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Effective Work Program

The document outlines objectives for evaluating cash management, including ensuring proper presentation and existence of cash in financial statements, and assessing the internal control system. It details compliance tests for internal cash controls and substantive tests for verifying cash balances and bank accounts. The overall goal is to ensure accuracy, availability, and proper documentation of cash and financial resources within the entity.

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15 views2 pages

Effective Work Program

The document outlines objectives for evaluating cash management, including ensuring proper presentation and existence of cash in financial statements, and assessing the internal control system. It details compliance tests for internal cash controls and substantive tests for verifying cash balances and bank accounts. The overall goal is to ensure accuracy, availability, and proper documentation of cash and financial resources within the entity.

Uploaded by

ScribdTranslations
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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OBJECTIVES

The general objectives of this area are:


The cash owned by the entity is included in the balance sheet. (Property)
If the funds and deposits meet the conditions for immediate availability
and without restriction on its use and destination. (Existence)
Review if the financial statements are presented in accordance with Standards
International Accounting. (Presentation)
In cash and banks, all available funds and deposits are presented that
they exist and if they are property of the entity. (Accuracy)

The proper presentation of cash in the Balance Sheet and whether it exists
restriction on the immediate availability of resources, must be shown in the
Notes to the Financial Statements. (Presentation, Existence, Valuation)
Evaluate the Internal Control System.

Compliance Tests
Obtain knowledge of internal cash control through the
implemented procedures and document them.
Evaluate the risk of internal control and design compliance tests.
Conduct tests on internal controls such as:
a) Test the implemented internal controls and accounting over the
daily income, invoices, collection reports, and amounts received in
correspondence and its deposit to the bank.

b) Compare a sample of cash income with the transfers of


accounts receivable and deposits.
c) Compare a sample of disbursements recorded in the journal with the
transfers of accounts payable, purchase orders, invoices, and checks
paid.
d) Document the segregation of functions for recording operations,
authorization and custody of cash and valuables.
Review, document, and evaluate the coverage of employee finances that
They manage cash and assets to establish the protection of the entity.
Obtain copies of the surprise audits conducted by the department of
internal audit, to identify possible shortages, following up on the
recovery.
Verify the preparation of monthly bank account reconciliations.
carried out by an independent employee.
Substantive Tests
Make confirmations with the banks to verify the deposit amounts,
bank accounts in the name of the entity and loans obtained.
Obtain bank account reconciliations as of the balance sheet date
to verify your detail.
Obtain cash balances and reconcile them with the general ledger.
Obtain bank statements after the closing date.
Conduct cash counts for the cashier and fixed funds.
Verify customer cuts of income and cash outflows.
Analyze the bank transfers at the end of the year.
Investigate checks with significant and unusual amounts with the
support documentation and accounting records and auxiliary.
Issue a conclusion about the area subject to examination based on the evidence of
audit.

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