Audit of funds: just about the complex

Audit is the identification in the financial statements of the enterprise of any inconsistencies in the actual state of affairs and finding the reasons for this discrepancy in the enterprise accounting system. There are different types of audit, dealing with different types of business operations and different objects of analysis and verification. One such type is the audit of funds. About him and talk in our today's article.

An audit of funds is a check of the fact of the availability of funds at the disposal of the enterprise and the correctness of the display of their movement in the documents. Verifying the correctness of accounting for money and equivalents is critical to the enterprise. Still, since the accounting and audit of funds refers to the circulatory system of any enterprise - the money that forms its liquidity and act as a universal tool for the performance of economic activities.

Like any other type of audit, the audit of funds at the enterprise includes the verification of the company's funds by the following criteria:

Existence - the auditor must make sure that the funds displayed in the documentation are actually at the disposal of the enterprise. To do this, the auditor recounts the cashier, and also looks at bank statements of the company.

Ownership - an audit of funds must determine whether the firm has all the money to own the property, or some of the money does not belong to the enterprise. For example, staff salaries at the cash register are still in the company, however, in fact it is about to become the property of the company's employees.

Evaluation - the audit of funds should show whether the cash assets of the enterprise, as well as their equivalents, are correctly valued. If everything is clear with the cash and money on the accounts in the national currency, then the equivalents of the case are more complicated. Equivalents usually include currency values, banking metals, as well as short-term securities. The most difficult thing is to establish the real value of these assets on the day of inspection and, thus, to confirm or deny the correctness of the assessment of cash. Checking cash, although it seems at first glance quite simple, can conceal a lot of surprises and problems for the auditor.

The audit of funds is carried out using a variety of documents that serve as evidence of the performance of certain transactions, as well as the availability of money at the disposal of the enterprise. Such documents are bank statements on the status of the company's accounts, orders (outgoing and incoming) showing the movement of funds at the checkout, settlement documents with accountable employees that show the issuance and return of funds for various acquisitions, and other documents. After the primary documents have been checked , it is necessary to check the correctness of posting the results of transactions on accounting accounts, after which to check the correctness of their entry in the registration logs, the main book and the reliability of displaying the results in the financial statements of the enterprise. This allows you to trace all stages of accounting for transactions with cash and in time to identify any kind of inconsistencies.

Like any other type of audit, the audit of funds ends with the preparation of an audit report (letter, conclusion) in which the examiner gives his assessment of the state of accounting for money and expresses his positive or negative judgment depending on the seriousness (materiality or materiality) of the errors and errors identified At carrying out of check.
As you can see, the audit of monetary funds differs little from other types of inspections, except for only a few moments. Successful checks to you !!!