TAILIEUCHUNG - Lecture Auditing and assurance services (Second international edition) - Chapter 16: Auditing the financing/investing process

Chapter 16 - Auditing the financing/investing process: Cash and investments. In this chapter, the learning objectives are: Understand the relationship of the various business processes to cash, know the different types of bank accounts, know tests of details of transactions used to audit cash, be able to explain tests of details of account balances used to audit cash. | Auditing the Financing/Investing Process: Cash and Investments Chapter Sixteen Cash and the Effect of Other Business Processes ‘Cash’ reported in the financial statements represents currency on hand and cash on deposit in bank accounts, including certificates of deposit, time deposits and savings accounts. ‘Cash equivalents’ are frequently combined with cash for presentation in the financial statements. Definition: Short-term, highly liquid investments that are readily convertible to known amounts of cash or which are subject to an insignificant risk of changes in value. Examples: Treasury bills, commercial paper, and money market funds. Cash and the Effect of Other Business Processes Types of Bank Accounts In order to maximize its cash position, an entity implements procedures for accelerating the collection of cash receipts and delaying the payment of cash disbursements, to the extent delay is appropriate. General Cash Account Imprest Cash Accounts Branch Accounts Types of Bank Accounts The Effects of Controls The reliability of the client’s controls over cash affects the nature and extent of the auditor’s tests of details. Controls for Cash Receipts Controls for Cash Disbursements Completion of Bank Reconciliation Substantive Analytical Procedures – Cash This limited use of substantive analytical procedures is normally offset by (1) extensive tests of controls and/or substantive tests of transactions for cash receipts and disbursements or (2) extensive tests of the entity’s bank reconciliations. Because of the residual nature of the cash account, the auditor’s use of substantive analytical procedures for auditing cash is limited to . . . comparisons with prior years’ cash balances. comparisons with budgeted amounts. Substantive Tests of Details of Transactions and Balances Balance-Related Assertions Auditing the General Cash Account Copy of Bank Reconciliation Bank Confirmation Cut-off Bank Statement To audit a cash account, the auditor should obtain these .

• Kế toán - Kiểm toán
• Assurance services
• Financial statement auditing
• Auditing services
• Auditing business processes
• Auditing internal control
• Investing process
• Assurance services profession
• Audit process
• Assurance framework
• Accounting information
• Financial statement audit
• Auditing and assurance services
• Auditing environment
• Professional standards
• Auditing standards
• Internal auditing services
• Contemporary auditing environment
• Attestation engagements
• Account balances
• Structure of the profession
• Audit firms
• Corporate governance
• Professional ethics
• Legal liability
• Liability to clients
• Financial repport audit process
• Financial report assertions
• The business
• Strategic business risk
• Inherent risk assessment
• Inherent risk
• Internal control structure
• Assessing control risk
• Tests of controls
• Sales cycle
• Substantive tests
• Substantive tests of transactions
• Audit sampling
• Sampling theory
• Adjusting events
• Financial report
• Auditor’s reporting obligations
• Professional reporting obligations
• Prospective financial information
• Highlight information
• Institute of internal auditors
• Government accounting
• Reporting duties