1、AUDIT PROGRAM FOR Cash & Bank Ref Audit Procedures - Nature, Timing and Extent W.P. Ref. Performed by_1.Compare the listing of cash and bank accounts with those of prior periods and investigate any unexpected changes (e.g., credit balances, unusual large balances, new accounts, closed accounts) or t
2、he absence of expected changes.2.Review interest received in relation to the average cash and bank balances.Cash balances3.(a) Obtain a copy of the list of balances of cash as at 31/12/1999 and 31/12/2000.(b) Check casting and agree total with general ledger control account.4.Scan cash entries notin
3、g any unusual items and make further investigation where considered necessary.Bank Balances5.(a) Obtain a copy of the list of balances of bank as at the period end date; and6.Bank Confirmation request (Note 2)(a) Get a standard bank confirmation request form from the stationery cupboard.(b) Fill in
4、the client name, our reference number and the period or year end date (please specify) for the bank to confirm.(c) Give the partial completed form to the relevant client staff .(d) Request the client to perform the following tasks: Stamp the form with the company chop; Have the form signed by an aut
5、horized signatory; Fill in the balances in the appropriate boxes; For items which are not applicable for the company, fill in “N/A” in the corresponding boxes; Confirm to us whether the form can be sent to the bank by mail or if the client is required to take the confirmation to the bank.YEAR END 31
6、 December 2000 Bank (Continued) Bank Balances (Continued)(e) Check the completed confirmation form to ensure the following: the balances agreed to the bank statements as at the confirmation date; the form is properly signed; the client has filled in all security and guarantee related matters on the
7、bank confirmation; Send the bank confirmation form to the bank by post.OrIf the client staff has to take the confirmation to the bank, arrange a staff to go with him/her. (Note 3)(f) Keep copies of the confirmation in the file until replies are obtained from the banks.(g) When replies are received,
8、check the confirmations received to ensure that: the forms were stamped and signed by the bank on the last page; the individual balances and information are endorsed by the bank staff personal chop. (Note 4)7.Examine the clients bank reconciliation as at 31/12/2000 as follows:a) agree book balance t
9、o Cash Book and General Ledger;b) agree balance per bank statement to bank statement at the year end and bank confirmation received;c) check casting of the bank reconciliation;d) vouch all lodgments / lodgments with amount greater than RMB _ * not clear to the cash book and bank statement in the fol
10、lowing month ensuring all lodgments are cleared; (Note 5)e) vouch all outstanding cheques / outstanding cheques with amount greater than RMB _ * to the cash book and to the bank statement in the following month & note down the date when they are cleared;f) obtain explanations from the client of all
11、outstanding lodgments / lodgment with amounts greater than RMB_ *;g) investigate all stale cheques / stale cheques with amount greater than RMB_ * issued for more than five / ten days *, and make appropriate adjustments thereof in the cash book and ledger; (Note 6)CLIENT h) investigate all payments
12、/ payments with amount greater than RMB_ * recorded by the bank but not recorded by the client, and make appropriate adjustments thereof in the cash book and ledger; (Note 6) andi) investigate all receipts / receipts with amount greater than RMB_ * recorded by the bank but not recorded by the client
13、, and make appropriate adjustments thereof in the cash book and ledger. (Note 6)8.Review the bank book for any unusual items (greater than RMB _) such as: a) non-trading receipts or payments andb) transfers in and out of the bank accounts.9.Select receipts larger than RMB _ and payments larger than
14、RMB _ within _weeks before and after the year end to ensure that they have been properly accounted for.General10.Review the cash and bank accounts in the general ledger for unusual items.11.Review the cash disbursements and cash receipts registers for unusual items; investigate any such items observ
15、ed.12.Review bank confirmations, minutes, loan agreements and other documents for evidence of restrictions on the use of cash, or of liens, or security interests in, cash.13.Consider the covenants and other narratives given in loan and other material agreements and determine compliance with the agre
16、ements and whether necessary disclosure have been made.14.Consider the implications of client management practices that result in recurring short term loan to finance working capital. Consider inquiry of client management and alert your senior / executive should such short term loans be encountered
17、in the audit.* Delete as appropriateNote 1i. The cash count should be performed by cashier with the presence of a staff that normally is not involved in the cashier function.ii. Cash certificate is acceptable only if the petty cash balance is considered as immaterial and / or the risk associated is
18、low/ minimal.Note 2i. Bank confirmations are sent on an individual branch basis, i.e. one confirmation per branch.ii. Confirmation should also be sent to accounts closed during the year.iii. If either the bank or the client refuses to reply/send the confirmation, consider if there is a significant l
19、imitation of our audit scope and its implications.Note 3When it is not feasible for an EYHM staff to go with the client, we must reconsider if the confirmation obtained provides sufficient and reliable audit evidence due to the lack of independence.Note 4Alternatively, the bank may issue its own ban
20、k certificate to confirm the deposits and loans balances and confirm that no other business transactions exiting.Note 5The extent of vouching work depends on our assessment of the likelihood of errors occurring.Note 6We have to consider the effect in aggregate regarding the unadjusted items which ar
21、e below the amount stipulated in this procedure whenever one is set.AUDIT PROGRAM FOR Accounts Receivable Obtain or prepare a listing of accounts receivable and investigateunusual balances. Credit balances, and accounts that may not be accounts receivable, or may not be properly classified as accoun
22、ts receivable trade (e.g. consignment accounts, related-party or employee accounts ).Trace the total in the customers ledger to the general ledger controlaccount: investigate reconciling items greater than _ and unusual items.Compare current periods receivables as a percentage of net sales withprior
23、 periods percentages. Compare discounts, returns, and allowances with prior periods (e.g. as 5 - 10% of sales).As of 31/12/2000, perform confirmation procedures for accounts as follows:a. Select key items (accounts greater than _ and accounts with the following characteristics: long aging, or involv
24、ed in legal case) for positive confirmation procedures.b. Using a MUS or Random technique, select a representative sample or account (as determined through use of Audit Risk Table _) for positive / negative confirmation procedures.c. Trace information (i.e. balance and addresses) from individual req
25、uests to the subsidiary records. Send requests and prepare confirmation statistics.d. Trace confirmation replies to the trial balance and request the client to reconcile differences. Investigate explanations for differences greater than _ and any unusual explanations.e. Send second requests for all
26、unanswered positive confirmation requests.f. Examine subsequent cash receipts, shipping records, sales contracts, and other evidence to substantiate the validity of accounts for which no reply or an unsatisfactory reply was received.g. Summarize the results of the confirmation procedures.Test sales cut-off for service rendering greater than for the Last days before year end and the first _days after year end. Determine that the sales were recorded in the proper period through review of shipping documents, billings, sales register and other supporting documents.AU
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