Question

Write down general cash transaction related audit objectives

Answer 1

Answer:

Transaction-relatedaudit objective & key internal controls1. recorded cash receipts are for funds actually received by the company (occurrence). separation of duties between handling cash and record keeping. independent reconciliation of bank accounts.2. cash received is recorded in the cash receipts journal (completeness). separation of duties between handling cash and record keeping. use of remittance advices or a prelisting of cash. immediate endorsement of incoming checks. internal verification of the recording of cash receipts. regular monthly statements to customers.3. cash receipts are deposited and recorded at the amounts received (accuracy). same as 2 above. approval of cash discounts. regular reconciliation of bank accounts. batch totals are compared with computer summary reports.4. cash receipts are properly included in the accounts receivable master file and are correctly summarized (posting and summarization). regular monthly statements to customers. internal verification of accounts receivable master file contents.comparison of accounts receivable master file or trial balance totals with general ledger balance.5. cash receipts transactions are properly classified (classification). use of adequate chart of accounts. internal review and verification.6. cash receipts are recorded on the correct dates (timing). procedure requiring recording of cash receipts on a daily basis. internal verification