What is a cash audit?

Cash audit is a type of accounting audit that focuses on cash transactions conducted between the identified start date and the termination date. The audit of this type may be considered full or partial, depending on whether only certain transactions are evaluated, or whether any monetary transaction is reviewed relevant to the audit. The purpose of the monetary audit is to ensure that all investigated transactions are made in accordance with the generally received accounting procedures and that the transactions comply with the principles and procedures of the company involved.

In general, a monetary audit is structured to achieve two purposes. The first focuses on the type of deposits or posts of cash that are accepted and how they are recorded in the accounting records. Along with the solution of revenue from funds, the audit also carefully looks at any type of paycheck made as cash transactions, and make sure that these payouts are properly documented and a waist authority has been carried out. As a final aspectThe cash audit also makes sure that the income and payouts are assembled so that the amount of cash that is displayed as at hand or deposit is justified by a combination of cash transactions.

The amount of cash audit may focus on specific types of cash transactions or include a total assessment of transactions made in a given period of time. For example, a small cash audit would not deal with any money other than those related to contributions to and paying from the petty cash account. Other times, a complete audit may be required to prepare books for closure at the end of the calendar or the business year or even in preparation for the preparation of the annual tax return. If there is some suspicion of incorrect funding of funds or a good chance that the Board of Directors or others would require complete audit of accounting books to deal with partialby audit only selected types of transactions.

While the company is likely to perform a monetary audit at least once a year, the process can actually be implemented at any time. It is only necessary to identify the start date and the termination of the transactions that will be evaluated and the type of cash transactions. The audit of this type can be easily performed for a calendar month, a single quarter or even as a half -annual audit that allows you to identify and align any problems earlier in the business year than to try to do so at the end of the longer period. Although the idea of ​​a cash audit sometimes evokes the idea that someone has not intentionally approved the company's cash assets, the audit also identifies simple publishing errors that sometimes occur, allowing you to repair and maintain the company's accurate and current accounting records.