Audit Program

CASH IN BANK – Local Currency

Agency: Prepared:
Date
Audit Reviewed:
Period
Date
Risk Statements:

1. The Cash in Bank – Local Currency (CIB-LC) account balance appearing in the financial statements
(FS) may not be equal with that in the General Ledger balance as of FS date.
2. The account balance as recorded in the books may not be accurate.
3. The CIB-LC may not be existing.
4. The CIB-LC may not be is properly and consistently classified, disclosed and presented in the
FS.

Audit Objectives and Assertions:

1. To determine if the CIB-LC account balance appearing in the financial statements (FS) is equal with
that in the General Ledger balance as of FS date.
2. To ascertain the accuracy of the general ledger account and the amount reflected in the financial
statements. (Accuracy and Completeness)
3. To ascertain that all cash recorded actually exist. (Existence)
4. To determine whether the account is properly and consistently classified and disclosed in the
financial statements (FS) and that disclosures are appropriate (Presentation and Disclosure)

TIME
Audit Procedures W.P. Done Estimated Actual Remarks
Ref. by From To From To
1. Accuracy and Completeness

1.1 Trace beginning balance to prior

year’s (PY’s) audit working
paper/ending balance of PY’s FS and
General Ledger (GL).

1.2 Trace debit and credit postings in the

GL to the Cash Receipts
Journal/Check Disbursements
Journal/Cash Disbursement Journal
to the Report of Collections and
Deposits/ Report Checks
Issued/Report of Cash Disbursement.

1.3 Foot the debit and credit entries in

the GL and establish the balance.
 TIME
Audit Procedures W.P. Done Estimated Actual Remarks
Ref. by From To From To
1.4 Compare the GL balance with the
balance in the TB or FS.

1.5 Prepare proof of balance working

paper / top schedule.

1.6 Investigate discrepancies, if any.

1.7 Trace entries in the Checks

Disbursements Journal in the Report
of Checks Issued / duplicate copies of
checks and the underlying DVs.
Verify footings.

1.8 Check entries in the Cash Receipts

Journal against the Treasurer’s
Report Collections and Deposits.
Verify footings, and examine
validated deposit slips for
authenticity and correctness of
amount.

1.9 Document results of the audit

working paper and take note of
deficiencies

1.10 Prepare and issue AOM, if necessary

2. Existence

2.1 Obtain or prepare listings of all bank

accounts.

2.2 Prepare and send bank confirmation

letters (to be signed by management).

2.3 Obtain bank reconciliation statements

from management (if none, prepare
bank reconciliation statements).

2.4 Verify bank reconciliation statements

and note differences. (with separate
Audit Program)

2.5 Prepare and issue AOM, if necessary.

 TIME
Audit Procedures W.P. Done Estimated Actual Remarks
Ref. by From To From To

3. Presentation and Disclosure

3.1 Check statement presentation.

3.1.1 Determine if the account is

properly identified and
classified in the F/S.

3.1.2 Determine the appropriateness

and completeness of
disclosures made in the notes
to F/S.

3.2 Prepare and issue AOM, if necessary.