o Cash cycle
1. Abstract, Inventory and warehousing cycle (tests of controls) YOLANDA 2. Intro, Inventory and warehousing (substantive tests of transaction) AMY 3. Conclusion, Inventory and warehousing cycle (analytical procedures) JUSTINIA 4. Cash cycle (Test of controls) ANNABELLE
5. Cash cycle (substantive tests of transactions and analytical procedures) JENNIFER Methodology for Designing Tests of Details of Balances for Cash in the Bank Identify client business risks affecting cash in bank Phase I Set tolerable misstatement and assess inherent risk for cash in bank Phase I Assess control risk for cash in bank Phase I
Design and perform tests of controls and substantive tests of transactions for several cycles* Phase II Design and perform analytical procedures for cash in bank balance Phase III Design tests of details of cash in bank balance to satisfy balance related audit objectives Phase III Audit procedures Phase
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Cash is a major account that is constantly involved and affected in all the account of the balance sheet and financial statement. For cash to be tested of the controls necessary to avoid fraud, it will have to look into the bank reconciliations of the cash accounts which can an affect many account of the balance sheet. The key cash accounts that maybe affect are the general cash account, imprest payroll account, and imprest petty cash fund. If fraud is an issue an audit may need to further test on the reconciliation procedures, proof of cash, and test of interbank transfers. The auditor must attain enough evidence to determine the general cash account is comparable to the balance sheet of the end of year for the balance related objective. Areas that may need to be controls should be transaction cycles...