ABC Company

Test of Cash
Audit: December 31, 20X2

Procedure WP Reference, Initial & Date Completed

1. Obtain a lead schedule.
a. Tie prior-year amounts to the 10-k and current-year amounts to the
trial balance.
b. Foot the schedule.
c. Add an adjustment column and an audited balance column to the
schedule and include entries proposed in the steps below.
2. Obtain a bank reconciliation for the checking account.
a. Foot the schedule.
b. Tie bank balance to the cash confirmation and bank statement.

c. Tie the book balance to the lead schedule.

d. Tie deposits in transit and outstanding checks to detailed schedules.

3. Obtain a schedule of outstanding checks.

a. Use the cutoff bank statement to verify that outstanding checks
cleared after year end.
b. Verify that the last check written during the year is the last check
included on the outstanding check list.
c. Use the December and January bank statements to verify that all
checks that belong on the outstanding check list are included.

d. Total the amount of the outstanding checks and agree the total to
the bank reconciliation.

4. Obtain a list of deposits in transit (if any).

a. Agree deposits in transit to the bank statement noting that they
cleared the bank after year end.
b. Agree the total of deposits in transit to the cash receipts journal,
and verify that these amounts were received before year end.

5. Obtain a cash confirmation from the client.

a. Prepare a confirmation control if there is more than one
confirmation. a. N/A, C. Salinas 1/5/20X3
b. Send the confirmation to the bank. b. C. Salinas 1/5/20X3
c. Tie the cash balances on the confirmation to either the bank
reconciliation or to the lead schedule.
Some helpful notes:

Assume that the threshold for trivial amounts is $30. Thus, the cash on hand (on the
lead schedule) is clearly insignificant and needs no audit procedures.

For step 1a, assume the intern agreed the prior-year numbers to the 10-K and the
current-year numbers to the trial balance (TB). Just show the tickmarks for this work.

For step 3b, assume the intern viewed canceled checks and verified that the company
recorded the correct dates for the last check in 20X2 and the first check in 20X3.
ABC Company
Cash Lead Schedule
A: 12/31/20X2

Current Audited
Prior Year Year PAJEs Balance
Account
Checking 50,000 65,000
Savings 11,000 11,250
Cash on hand 20 25
Total $ 61,020 $ 76,275 $ - $ -
ABC Company
Bank Reconciliation
A: 12/31/20X2

Balance Per Bank 67,465

Less: Outstanding Checks (13,000)
Add: Deposits in Transit 10,500
Other: 35
Balance Per Books $ 65,000

Notes:
1. The outstanding checks are shown on the check register.
2. There is only one deposit in transit.
3. The $35 is due to a bank fee to reorder additional checks.
This is reflected in the bank statement, but not on the books.
Check Register-ABC Company

22-Dec 695 $ 500

23-Dec 696 100
24-Dec 697 50
25-Dec 698 5,550
26-Dec 699 4,010
27-Dec 700 1,000 j
29-Dec 701 500 Void
29-Dec 702 2,000 j
29-Dec 703 8,000 j
29-Dec 704 2,000 j
5-Jan 705 4,000
5-Jan 706 3,000
5-Jan 707 9,000
5-Jan 708 1,500
12-Jan 709 250
12-Jan 710 100

Notes:
j - these checks were outstanding as of 12/31/X2.
 Report Name: Completed Confirmation Report
Client Name: ABC Company
As of Date: 12/31/20X2

Client's Statement

We have provided to our accountants the following information as of the close of business on the Request Date below regarding our deposit and loan balances. Please confirm the accuracy of the
information, noting any exceptions to the information provided. If the balances have been left blank, please complete this form by furnishing the balance in the appropriate space below.† Although we do not
request nor expect you to conduct a comprehensive, detailed search of your records, if during the process of completing this confirmation additional information about other deposit and loan accounts we
may have with you comes to your attention, please include such information below.

At the close of business on the Request Date below, our records indicated the below deposit balances, and that we were also directly liable to the financial institution for loans at the close of business on
the stated Request Date as indicated below.

† Ordinarily, balances are intentionally left blank if they are not available at the time the form is prepared.

