Audit is the identification in the financialreporting of the enterprise any inconsistencies to the actual state of affairs and finding the reasons for such discrepancy in the enterprise accounting system. There are different types of audit, dealing with different types of business operations and different objects of analysis and verification. One such type is the audit of funds. About him and talk in our today's article.
Audit of funds is a fact checkavailability of money means at the disposal of the enterprise and the correctness of the display of their movement in the documents. Verifying the correctness of accounting for money and equivalents is critical to the enterprise. Still, since the accounting and audit of funds refers to the circulatory system of any enterprise - the money that forms its liquidity and act as a universal tool for the performance of economic activities.
Like any other type of audit, the audit of funds at the enterprise includes the verification of the company's funds by the following criteria:
Existence - the auditor should make sure,that the funds reflected in the documentation are actually at the disposal of the enterprise. To do this, the auditor recounts the cashier, and also looks at bank statements of the company.
Ownership - audit of fundsmust determine whether the firm has ownership of all money, or some of the money does not belong to the enterprise. For example, staff salaries in the cash register are still in the company, however, in fact, it is about to become the property of the company's employees.
Evaluation - the audit of funds should show,whether the enterprise's cash assets, as well as their equivalents, are correctly valued. If everything is clear with cash and money on accounts in the national currency, then the equivalents of the case are more complicated. Equivalents usually include currency values, banking metals, as well as short-term securities. The most difficult thing is to establish the real value of these assets on the day of inspection and, thus, to confirm or deny the correctness of the assessment of cash. Checking cash, although it seems at first glance fairly simple, can conceal a lot of surprises and problems for the auditor.
Audit of funds is carried out withthe use of various kinds of documents serving as confirmation of the performance of certain operations, as well as the availability of money at the disposal of the enterprise. Such documents are bank statements on the status of the company's accounts, orders (cash and cash) showing the movement of funds at the checkout, settlement documents with accountable employees that show the issuance and return of funds for various acquisitions, and other documents. Once verified original documents, you must check the correctness of the posting of the results on the accounts of accounting operations, and check the validity of their entry in the logs, the ledger and the accuracy of the display of the results in the financial statements. This allows you to track all stages of accounting for transactions with cash and in time to identify any kind of inconsistencies.
Like any other type of audit, the audit of cash(writing, withdrawal) in which the auditor gives his assessment of the state of accounting for money and expresses his positive or negative judgment depending on the seriousness (materiality or materiality) of the errors and errors identified during the audit.
As you can see, the audit of monetary funds differs little from other types of inspections, except for only a few moments. Successful checks to you !!!
