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Cash Receipts and Related by I94xU31

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									This is the AuditNet Standard Risk Control Audit Matix which incorporates formats
used by many audit organizations in their documentation working papers. There are
format templates for risk control, audit procedures, questionnaires and checklists.
There is a blank workpaper and a report summary that can in used by audit
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developing audit work programs, checklists, questionnaires and matrices. The
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Audit Program Area: Cash Receipts and Related

                           AUDIT PROCEDURES

          General Audit Objectives:
          1.Effectiveness and efficiency
          2.Reliability of financial and operational records
          3.Compliance to laws and regulations
          4.Assets are safeguarded

          Note: See the APG Other for compliance steps
          associated with selected subject matters herein.

          The sections of the APG in the areas of cash and cash
          receipts are;
          A.Banking, bank reconciliations, investments and cash
          receipts
          B.Ticket sales
          A.BANKING, BANK RECONCILIATIONS,
          INVESTMENTS, AND TEST OF CASH RECEIPTS
          TRANSACTIONS.
          Specific Audit Objectives:
          -to ensure banking arrangements are per policy
          -to ensure bank reconciliations are performed
          accurately, completely and in a timely manner
          -to ensure that school’s invested funds are within policy
          guidelines and that investment records are accurate,
          complete and maintained in a timely manner

          -to ensure that cash receipts are accurate, complete,
          and deposited intact and in a timely manner and that
          cash receipts reports can be relied upon

          -to make a distinction, where applicable, between XYZ
          policy and State policy and note that distinction within
          the work papers and written comments and reports.

          1. Banking arrangements and bank reconciliation
          procedures;
          a.Obtain June 30 bank statement and monthly report
          b.Verify bank is approved depository and fully insured in
          compliance with XYZ Board Policy xxx
              (1) Verify title on bank statement is in compliance
              with State policy.
     (2) Review 6/30/09 bank reconciliation done by
     school to include confirming 6/30/09 bank balance.
     Note: receive electronic bank confirm from CPA’s,
     complete all necessary information, return back to
     CPA’s who will mail and receive completed bank
     confirms.
     (3) Verify deposits in transit to July bank
     statement
     (4) Verify outstanding checks to July bank
     statement
     (5) Obtain monthly reports (AKA Principal’s
     Report) and
              (a) Note receipts and expenditures
     (6) Inquire and observe if school has idle funds
     per XYZ Policy xx and ensure that all excess funds
     are invested.
     (7) Judgmentally investigate any irregularities
     (8) Comment on noncompliance per XYZ policy
     and State.
c.Verify there are no stale-dated checks on outstanding
checklist, i.e. dated no later than April;
(1) Verify bookkeeper attempted to notify payees to
cash checks
(2) Inquire whether stale-dated checks are voided and
reissued when possible
(3) Verify these unclaimed property checks have been
added to the Unclaimed Property List to be held for one
year and then reported to the State
(4) Verify if payee donates the money to the school
(5) Verify Unclaimed Property List for FY xxx turned
over to Finance by Feb 28
d.Write up PRC’s and brief School on findings,
distinguishing between XYZ policy and State.

2.Investments
a.Obtain investment information and ensure that all
investments are within the guidelines of policy (i.e.,
C/D’s)
b.Judgmentally verify investments purchased or sold
during the year
c.Judgmentally verify investments are properly recorded

d.Judgmentally calculate and agree interest earned to
interest recorded
e.Confirm June 30 investment balance(s) – see above
section regarding bank confirms.
f.Investigate irregularities to include liquidity issues
g.Verify principal and bookkeeper reviewed portfolio
before renewing investments
h.Verify that excess funds are invested.
i.Verify accounts are in approved depositories and fully
insured per XYZ Policy xx
j.Comment on noncompliance per XYZ policy and State.

k.Write up PRC’s and brief School on findings;
distinguishing between XYZ policy and State.

3.Safeguarding of activity accounts;
a.Observe how school safeguards assets
b.Verify school has a safe or a locked area
c.Verify procedures for cash handling both deposit and
pick-up
d.Comment on noncompliance per XYZ policy and
State.
e. Write up PRC’s and brief School on findings,
distinguishing between XYZ policy and State.

