Assertions - Cash

Question 1

Completeness - Cash

Answer 1

Cash receipts: trace daily remittance list to last validated deposit ticket for the period.

Cash disbursements: determine last check written for the period and trace effect to accounting records.

Determine all outstanding checks have been listed on bank rec.

Compare budget to year end.

Question 2

Accuracy - Cash

Answer 2

Compare sample daily remittance lists with deposits, journal entries and ledger postings.

Compare G/L balances with financial statements.

Question 3

Valuation/Allocation - Cash

Answer 3

n/a

Question 4

Existence - Cash

Answer 4

Does cash exist? Watch for substitution.

Bank confirmation / reconciliation.

Question 5

Cutoff - Cash

Answer 5

Trace daily remittance lists for several days prior to and after year end.

Identify and trace last check written for the year.

Question 6

Rights/Obligations - Cash

Answer 6

n/a

Question 7

Occurrence - Cash

Answer 7

Vouch sample of recorded cash receipts to A/R and customer orders.

Vouch sample of recorded cash disbursements to approved vouchers.

Question 8

Classification / Understandability - Cash

Answer 8

Determine restricted cash is reported in non current asset section of balance sheet.

Reconcile amounts included in statement of cash flows to other financial statement balances and amounts.

Evaluate financial statement disclosures.