Audit of Cash Activity

Objectives:

To verify the accuracy of cash balances.

To identify and rectify any errors or irregularities in the cash accounts.

Scope:

Examination of cash accounts in the trial balance.

Reconciliation of the bank statement with the Cash Lead Sheet.

Verification of cash disbursements and receipts in the journals.

Confirmation of bank balances with external parties.

Procedures:

Additional Questions:

According the AICPA auditing standards, what are the necessary ingredients for audit evidence to be considered "appropriate"?

Which piece of evidence $($workpaper$)$ provides the most assurance about the cash balance? Why?

If the client refuses to make the journal entries you have outlined on the Cash Lead Sheet, and materiality is $$1,000$ for this client, would you conclude that Cash is fairly stated at the amount shown on the trial balance? Why or why not?