Valuation and petty-cash - cash and bank balances, Auditing

Valuation and Petty-cash - Cash and Bank Balances

Valuation

Till recently, valuation of banks and cash balances was got for granted till several financial institutions started to fail and this brought into query the value of balances maintained along with marginal banking institutions. Consequently as a further test, the auditor must establish such the balances are maintained in a reputable bank that is although a going relative.

Petty-cash

Petty-cash balances are generally not material. They are generally counted through the auditor although this is just because most organizations hold the view such a cash count is an integral part of auditing. As well as possible all cash balances should be counted at the similar time to prevent the possibility of substitution. Such count must be performed in the presence of the petty-cashier who has to be asked to sign the count-sheet, and the count-sheet should be signed also, dated through the auditor. The petty-cashier's presence is significant as the auditor could later be held liable for any shortages. This area is justified whenever the client maintains an impress system. The auditor should contain a certificate from the cashier.

Posted Date: 1/28/2013 12:31:16 AM | Location : United States







Related Discussions:- Valuation and petty-cash - cash and bank balances, Assignment Help, Ask Question on Valuation and petty-cash - cash and bank balances, Get Answer, Expert's Help, Valuation and petty-cash - cash and bank balances Discussions

Write discussion on Valuation and petty-cash - cash and bank balances
Your posts are moderated
Related Questions
Counter - Indications That the auditor has found indications of going related to non-applicability does not of itself justify instantly conclusion that the entity is not a goi

Initial Identification - Intangible Asset Subsequent to initial identification, an intangible asset is carried at: a) Cost, less any accumulated amortization and any accumu

The Accounting System ISA 400 Risk Assessment and Internal Control accounting system are the sequence of tasks and records of an entity by which transactions are procedure as a

Experts as a source of Audit Evidence Mostly the auditor's work on evidence obtained from along within the entity supported through confirmations from third parties will provi

Problem 10.42 An investment of $83 generates after-tax cash flows of $49 in Year 1, $67 in Year 2, and $131 in Year 3. The required rate of return is 20 percent. The net presen

Permanent Audit File The permanent audit file might involve, inter alia: a) A copy of the enterprise's statutes or statutory documents and other legal governing the enterpr

Develop a list of tasks the auditor should perform in planning this audit engagement, before any audit testing begins. Ans: It is in the interest of both client and auditor t

Advantages of Fixed Assets Register There are several advantages if the register properly maintained: a) There is an independent record of all fixed assets showing particul

You are auditing XYZ company for the year ended 12/31/2012 and will be expressing an opinion on their financial statements as of that date. You completed your field work on 1/21/13

Disclosure and Presentation - Audit Process IAS 16 provides exclusive disclosure requirements. Fixed assets should be split into appropriate classes and the following shoul