4.Test of transactions of cash receipts;
a.Obtain receipts for year. Note: interim testing should
preferably start prior to year-end.
b.Observe receipts filed sequentially
c.Verify receipts pre-numbered and in a safe location
d.Verify sequential list of receipts to see all receipts are
recorded and used in order
e.Verify no missing or duplicate receipts
f.Select a 1% random sample of receipts from the
system’s sequential list. Judgmentally increase the
sample size based upon testing results and/or other
factors. Note: this sample size was pre-approved by
the District Auditor and the external audit firm. Do
the following:
    (1) Print out random sample of receipts from
    system’s computer program
    (2) Verify date at top of Report of Monies
    Collected (RMC) is same day as deposit or within 3
    days per current policy.
    (3) Verify deposit is intact, no checks were
    cashed and no refunds or purchases made from
    cash receipts
    (4) Verify commission checks deposited timely
    and ensure no lapping
    (5) Verify deposit slips properly completed –
    checks listed separately
    (6) Verify if checks not listed, ensure calculator
    tape or copies attached
    (7) Verify receipt numbers on deposit slips
    (8) Verify deposit slips, RMCs and copies of
    receipts are bundled together
    (9) Verify receipts, RMCs and deposit match
    (10) Verify receipt # is listed at top of RMC
    (11) Verify account # is listed at top
    (12) Verify source is itemized
    (13) Verify checks are listed separately
   (14) Verify total of RMC is correct and column
   footed by bookkeeper
   (15) Verify RMC is properly authorized by teacher,
   sponsor and bookkeeper
   (16) Verify voided receipts properly defaced and
   authorized
   (17) Verify Non-sufficient Fund Checks (NSF) are
   safeguarded
   (18) Verify attempts made to collect on NSF checks

    (19) Verify principal authorized any write off of NSF
    checks
    (20) Investigate any irregularities
g.Comment on noncompliance per XYZ policy and State
(Note: State requires deposits within 5 business days,
thus current XYZ policy is more restrictive).

h.Write up PRC’s and brief school on findings,
distinguishing between XYZ policy and State.

5.Judgmentally review receipts for FY xxx to xxx by type
and in total and investigate unreasonable
increases/decreases

6.Complete other tests of cash
as deemed necessary

7.Write up PRC’s and brief the school on findings in
areas other than those designated by the PRC steps
above, again distinguishing between PRC’s that are not
in compliance to XYZ policy versus the State.
B.TICKET SALES
Specific Audit Objectives of Ticket Sales are:
-to ensure that they are properly controlled and
tracked
-to ensure that financial records can be relied upon

-to ensure that ticket sales proceeds are properly
accumulated and deposited in tact and in a timely
manner
-to ensure that related change funds are properly
utilized and accounted for
1.Obtain and verify Ticket Reports on file for both
athletic and social events, and do the following;
a.Verify from schedules all home games have ticket
reports
b.Verify from school records all social events have ticket
reports, i.e. prom, homecoming, dances
c.Judgmentally verify for completeness that beginning
and ending ticket stubs are attached to reports
d.Judgmentally verify for accuracy that calculations on
reports are correct
e.Judgmentally agree receipts collected to receipts
posted to records
f.Judgmentally verify that no disbursements made from
cash receipts, i.e. payments to officials
g.Verify over/under amounts have reasonable
explanation and differences are properly disposed of

h.Judgmentally verify receipt numbers on reports
i.Judgmentally verify ticket reports properly signed
j.Verify timely depositing of receipts; current XYZ policy
within 3 days (i.e., check if XYZ policy has changed)

k.Investigate any irregularities
l.Comment on noncompliance per XYZ policy and State
(Note: the State requires deposits within 5 business
days, thus current XYZ policy is more restrictive).


