Auditing Cash – Applying Basic Skills to the Starting Point of Any Audit

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