Performing Audit Tests of Balances (In-Person and Remotely)—Part 2, Auditing Cash

Date: 1/8/2025
Time: 12:00 PM - 2:00 PM EST
CPE Credit: 2 hours

Learning “how” to audit cash is mainly learning “when” to audit cash and to “what extent” cash auditing procedures should be applied. The cause of much over-auditing on many engagements, the amount of audit work necessary depends on risk of material misstatement (RMM) evaluations at both the financial statement and classification (assertion) levels. For example, when RMM is low at the financial statement and assertions level for cash, few substantive procedures may be necessary. Substantive procedures may, in these circumstances, consist almost entirely of analytical procedures.

Topics Covered

• Understanding the maximum required procedures for auditing cash
• Learning how to perform only the procedures that are required based on the applicable assessed levels of RMM

Learning Objectives:

• Understand the basic procedures for auditing cash
• Understand the affects of assessed levels of risk of material misstatement on cash auditing procedures
• Learn ways to audit cash more efficiently
• Design and prepare the most efficient documentation of cash auditing procedures