2.Inquire and observe whether Ticket Control Sheets
are on file/logged and do the following;
a.Inquire and observe to the extent deemed necessary
as to social as well as athletic tickets were pre-
numbered
b.Inquire and observe to the extent deemed necessary
as to all tickets properly posted on sheet
c.Inquire and observe to the extent deemed necessary
as to inventory taken of tickets on hand
d.Inquire as to missing tickets
e.Inquire as to the proper destruction of tickets;
              (1) date destroyed
              (2) signature of person who destroyed the
              tickets
              (3) persons witnessing signature
f. Inquire and observe to the extent deemed necessary
as to ticket control sheets signed by teacher(s) and
principal
g.Investigate irregularities
h.Comment on noncompliance

3.Inquire and observe that Cash Change Funds are
  properly posted, noting that;
a.Cash change is receipted separately into records after
the event
b.Athletic Cash Change Funds are closed at end of the
athletic season
c.Tickets and cash change are in a secure location
d.Investigate irregularities
e.Comment on noncompliance
4.Judgementally compare athletic gate receipts FY xx to
xx and investigate unreasonable increases or
decreases

5.Complete other tests of ticket
reports as deemed necessary

6. Write up PRC’s and brief the school on the findings.
                                                           Auditor
CONTROL OBJECTIVES (IF NONE THEN DELETE COLUMN)   WP Ref   Initials
Time      Date     Date           Checked
Spent   Expected Finished Remarks   By:
AREA:

   Process   Control Objective   Risk
                         Assertion                            Documentation W/P
Control Considerations   E,A,C,V,P   Description of control         Ref.
Do controls meet objective?    Test     Testing exceptions noted?
          Yes/No              W/P Ref            Yes/No
Resolution / remediation/ comments
               W/P Ref
Audit Program


Audit Procedure   Control Objective
                                                Workpaper   Performed     Date
Risk if Objective Not Met   Control Technique   Reference       By      Expected
  Date      Budget   Actual   Document
Completed   Hours    Hours    Reference   Source   Reviewed By
Remarks/Comments
       Audit Program Area

Global Audit Procedure      Control Objective Risks Control     Control      KeyControl? Frequency
Ref No,                                             Activity   Description
                                                    Number
Owner Exceptions Type   Document    Mapping to
                        Reference   Standards
AREA:



   Process   Control Objective   Risk
                         Assertion                            Documentation W/P
Control Considerations   E,A,C,V,P   Description of control         Ref.
                               Testing
Do controls meet
                             exceptions
   objective?
                    Test       noted?     Resolution / remediation/ comments
    Yes/No
                   W/P Ref     Yes/No                    W/P Ref
                              Client Name
                      Internal Control Framework

          Date Completed:
          Completed By:
          Reviewed By:

          Question                                                  Yes No* Comments /Description




              To the best of my knowledge, the answers and comments noted above are accu



          Name and Title of Person Completing Form (please print)                            Name and Title of Department Dire


* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                       Questionnaire Template
                   Signature of Person Completing Form                                                Signature of Department


                            7/27/2012
                          Date Form Completed                                                     Date of Department Directo




* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                       Questionnaire Template
                           Employee Responsible for Task




s noted above are accurate and reflect the current



Name and Title of Department Director (please print)


            * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
            or is to be performed.                       Questionnaire Template
   Signature of Department Director



Date of Department Director's Signature




      * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
      or is to be performed.                       Questionnaire Template
Key Control ID   Key Control Description   Control Type
Frequency   Annual Sample   Interim Sample Rollforward Sample
Interim Testing   Rollforward Testing
  Procedures          Procedures
Risk
            Financial Statement Assertions
(1. Completeness, 2. Existence/Occurrence, 3. Valuation,
           4. Rights & Obligations, and/or 5.
                Presentation/Disclosure)                   Potential Impact
Probability of Occurrence   Fraud Potential   Risk ID
Control Reference   Control
Who Performs   Frequency   Control Type
Prevent/Detect   Control ID
Key Control ID   Conclusion   Finding Description
Management Assesment   Testing Impact
Control Reference   Finding
Severity   Management Assesment   Remediation Plan
Remediation Date   Owner   Remediated?
Auditor Notes   Finding
Control Reference   Observation
Recommendation   Owner   Remediated?
Rec. ID
Risk   Financial Statement Assertions
Control ID   Control   Who Performs   Frequency
Control Type   Prevent/Detect
Key Control ID   Key Control Description   Who Performs
Frequency   Control Type   Prevent/ Detect
Walkthrough
Procedures    Walkthrough Results   Workpaper Reference
Control Verified?   Related Finding ID   Preparer Sign-off
Reviewer Sign-off
Finding Ref #   Control Testing   Finding
Management Response & Treatment

								
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