Cash tends to be one of the first areas assigned to new auditors, as there is typically little complexity and subjectivity involved. In addition, persuasive audit evidence from a third-party is generally available. However, research shows that around 80% of asset misappropriation relates to cash. Therefore, the audit of accounts and classes of disclosures related to cash and cash equivalents does tend to carry some level of risk of material misstatement. This audit CPE course demonstrates how the approach to auditing different cash accounts may vary and how to strengthen inquiry which is an important audit procedure in this area.
Learning Objectives
Upon completion of this course participants will be able to:
Recall how to design and perform standard audit procedures related to cash and cash equivalents;
List typical presentation and disclosure issues related to cash; and
Explain how to evaluate audit evidence associated with this typically starting audit area, including evidence obtained through inquiry.
