Скачать или смотреть Auditing Procedures Related to Cash Fraud | CPA Exam | Auditing Course

In this session, we cover auditing procedures related to fraud.

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Introduction (0:00-1:22): The video focuses on auditing cash with a fraud perspective, especially when fraud is suspected. It builds upon previous discussions of the cash cycle, internal controls like bank reconciliation, bank confirmations, and cutoff statements.

Fraud Risk with Cash (2:22-4:20): Cash is susceptible to fraud because it is liquid, easily misappropriated and concealed, and hard to trace. Auditors must be vigilant in evaluating fraud risks related to cash.

Expanding Audit Procedures (4:33-6:30): Weak internal controls, poor segregation of duties, manual processes, missing documentation, high employee turnover, and management overriding the system are factors that indicate the need for expanded audit procedures.

Tools for Auditing Cash Fraud (6:30-7:33): The video explains three tools: extended tests of bank reconciliation, proof of cash, and tests of interbank transfers (evaluating timing of fund transfers to detect kiting).

Extended Test of Bank Reconciliation (8:34-11:15): This involves a deeper look into bank reconciliations, verifying the legitimacy of reconciling items over multiple periods.

Proof of Cash (12:02-16:42): This test compares what’s recorded in the books versus what actually happened in the bank statement over a period of time.

Interbank Transfer and Kiting (16:45-21:23): Kiting is when money is moved between banks and the transaction's timing isn't properly recorded, creating extra cash that doesn't really exist.

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