What Is a Cash Audit?

The cash audit is an audit of the cash receipts, payments and balances of the company and the implementation of the cash management system. The main contents are as follows: (1) The actual amount of cash in stock is indeed owned by the enterprise. Usually, an unannounced inspection method is used to check the amount of cash in stock and check it with the cash journal balance. If there is an overflow, the cause should be found out; (2) the authenticity and legality of the economic business recorded in the cash receipt and payment certificate, Depending on whether it complies with the requirements of national policies, laws and regulations and plans; whether there is any behavior that violates fiscal discipline or any fraud; (3) check the cash income voucher, find out the self-made sales invoices and receipt stubs, and compare them with the cash diary Check the accounts one by one to see if they are consistent; (4) Find out whether there is any illegal behavior such as cash misappropriation; find out whether there is off-book cash and private "small vaults"; (5) check the implementation of the cash management system , Whether the implementation of the provisions of the inventory cash limit is serious, and whether there is a problem of borrowing to offset cash; (6) Evaluate whether the internal cash control system is sound, whether it is implemented seriously, and put forward constructive comments on existing deficiencies. ^[1]

Cash audit

1.Cash

The audit of cash is mainly carried out from three aspects:

1. Understand the internal cash control system. The necessary information is mainly collected through inquiry, observation and other survey methods, and also through the preparation of a cash flow internal control system flowchart method. In general, when you understand the internal control of cash, you should first check whether the system is established and strictly enforced, and then understand whether the revenue and expenditure of funds are handled in accordance with prescribed procedures and permissions, and whether there are any revenue and expenditure that are unrelated to the unit s funds. Whether the cashier's and accounting responsibilities are strictly separated, whether the cash is properly kept, whether it is regularly counted, checked, etc.

2.Extract and review

I. A long cash payment occurred during the inventory check, but the accounting and cashier book balances at the time of the audit were the same as the adjusted balances of the accounting books at the time of the inventory (the cashiers were booked at the time of the inventory, but the accounts were not accounted for). The inventory has been taken at the time of the audit and there is no short or long payment. The problem lies in the period from the audited time to the audit inventory date, such as the unit has an external account. The inspection methods are as follows: (1) Check the sequence number of the cash check that the cashier has used, whether there is any withdrawal from the bank and the accounting cashier has not recorded the account, whether the check stub is missing, and check that the bank deposit statement is not up Accounts. (2) Check the cash receipt receipts of the cashier, whether there are any missing receipts in the cash receipt receipts, whether the stubs are missing, and the accounting cashiers are not recorded. (3) Analyze whether the long funds are off-account funds. First, understand the service functions of the internal institutions of the unit. Analyze whether there is a possibility that the functional institutions may not charge to the service object in accordance with the policy or without policies. ; Conduct a fee survey again to those served by the functional agencies, and understand that there are five project fees and charging standards, and whether the receipt notes are legal and compliant. (4) Investigate whether the unit has other income such as off-book rental income, income from disposal of property and materials, etc. (5) It is required that the unit's cashier, accountant, and leader conduct self-examination and submit the self-examination results to the audit team in written materials within a time limit.

2. A short cash payment occurred during the inventory check, but the accounting and cashier book balances at the time of the audit and the adjusted balance of the accounting books at the time of the inventory were the same as the cashier books. At the time of the audit, the inventory has been taken and there are no short and long records. The problem lies between the time of the audit and the audit inventory date. If the inventory is not performed at the time of the audit, the problem may be before, after or before the time of the audit. Until the audit inventory date. The inspection methods are: (1) check the authenticity of the white stripe and the receipt receipt, and check whether the receipt receipt has been falsified and fraudulently obtained; (2) ask the cashier to recall whether there is an invoice lost or not obtained for the cash expenditure; (3) ) Auditors should use national laws and regulations and related policies to do a good job of ideological work to track the misappropriation of short funds; (4) Require cashiers and unit leaders to find out the reasons for short funds within a prescribed period of time and write the inspection results in words The materials are submitted to the audit team.

3. There is no short or long cash in the inventory. The adjusted balance of the accounting book is the same as the cashier's book balance, but the balance of the accounting book and the cashier's book at the time of the audit is different. One case is that the accounting book balance is less than the cashier's book balance, which may be that the account recorded less revenue or more records before the audited time point, and the accountant has already made up or adjusted the account after the audited time point to the date of the audit inventory; One case is that the accounting book balance is greater than the cashier's book balance, which may be that the cashier records less revenue or more expenditures before the audited time point, and the cashier has made supplementary records or adjusted accounts after the audited time point to the audit inventory date. The inspection methods are: monthly check the accumulative balance between the debit and lender of the book from the time when the accounting cashier is audited to the date of the audit inventory, and check the difference between the accumulative balance of the one party or the accumulative balance of the borrower and the borrower, and the audited The difference between the accounting at the point in time and the cashier's book is compared, and then the difference is checked against the cashier's account records according to the accounting books, bookkeeping vouchers and original documents attached.

