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Why would an auditor prepare a proof of cash?

The purpose of a proof of cash is to identify any discrepancies between the two sets of records. These discrepancies could be due to timing differences (like outstanding checks that have not yet cleared), errors, or fraud.

Why is cash verification important in auditing?

This provides independent, outside verification of the existence, ownership rights and valuation of the cash on the financial statements. It also ensures that the Board is adequately monitoring their assets as part of their internal control procedures. FAQ - Why is Cash Verification in the Audit Process Important? hoacpa.com wp-content uploads 2018/08 hoacpa.com wp-content uploads 2018/08

What is the auditors concern about cash?

Auditors are often concerned with the overstated cash because there might be an intention of overstating it to cover the misappropriation or theft of the money. Cash is the asset most prone to misstatements because it is the most liquid and can be transferred easily.

Why audit cash is important?

Audit Program Cash auditing is a complete or partial assessment of cash transactions that an auditor carries out within a set time frame. You may audit cash to ensure proper documentation of cash received or disbursed and to establish that the cash balance and deposits are accurate.

What is the general fund statement of revenues expenditures and changes in fund balance?

3.40 The governmental fund statement of revenues, expenditures, and changes in fund balances reports information about the inflows, outflows, and balances of current financial resources of each major governmental fund and for the nonmajor governmental funds in the aggregate. Governmental Funds Financial Statements wa.gov bars-gaap-manual reporting gov wa.gov bars-gaap-manual reporting gov

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