While processes often vary among companies, implementing the items in this checklist should significantly reduce the likelihood of your business becoming the subject of another one of those stories. be difficult to achieve optimal separation of duties. In this way of audit cash, we compare the actual cash balances with budgeted figures including cash from anticipated payments on accounts receivable, cash receipts, and proceeds from debt and equity. The mail log could include items such as the customers’ names, amounts, and invoices being paid. Presented by the Office of Audit Services for. Unusual even dollar or high cash disbursement amounts for routine odd dollar or low value purchase. Texas Tech University Health Sciences Center. Audit programs can be developed only after the auditor has completed the audit _____ process. Hardly. Were recommendations approved and complied with? But are such procedures always adequate? We usually just obtain the bank reconciliations and test them. Two areas that you can look at now to improve are your cash receipts and cash disbursements processes. Process it using the clients system and compare the result with the expected output. Accounts Payable Assertion Objective Procedures Valuation or Allocation To determine if the amounts recorded for accounts payable have been recorded correctly. Here are 5 ways to improve them: 1. Multiple remittance addresses for the same vendor. AUDIT PROGRAM. Enter fictitious payables into the system. It is never too late to review your internal controls for cash disbursements. Petty Cash Funds are used for approved program disbursements. If there is a big difference between the actual figures and the budgeted figures, we need to enquire management about the reasons behind. Set-up a mail log of all remittance received. Auditing cash tends to be straightforward. 3. revenue (drawdowns from CDBG awards, cash contributions, proceeds from sales, other program income, etc. • A cash receipts journal.3 This journal documents chronologically when funds were received, in what amounts, and from what sources. • Purchases, Accounts Payable, and Cash Disbursements—This cycle includes purchasing goods and services, processing invoices, issuing checks, recording checks in the Cash Receipts by the Hudson Beach Café And Its Compliance with Its Permit Agreement With the Department of Parks and Recreation MH05-075A AUDIT REPORT IN BRIEF The audit determined whether the Riverside Beach Restaurant Corporation, doing business as Hudson Beach Café (the Café), had adequate internal controls over cash receipts, ANSWER: B. The Cash Fund Custodian is the person whom the cash ... HSC OP 50.26 Completion of Cash Receipts. Chart of Accounts General Ledger Cash Receipts Journal Cash Disbursements Journal Bank statements for audited year, plus last statement for previous year and first for current year. We performed a cash count on July 2, 2007 and examined reconciliations for the months of May, June and July 2007. Office of Audit Services. Cash disbursements for unrecorded liabilities and routine expenses (e.g., rent) when all expenditures must be vouchered prior to payment. ); and expenses (rent, wages, heat, telephone, etc.). We send confirmations and vouch the outstanding reconciling items to the subsequent month’s bank statement. Revenue, Accounts Receivable, and Cash Receipts—This cycle includes making deposits, processing cash receipts, recording receipts, and performing month-end reconciliations. Studying the internal controls over cash receipts and disbursements. 1. Todd E. Crouthamel can be reached at (215) 441.4600 or Email. deficiencies in the bank reconciliation process that were identified in prior audit reports. Review of last year's audit and internal control letter. Questions and Answers. Internal Control Over the Cash Disbursements. Recall the Parmalat and ZZZZ Best Carpet Cleaning frauds. Used to complete attached proof of The cash disbursements of the company should be made by check, electronic fund transfer and for minor items petty cash should be used.