Surgent's A Practical Guide to Auditing Cash and Cash Equivalents

Overview

Cash and cash equivalents tend to be one of the first areas assigned to new auditors since it tends to be straightforward with less complexity and risk as other areas. In addition, there is little subjectivity involved and persuasive audit evidence from a third-party is generally available. Interestingly enough, this is an area that can have a significant risk of misappropriation of assets if the appropriate level of segregation of duties and other internal controls is not present. New auditors should approach cash with the same professional skepticism as other areas since there is always the risk of material misstatement. (Please Note: This module is part of Surgent’s Audit Skills Training: Level 1.)

Highlights

Explain typical audit risks and special considerations related to cash and cash equivalents
Identify the risk of fraud related to cash and cash equivalents
Describe designing a detailed audit plan, linking assessed risk to planned procedures
Techniques used to perform the audit procedures associated with auditing cash and cash equivalents
Obtaining evidence related to cash and cash equivalents
Case study and test yourself questions related to auditing cash and cash equivalents

Prerequisites

None

Designed For

Professionals new to auditing cash and cash equivalents

Objectives

Identify risks related to cash and cash equivalents
Identify sources of audit evidence associated with cash and cash equivalents
Discuss standard audit procedures related to cash and cash equivalents
Explain how to evaluate audit evidence associated with cash
Describe typical presentation and disclosure issues related to cash