Audit 107: Auditing Cash - Applying Basic Audit Skills

Overview

Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit 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. 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. Note: This course is recommended as a part of a 16-hour audit skills curriculum for beginning auditors, while it is also appropriate for anyone who has responsibilities for auditing cash and cash equivalents. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Prerequisites

None

Objectives

Upon completion of this course, you will be able to...

• Identify designing and performing standard audit procedures related to cash and cash equivalents
• Recognize typical presentation and disclosure issues related to cash
• Recall how to evaluate audit evidence associated with this typically starting audit area, including evidence obtained through inquiry

Highlights

The major topics covered in this course include:

• Typical audit risks and special considerations related to cash and cash equivalents
• Designing a detailed audit plan, linking assessed risk to planned procedures
• Performing 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
• Identifying how to obtain evidence through inquiry of the client