Basic Staff Training: Auditing Cash Receipts

Author: Robert K Minniti

Are you a staff accountant planning on performing an audit of cash receipts? Whether you are a new auditor or just need a refresher on this topic this course is for you. We will review steps for planning a cash receipts audit, testing internal controls over cash receipts, conducting analytical procedures and performing substantive testing. We will review important internal controls over cash transactions and discuss the risk of money laundering in an organization.

From an audit procedure standpoint this course will also focus on the techniques and documentation needs that a staff accountant needs to know. In addition, the course will offer practical advice to the staff accountant on conducting an audit of cash receipts.

Publication Date: January 2023

Topics Covered

• Cash Receipts: Planning the Audit
• Sampling
• Auditing Cash Receipts: Conducting Field Work
• Auditing Internal Controls for Cash Receipts
• Red Flags for Money Laundering

Learning Objectives

• Identify audit procedures for auditing cash receipts
• Recognize what would be least likely to impair an auditor's independence
• Recognize what starts with the transaction record and verifies there is a corresponding source document
• Describe what an auditor would expect when applying Benford's Law
• Recognize what would be considered a substantive test
• Identify what wouldn't be a common workpaper for an external audit of accounts receivable
• Identify the materiality threshold for fraud
• Recognize what is used to report cash transactions in excess of $10,000 to the IRS
• Differentiate which type of sampling gives all items an equal chance of being selected
• Identify the correct formula for the audit risk model
• Describe a substantive procedure
• Recognize what wouldn't be part of an audit trail review
• Identify what is not a step in laundering money

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None