Chapter23 Audit of Cash Balances(审计学-英文版).doc

Chapter23 Audit of Cash Balances(审计学-英文版)
Audit of Cash Balances
Chapter 23
Learning Objective 1
Show 4>the relationship of cash
in the bank to the various
transaction cycles.
Relationships of Cash in the Bank 6>and Transaction Cycles
Cash in Bank
Capital Stock – Common
Paid-in Capital in Excess
of Par – Common
Redemption
of stock
Redemption
of stock
Issue of
stock
Issue of
stock
Dividends Payable
Payment of
dividends
Capital Acquisition And Repayment 8>Cycle
Relationships of Cash in the Bank and Transaction Cycles
Acquisition and Payment Cycle
Cash in Bank
Accounts Payable
Payment
Relationships of Cash in the Bank and Transaction Cycles
Sales and Collection Cycle
Cash in Bank
Accounts Receivable
Gross Sales
Cash
sales
Cash
receipts
Cash Discounts Taken
Relationships of Cash in the Bank and Transaction Cycles
5>Payroll and 7>Personnel Cycle
Cash in Bank
Accrued Wages, Salaries,
Bonuses, missions
Withheld e Taxes
and Other Deductions
Payment
Payment
Accrued Payroll
Tax Expense
Payment
Cash in the Bank and Transaction Cycles
Failure to bill a customer
Billing a customer at a lower price than
called for pany policy
A defalcation of cash by interception of
cash receipts from customers before
they are recorded, with the account
charged off as a bad debt
Misstatements which may not be discovered
as a part of the audit of the bank reconciliation:
Cash in the Bank and Transaction Cycles
Duplicate payment of a vendor’s invoice
Improper payments of officers’ personal
expenditures
Payment for raw materials that were not
received
Payment to an employee for more hours
worked
Payment of interest to a related party for
an amount in excess of the going rate
Cash in the Bank and Transaction Cycles
Misstatements which are normally discovered
as a part of the tests of a bank reconciliation.
Failure to include a check that has not
cleared the bank, even though it has been
recorded in the cash