The document discusses auditing a bank and cash balances. It notes that cash and bank balances are liquid assets that are vulnerable to fraudulent activity or misappropriation of funds due to improper banking arrangements. The audit objectives are to ensure the completeness, accuracy, existence, right and obligations, occurrence, and proper presentation and disclosure of cash and bank balances on the financial statements in accordance with relevant standards and legislation.

1. Audit of Bank and Cash
Cash and bank balances
Liquid assests and include : notes and coins, bank current
accounts, bank deposit accounts.
Vulnerable assets because of its liquidity
Easily verified because they can be confirmed directly by
third parties or by physical counts.
Risks
Fraudulent activity or misappropriation of funds
Inappropriate or inadequate banking arrangement
resulting in financial loss or overdraft
Delays in making banking resulting in financial loss or
overdraft.
Audit Objective:
Completeness: to ensure that there is no unrecorded
cash. This means reconciling cash balances to records,
ensuring that proper sales cut off has been performed.
Accuracy: to ensure that amounts are correctly recorded
in the proper accounting period. This means that cut off
is correct.
Existence: to ensure the cash at a given date. Then
related evidence includes cash count.
Right and obligations: to ensure that the company has
right to the cash.
Occurance: to ensure that the cash belongs to the
company at the year end date. This means checking to
ensure no cash receipt are post dated.

2. Presentation and disclosures: to ensure that the cash
balance and related income statement entries are
correctly disclosed in the FS in accordance with
legislation and accounting standard.