4. The cash in the cashier account is not long or short during the inventory. The adjusted balance of the accounting book is different from the cashier's book balance, but at the time of the audit, the accounting and cashier's book balance are the same. The first is whether the accountant will record more income expenditures or less income expenditures to the audit inventory date after the audited point of time; the second is the possibility that the cashier will record less income or more expenditures to the audit inventory date after the audited point of time, and to keep the excess book The balance of cash was placed elsewhere and was not included in the audit inventory. The inspection methods are: (1) using the balance subtraction method, comparing the difference between the current month's general ledger balance minus the previous month's general ledger balance and the current month's detailed account balance minus the previous month's detailed account balance month by month, to see the difference between the two Whether they are equal. If they are not equal, it indicates that the accounting and the cashier's bookkeeping are not consistent this month. Based on the difference between the two, the accounting and cashier book balances are checked one by one to find out the cause of the problem in the current month. If there is still a discrepancy between the book balance of the accountant and the cashier, the same method should be used to check the counterclockwise of the accounting month month by month until the cause of the discrepancy between the two accounts is found. (2) Using the cumulative balance reconciliation method, the accounts and the cashier's accounts and the cumulative balance of income and expenditure are reconciled monthly to find the difference, and the result of the reconciliation may determine whether the difference between the two accounts is on the income side or the expenditure side. If there are multiple errors, it may also occur on both the income and expenditure sides. After determining the direction of the error, check each account of the accounting and cashier accounts one by one, if necessary, register them one by one and check each other until you find out the reason for the discrepancy between the two accounts.

5. In the inventory, long or short balances are generated based on the book balance of the cashier. There is no long or short balance in the adjusted balance of the accounting book, but the accounting at the time of audit is consistent with the book balance of the cashier. The problem may be that the cashier re-records or records more income, misses or under-records expenditures, and errors should occur from the audited point to the audit inventory date. The inspection methods are as follows: (1) Check that the accounting and cashier's book balances have the same duration after the audited time point, until the months when the balances of the two are different, so as to determine that the problem lies between the months when the balances of the two are different and the audit inventory date. (2) Starting from the month of different book balances, check the cumulative amount of the accounting and cashier's book revenue and expenditure. If the income is the same, the problem lies with the expenditure side, otherwise, the problem lies with the income side. During the inspection, the amount of the long or short payment shall be used to find out whether there is any re-recording of income or omission of expenditure, and whether the recorded income or expenditure is misaligned, resulting in more or less recording. (3) Check whether the cashier's book balance is settled. (4) Check whether the accounting is consistent with that of the cashier in the month using the balance subtraction method.

6. The amount of the accounting statements at the time of the audit is less than the general ledger, greater than or less than the cashier detail account. The time when the problem occurred is first locked in the current month at the time of audit, and then the months before the time of audit are considered. The reasons are: (1) the inventory cash at the time of the audit is greater than the prescribed limit approved by the bank, in order to avoid supervision and inspection, when filling in the accounting statement, the cash account is exchanged with other accounting subjects; (2) the account is being aggregated when the account is aggregated There is a mismatch between the subjects, resulting in a discrepancy between the general ledger and the detailed ledger. Check the number of entries in the accounting statements to see if they are consistent with the general ledger of each subject. If the discrepancies are related to the cash ledger. (2) The accounting statement is larger or smaller than the cashier detailed account. Due to the large number of detailed account pages set under the general ledger of some accounting subjects, the accountants are first required to conduct a self-check on whether the general ledger and the detailed ledger of each account are consistent. . In the case of no self-examination by the accountants, the auditors should use the balance subtraction method to check the entire general ledger and the detailed ledger. The sum of the balances indicates that there are no errors in the accounting general ledger and detailed ledger records in the current period. You must further check monthly counterclockwise according to the accounting month at the time of the audit, until the general ledger and detailed ledger match, and the balance of the two accounts is consistent. The basic work is poor, the account mismatch takes a long time, and there are many errors. Auditors should not be limited to checking the accounts. They should also instruct the audited unit to check them within a time limit in the audit report and report the results to the auditing authority.