Client's Company Information Requestor Information

ABC Company Engagement Number ACG, LLP Carlos Salinas
1234 Williams Street 21379381 32nd Financial Avenue 580-555-1212
Columbia, ME 04623 Columbia, ME, 00002 csalinas@acg.com
United States United States

Authorized Signers
Name Job Title Phone Email
Simon Bolivar General Manager 570-555-5635 sbolivar@abc.com

Responder Information
Twenty-First National Bank Contact
P.O. Box 1 Cindy Green
Shoetown, ME 00002 ******

Client's Account Information

Type/Form Account ID Account Name

Financial/Asset 987345 Checking

Financial/Asset 987346 Savings

Confirmation Request
Status As of Date Currency Request ID Delivery Method
Completed 12/31/20X2 (mm/dd/yyyy) USD* m06va2g36v5s9s In-Network
Balance: $67,465.00
Interest: n/a
*USD - United States of America, Dollars

Confirmation Request
Status As of Date Currency Request ID Delivery Method
Completed 12/31/20X2 (mm/dd/yyyy) USD* m06va2g36v5s9r In-Network
Balance: $11,250.00
Interest: 0.5%
*USD - United States of America, Dollars

Questions / Comments
(01/22/20X3 10:46 AM) Cindy Green said - Balance as of 12/31/20X2
First National Bank Bank Statement for the Period Ending 12/31/20X2
1234 Williams Street Note:
Columbia, ME 04623 This is a supporting schedule. It doesn't go in the workpapers and has no tickmarks.

Acct. # 987345

ABC Company
999 Ash Street
Columbia, ME 04623

Beginning Balance, November 30, 20X2 $ 52,060.00

Deposits 51,850.00
Withdrawals 36,410.00
Fees 35.00
Ending Balance, December 31, 20X2 $ 67,465.00

Deposits Checks & Other Withdrawals

12/1 $ 1,250.00 688 $ 2,500.00

12/3 5,000.00 689 2,600.00
12/8 8,000.00 690 1,600.00
12/11 6,500.00 691 7,500.00
12/15 9,100.00 692 6,800.00
12/17 2,500.00 693 3,000.00
12/19 6,400.00 694 2,200.00
12/23 9,900.00 695 500.00
12/28 3,200.00 696 100.00
$ 51,850.00 697 50.00
698 5,550.00
699 4,010.00
$ 36,410.00
First National Bank Cut-off Bank Statement - 1/15/20X3
1234 Williams Street Note:
Columbia, ME 04623 This is a supporting schedule. It doesn't go in the workpapers and has no tickmarks.

Acct. # 987345

ABC Company
999 Ash Street
Columbia, ME 04623

Beginning Balance, December 31, 20X2 $ 67,465.00

Deposits 22,000.00
Withdrawals 30,500.00
Fees -
Ending Balance, January 15, 20X3 $ 58,965.00

Deposits Checks & Other Withdrawals

1/2 $ 10,500.00 700 $ 1,000.00

1/5 5,000.00 702 2,000.00
1/8 6,500.00 703 8,000.00
$ 22,000.00 704 2,000.00
705 4,000.00
706 3,000.00
707 9,000.00
708 1,500.00
$ 30,500.00
Cash Receipts Journal

Date Note:
31-Dec Sacaba Corp $ 1,000 Items on this page are support for the workpapers. This tab doesn't go in the
workpapers and has no tickmarks.
31-Dec Potosi Company 2,000
31-Dec Cochabamba, Inc 1,500
31-Dec Tupiza Corp 3,500
31-Dec El Alto, Inc 250
31-Dec La Paz Company 1,350
31-Dec Santa Cruz Co 900
$ 10,500

First National Bank

Deposit Slip

12/31/20X2 $10,500

Deposits made after 3 pm will not be deposited in account

FNB
until the next business day. Received
12/31/X2
1st Nat'l Bank
Signoff Block
C-1
NN, 10/15/20X3

PBC
Prepared by client

Example tickmarks & references

r

R
P
PY

j
C-3
TB

Example legend
Ticmark Legend
r - footed

R--recalculated . . .

P--agreed to . . .

A - We verified . . .

PY - agreed to prior-year workpapers

Tickmark carry-down

Tickmark carry-across