Audit Program Sample for Long Term Liabilities

2972 Words Sep 17th, 2011 12 Pages
CASH

Risks • Cash transactions may not be recorded accurately • Cash may not exist

Steps
1. Confirm selected bank accounts and special arrangements

Select bank accounts for confirmation in order to obtain a moderate to low level of assurance that the aforementioned audit objectives are achieved. Bank confirmations should be sent to all banking relationships to identify accounts not included in the general ledger.

Confirmation requests should be sent under our control and, second requests and, where warranted, third requests should be mailed when responses to confirmation requests have not been received within a reasonable time.

Consider sending a special inquiry letter to ascertain the existence of special
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Trace to supporting documentation as necessary; and (cut-off)

vi) investigate items such as, long outstanding items, dishonored checks and significant adjustments in the subsequent month, and record adjustments as necessary (accuracy and existence/occurrence).

e) review client 's bank reconciliation for review and approval by appropriate management and timely completion of reconciliation.

ACCOUNT RECEIVABLE

Risks ➢ The accounts receivable listing or individual balances may be inaccurate ➢ Accounts receivable balances may not exist ➢ Accounts receivable may not be collectible ➢ Bad debts write-offs may not be valid ➢ Sales transactions may be processed in the wrong period

Steps
1. Agree a detailed listing of accounts receivable to the summary

Obtain a detailed listing of accounts receivable balances (aged by customer, if possible) and:

a) trace totals to the comparative summary of accounts receivable balances;

b) select reconciling items in order to obtain a moderate to low level of assurance that accuracy is achieved and i) trace

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