Loans, Bank and Cash: Audit Procedures

ACCA F8 考試：Loans, Bank and Cash: Audit Procedures

1. Loans (Received)

Obtain schedules of all loans, reconciling opening balances, movements in year and closing balances (agreeing to general ledger and financial statements).

Examine loan agreements noting:

term of the loan;

rate of interest (fixed or variable);

security given; and

repayment terms.

Confirm redemptions during the year by reference to:

authority (e.g. board minutes);

paid cheques and cash book entries;

the calculation of any discount or premium;

accrued interest paid; and

deletions in the register of holders of loans.

Verify new loans/debentures issued during the year by reference to:

trust deed;

authority;

receipt of monies in cash book and general ledger; and

entries in statutory records.

Obtain direct confirmation from lenders.

Scrutinise statutory books (if any) and confirm that they are correct regarding:

charges over assets; and

directors' interests in debentures.

Re-compute interest charge and interest accrual calculations.

Agree disclosure of long-term liabilities in accordance with financial reporting framework. For example:

secured loans excluding portion repayable within one year;

unsecured loans excluding portion repayable within one year;

summary of interest rates, repayment terms, covenants;

and

security given.

2. Bank Reconciliation*

Review any interim audit work carried out on the cash system to identify potential problems for the year-end work.

Confirm balance per the bank statement (e.g. to the bank report for audit purposes) and agree cash book balance to the general ledger.

Verify that the reconciliation casts (i.e. adds up) by reperforming the additions.

Audit adjusting items (e.g. interest charges).

Agree uncleared ("outstanding") lodgements and unpresented cheques to entries on the bank statement dated after the end of the reporting period.

Reconcile year-end closing balance from prior year's audited reconciliation via each bank reconciliation carried out.

Review each reconciliation during the year for unusual "balancing" items.

3. Petty Cash

Understand system of control over petty cash.

Carry out count of petty cash (in the presence of a client employee) and agree to the balance in the petty cash book, general ledger and financial statements.

If imprest system used, add up petty cash vouchers and agree total of cash and vouchers as being equal to the imprest balance.

At the end of the count return cash to the cashier and obtain signed certificate of monies returned.

Agree petty cash vouchers for appropriate authorisation and supporting receipts/documentation.

Review petty cash book for unusual items (i.e. items that are clearly not petty cash (e.g. "weekend" loans to directors) or items which should be paid through the main cashbook system (e.g. repairs to office equipment).