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: March 19, 2024

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - 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
11 Reviews (40 ratings)


Anonymous Author
This was an excellent but tough course to help understand the relevance, means and concepts related to auditing cash as a balance sheet asset.

Anonymous Author
Solid overview of the approach and techniques to audit cash. Basic stepping stone in the auditing process

Member's Profile
Course was helpful as a basic introduction to auditing cash. Presenter gave examples that were helpful.

Anonymous Author
Good deep dive into audit cash. Useful example procedures and review of assertions related to cash.

Anonymous Author
This course was helpful and the information was useful. I would recommend this course to others.

Anonymous Author
The instructor did a great job, the lesson shows her excellent level of expertise in the career.

Anonymous Author
there was no explanation how to tick or mark the cash balances, it s the only problem i see

Anonymous Author
This course was a good jumping off point for me to get back into accounting and auditing.

Anonymous Author
This was a helpful reminder of how auditors will test our cash balances. Thank you.

Anonymous Author
Very good coverage of the auditing requirements for cash & cash equivalents.

Anonymous Author
I think that every auditor would benefit from this course.

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
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: 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 .
Instructor for this course
Course Syllabus
  Learning Objectives to Auditing Cash1:23
  Auditing the Bank Reconciliation20:04
  Other Audit Procedures6:54
  Common Presentation and Disclosure Issues6:26
  Example-Designing an Audit Plan5:58
  Case Study-Reviewing Cancelled Checks6:50
  Inquiry Best Practices19:22
  General inquiry Do's and Don'ts11:06
  Statement of Cash Flows16:24
Continuous Play
  Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit1:40:13
Supporting Materials
  Slides: Auditing Cash - Applying Basic Skills to the Starting Point of Any AuditPDF
  Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit Glossary/IndexPDF
Review And Test