Answer all the following Question

Refer to Telstra Annual Report 2020

7. Obtain a schedule of bank transfers covering a selected number of days before and after period end and perform the following procedures:

a. review supporting documentation to ensure transfers are recorded in the correct accounting period; and

b. where transfers are between related entities, ensure that both sides of these transfers are recorded on the same day in the accounting records. Cross reference any such transfers.

8. Consider whether cash funds on hand at year end should be counted

9. Complete the following in regards to counting cash on hand

a. Obtain a list of all locations at which cash is held and:

i. compare to prior period, and obtain explanations for any additions/deletions; and

ii. discuss business arrangements with the client to ensure all locations are recorded on the list.

b. For a sample of locations at which cash is held (e.g. from sales receipts), perform a cash count on a surprise basis and:

i. ensure the custodian is present throughout the count procedure;

ii. count the cash and make a list of coins, notes and un-deposited cheques (if any) making up the balance (at no time should any member/s of the audit team be left alone during this procedure);

iii. ensure that all un-deposited cheques are payable to the entity;

iv. agree the total of cash counted to supporting documentation (e.g. sales records);

v. obtain a signed receipt from the custodian as evidence the cash was returned intact (e.g. Cash funds of $X were counted in my presence and returned intact. Signed .....); and

vi. trace cash counted to deposit slips, and subsequent bank statements, and investigate any cheques deposited that were subsequently dishonoured by the financial institution.

Conclusion