Reconciliation audit program

How to Audit Cash In this post, we will take a look at the following: Primary cash assertions Cash walkthrough Directional risk for cash Primary risks for cash Common cash control deficiencies Risk of material misstatement for cash Substantive procedures for cash Common cash work papers Primary Cash Assertions The primary relevant cash assertions are: Existence Completeness Rights Accuracy Cutoff Of these assertions, I believe existence, accuracy, and cutoff are most important.

Cash Walkthrough As we perform walkthroughs of cash, we normally look for ways that cash might be overstated though it can also be understated as well.

In performing cash walkthroughs, ask questions such as: Are timely bank reconciliations performed by competent personnel? Are all bank accounts reconciled? Are the bank reconciliations reviewed by a second person? Are all bank accounts on the general ledger? Are transactions appropriately cut off at period-end with no subsequent period transactions appearing in the current year? Is there appropriate segregation between persons handling cash, recording cash, making payments, and reconciling the bank statements What bank accounts were opened in the period?

What bank accounts were closed in the period? Are there any restrictions on the bank accounts? What persons are on the bank signature cards? What is the nature of each bank account e. Are there any cash equivalents e. Directional Risk for Cash What is directional risk? Share 3. Kenna says:. March 8, at pm. Charles Hall says:. March 10, at pm. Geo says:. March 19, at am. What internal controls need to be in place?

What are Balance Sheet Reconciliations? In fact, most accounting software packages have built-in functions to assist with performing reconciliations. Balance sheet reconciliations can highlight and assist with issues by: Detecting missing, duplicated, or untimely transactions.

Tracking various regulatory compliance items e. Join Our Conversation. Caution As a general rule, we recommend that you do not perform additionalconfiguration here. The wage type buckets that are delivered with thestandard system have been designed to meet the reporting requirements offederal and provincial tax authorities. Modification of these wagetype buckets may cause both reconciliation and reporting errors toarise.

We do, however, recommend that you review the assignment ofwage type buckets to wage type applications, so that you can familiarizeyourself with the reconciliation process in SAP Payroll.

Performing wage type assignment In this step, you perform the majority of the configuration that isnecessary to run the reconciliation process in SAP Payroll. Specifically, you assign all of the wage types in your system to theappropriate wage type bucket s , then define their validity periods.

Inthis final step of configuration, you would explicitly assign anyadditional wage types whose amounts should be reported in Box 14 of theT4 to wage type bucket B14 of wage type application T Performing report ID assignment As mentioned above under Step 1, wage type applications can be shared byseveral reports.

For this reason, every wage type application must beassigned to report IDs to define the report s that are permittedto process the wage types defined in wage type applications.

Example Wage type application T is used by the Year End Reporting utility; assuch, it should only be customized to meet the reportingrequirements of your enterprise at Year End. By assigning report ID RCONto wage type application T, you define that this wage typeapplication can also be used for reconciliation purposes.

Theseapplications can be either used as delivered or modified to meet thespecific reconciliation requirements of your enterprise. The tax wage types are grouped into tax reporting areas. However, using application THPN, the output of the report can beused to balance against the vendor accounts in Accounts Payable. To take full advantage of thefunctionality offered by this report, we recommend that you alwaysdefine the report selection options as narrowly as possible.

Tofurther restrict standard selection criteria before executing thisreport, choose Further selections from the top of the selectionscreen.

As explained above, the standard systemprovides several pre-configured wage type applications for the purposeof reconciliation. Example To perform reconciliation for all wage types posted to the FinancialAccounting component, specify wage type application FICO beforeexecuting the report.

Alternatively, you may select Specific wagetype s to perform ad-hoc reporting for wage types of your choosing. Overview list selection In this section, you define whether you are reconciling payroll resultswith tax results, FI results, or both.

The report displays a conciselist of the total amounts within the payroll results per applicable wagetype or wage type bucket, without the employees or pay period details. The following output options are available: Audit overview This overview represents a summary of total original earnings for agiven time interval or payroll period with a breakdown by taxcompany elements Business Number, work area.

This is due before July 1. Maintain supporting documentation for loan reconciliation processes and research performed. Respond to any inquiries made by the Director and other University officials pertaining to the reconciliation processes.

Provide regular updates to the Director of Financial Aid. Prepare historical reports for loan reconciliation processes and results. Works closely with staff throughout the loan reconciliation processes. Reviews and approves documentation for the monthly reviews prior to submission to auditors.