistowithholdcashremittedbyacustomerfromabankdeposit.