Table of Contents

Chapter 1 - Auditing Cash. 1

Cash Equivalents. 1

Auditor Objectives. 2

Auditing Characteristics of Cash. 2

Auditing Activities. 2

Inherent Risk Assessment 3

Material Misstatement Assessment 3

Substantive Procedures. 3

Obtain Balance Detail 4

Confirm Balances. 4

Reconcile Accounts. 7

Examine Cutoff 7

Count Cash. 8

Review Bank Transfers. 8

Conduct Analytical Procedures. 9

Review Presentation. 10

Internal Controls Used by the Client 10

Fraud Issues. 13

Skimming (No Recordation) 14

Discounted Sales (Partial Recordation) 14

Modification of Receipts (Altered Recordation) 14

Fake Refunds (Subsequent Recordation) 15

Lapping. 15

Bribery Accounts. 15

Account Inflation. 16

Review Questions. 17

Chapter 2 - The Bank Reconciliation and Proof of Cash. 18

The Reconciliation Process. 18

The Proof of Cash. 20

Review Questions. 22

Answers to Chapter Questions. 23

Glossary. 25

Index. 27

Final Examination………………………………………………………………………………………………29