TABLE OF CONTENTS

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Chapter I
INTRODUCTION

Rationale 1
Legal Bases 1
Scope 2
Definition and Objectives of Cash Examination 2

Chapter II
LAWS AND RULES RELEVANT IN CASH EXAMINATION

Responsibility 4
Accountability 5
Liability 6
Collections 7
Remittances/Deposits 9
Dishonored Checks 10
Disbursements 11
Cash Advances 12
Seizure of Office by Auditor 13
Retention of Money for Satisfaction of Indebtedness to Government 13
Constructive Distraint of Property of Accountable Officer 13

Chapter III
GUIDELINES

Authority 15
Planning 15
Preparation 15
Auditor’s Conduct and Behaviour 16
Timing the Examination 16
Frequency of Cash Examination 16
Simultaneous Cash Count 17
Accountable Officer’s Presence During the Count 17
Sealing of Vault, Safe or Other Cash Receptacles 17
Accountable Officer’s Cashbook/CRR/CDRCkDR or its equivalent 18
Auditor’s Review of Transactions 19
Auditor’s Certificate on the Cashbook/CRR/CDR or its equivalent 19
Prohibition of Incomplete Examination 20
Audit Work Papers 20
Cash Examination Report 20
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Chapter IV
PROCEDURES AND TECHNIQUES
Common Procedures and Techniques 22
Specific Procedures and Techniques 24
A. Collecting Officer 24
B. Bank Cashier/Teller/ATM Teller 26
C. Disbursing Officer 27
Reconciliation Statement of Depository Accounts 28
Cash Shortage 29
Seizure of Office by Auditor 29
Constructive Distraint 30
Prosecution of the AO 32
Cash Overage 33
Indemnity From Fidelity Fund 33

Appendix

1. Illustrative Accounting Entries

Annexes

A. Treasury Circular No. 02-2009 – Revised Omnibus Regulations Governing the

Fidelity Bonding of Accountable Public Officers
B. Notice of Dishonor
C. COA Circular No. 97-002 dated February 10, 1997 – Restatement with
amendments of the rules and regulations on the granting, utilization and
liquidation of cash advances provided for under COA Circular No. 90-331 dated
May 3, 1990
D. COA Circular No. 2006-005 dated July 13, 2006 – Amendment to Item 7.1 of
COA Circular No. 72-002 dated February 10, 1997 on the granting, utilization
and liquidation of cash advances.
E. Report of Cash Examination [General Form No. 74(A)]
F. Internal Control Questionnaire
G. Reconciliation Statement of Accountability
H. Statement of Accountability for Accountable Forms With Money Value
I. Statement of Accountability for Accountable Forms Without Money Value
J. ATM Cash Count Sheet
K. Bank Reconciliation Statement
L. Letter of Demand
M. Withholding Order
N. Warrant of Constructive Distraint of Personal Property
O. Receipt for Goods, Articles and Things Seized under Authority of Section 47,
P.D. 1445, otherwise known as the Government Auditing Code of the Philippines
P. Request for Issuance of Hold Departure Order
Q. Joint Affidavit