Instructor for this course
To Access This Course:

Cash tends to be one of the first areas assigned to new auditors, as there is typically little complexity and subjectivity involved. In addition, persuasive audit evidence from a third-party is generally available. However, research shows that around 80% of asset misappropriation relates to cash. Therefore, the audit of accounts and classes of disclosures related to cash and cash equivalents does tend to carry some level of risk of material misstatement.  This course demonstrates how the approach to auditing different cash accounts may vary and how to strengthen inquiry which is an important audit procedure in this area.

Major Topics:

  • Explain typical audit risks and special considerations related to cash and cash equivalents
  • Describe designing a detailed audit plan, linking assessed risk to planned procedures
  • Perform typical audit procedures associated with auditing cash and cash equivalents
  • Case study related to auditing cash and cash equivalents, including identifying and evaluating a misappropriation of cash
  • Discuss how to obtain evidence through inquiry of the client

Learning Objectives

  • Discover and discuss designing and performing standard audit procedures related to cash and cash equivalents.
  • Identify and describe typical presentation and disclosure issues related to cash.
  • Explore and explain how to evaluate audit evidence associated with this typically starting audit area, including evidence obtained through inquiry.
Last updated/reviewed: June 11, 2021

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Level 1 - Beginning Staff

  1. Professional Skepticism - Creating a Mindset for Finding Fraud and Error
  2. Audit Documentation - Creating Workpapers That Pass Review
  3. Adapting to the Engagement - Differentiating the Requirements of Preparations, Compilations, Reviews, and Audits
  4. The Audit Risk Model - Understanding Foundational Principles
  5. Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation
  6. Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit
  7. Auditing PP&E, Including Leases under Topic 842 - Digesting the Risks of Improper Treatment of Tangible Long-Lived Assets
  8. Auditing Inventory - Performing Required Observations and Other Common Procedures
  9. Analytical Procedures - Comprehending Financial Statement Audit Fundamentals
  10. Audit Reporting Fundamentals - Introducing Core Concepts in the Audited Financial Statement Drafting and Issuance Process
  11. AICPAs Code of Professional Conduct - Exploring the Foundational Principles Underlying the CPA Profession as a Whole
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services


Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course.
Designed For: Professionals requiring fundamental guidance in how to design and perform a detailed audit plan for a less-complex audit area.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  1:23Learning Objectives to Auditing Cash
  20:04Auditing the Bank Reconciliation
  6:54Other Audit Procedures
  6:26Common Presentation and Disclosure Issues
  5:58Example-Designing an Audit Plan
  6:50Case Study-Reviewing Cancelled Checks
  19:22Inquiry Best Practices
  11:06General inquiry Do's and Don'ts
  16:24Statement of Cash Flows
Continuous Play
  1:40:13Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit
Supporting Materials
  PDFSlides: Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit
  PDFAuditing Cash - Applying Basic Skills to the Starting Point of Any Audit Glossary/Index
Review And Test