Petty Cash Audit Program - Excel

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Petty Cash Audit Program - Excel Powered By Docstoc
					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
organizations. AuditNet has prepared a monograph for guidance on preparing and
developing audit work programs, checklists, questionnaires and matrices. The
monograph is available to AuditNet subscribers. For more information go to
Audit Program for Petty Cash

Audit Procedure                                                  Control Objective
Create & Send Audit Notification Letter (3 to 4 weeks out) for
the function to be audited
Schedule and conduct pre-planning meeting with the
processes owner(s) to assist with the identification of audit
scope, objectives, and timing.
Gain an understanding of the area to be reviewed. Obtain and
review the following (if available):
1) Policies, procedures, and/or training manuals governing the
Payroll process
2) Organizational charts and key points of contact in the
Payroll function
3) Prior internal and external audit reports
4) List of financial systems and applications utilized
5) Sarbanes-Oxley documentation of controls and testing
results (if applicable)
Develop & Distribute an Audit Planning Memo (2 to 3 weeks
out) detailing the objectives, scope, and timing for the review.

Refine and finalize the audit program

                             Petty Cash
Understand and document (flow chart or narrative) the petty
cash process from start to finish. Verify documentation and
understanding with the petty cash custodian to ensure
Ensure formal policies and procedures exist to govern petty
cash processes and procedures. Such P&Ps should be
appropriately approved and communicated to all relevant
parties within the Department/Organization.
Test segregation of duties to ensure that no single person is
able to initiate, authorize, and/or record a transaction and hold
custody over assets (such as checks, cash, etc). Make sure
compensating controls exist for areas where such segregation
does not/can not exist (i.e. due to staff limitations, etc).
Ensure that petty cash funds are appropriately secured and
maintained in a locked cabinet/safe. Possession of keys
and/or security combinations to such cabinet/safe should be
restricted to appropriate parties. Ensure that safe
combinations and or key cylinders are changed when
appropriate (key is missing, personnel turnover, etc).
Ensure that the petty cash fund is reconciled periodically by the
petty cash custodian and that such reconciliations are
reviewed/approved by management or another independent
party. Trace such transactions through the accounting system
to ensure proper (accurate, timely, etc) accounting treatment.

Obtain all cash, receipts, and reimbursement requests on
hand. Reconcile the petty cash fund to the G/L and account
for any deviations (from G/L and/or from the authorized petty
cash balance). Cash plus receipts plus any Requests for
Disbursement plus any uncashed replenishment checks
should equal the total authorized fund balance at all times.

Ensure petty cash that they are appropriately secured and that
access is limited only to individuals with appropriate authority.
This includes blank check stock, manual checks, signature
plates, MICR, check printers, payroll records, etc. For items
such as check stock and signature plates, look for additional
controls such as control logs and chain-of-custody
documentation controls.
Ensure that petty cash processes are in compliance with
approved Petty Cash policies, noting the following:
 - Petty Cash establishment and authorized fund balance
 - Cash disbursement requirements and procedures
 - Limitations on types of disbursements (i.e. incidentals,
travel, parking, tolls, etc)
 - Limitations on amounts of disbursements
 - Fund reconciling and review requirements
 - Requests for fund reimbursement processes
 - Document retention and maintenance procedures
 - Disbursements and replenishment transactions are
appropriately coded and accounted for

Ensure that the petty cash fund balance is appropriate for the
size and quanity of reimbursement transactions. Excessive
replenishment requests may indicate a need for a larger Fund
balance while infrequent fund replenishment requests may
signal the need to reduce the fund balance size.

Ensure back-up functionality for petty cash processes and
functions are in place and well documented (i.e. cross-
functional training, etc)
Ensure Petty Cash Custodian has creditials (work experience,
education, training, etc) consistent with their job
responsibilities. Also ensure that background checks were
performed on all employees prior to employment and/or
subsequent to promotion.

                       Project Work Steps
Discuss audit findings with applicable management
Obtain management's action response to any risks/issues
identified throughout the audit
Create a draft report detailing the results of the audit,
management's responses, and any applicable
Have the final report reviewed and scrutinized for accuracy,
clarity, punctuation, spelling, grammar, etc by a party
independent of the audit in order to ensure high quality
Formally issue the report

                       Project Work Steps
Follow-Up with management to ensure that all risks identified
during the audit have been addressed consistent with the
Organization's risk tolerance levels and the wishes of Senior
Management and the Audit Committee. Track the timing and
resolution of each risk and action taken by management in
order to facilitate summary reporting to Senior Management
and/or the Audit Committee of the Board of Directors.
                                                Performed     Date
Risk if Objective Not Met   Control Technique       By      Expected
  Date      Budget   Actual   Document
Completed   Hours    Hours    Reference   Source   Reviewed By
       Audit Program Area

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

   Process   Control Objective   Risk
                         Assertion                            Documentation W/P
Control Considerations   E,A,C,V,P   Description of control         Ref.
Do controls meet
                    Test       noted?     Resolution / remediation/ comments
                   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
                   Signature of Person Completing Form                                                Signature of Department

                          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
                           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
   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
Finding Ref #   Control Testing   Finding
Management Response & Treatment

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