One of the audit procedure we perform while auditing cash account is review of bank reconciliations for year, especially at month end. Auditor need to excel higher level of cautiouness while reviewing year-end bank reconciliation.
In this thread, we would like to highlight to our readers on the potential distortions ( on cash balance) resulted from unpresented cheque. To illustrate with an example:
Susan is the accountant of Company ABC, who has a December year-end. On 31 December 2008, Susan has approved a few cheques payable to their creditors, amounted to US$200k. Account executive has input the payments into the systems after Susan has approved the cheques. However, the cheques payable to their creditors are not delivered to their creditors until after year-end.
Is there any financial impact to the financial of the Company? Yes or No? If yes, what would be the impact then ?
Saturday, July 4, 2009
Subscribe to:
Post Comments (Atom)
4 comments:
hi,
hope to see your following post on this topic about the answer to the question of your post ASAP. Thanks
Dear Accounting & Auditing reader:
We have posted the answer in post #86.
Please check your answer against our answer. Thanks.
the cash balance will be understated
whats up everyone
Just saying hello while I look through the posts I'm trying to find out how to make an e-mail list with out having to spend a wad of cash on some training course
hopefully this is just what im looking for, looks like i have a lot to read Im trying to find a way to build an e-mail list.
Post a Comment