Auditing and Assurance revision question and answer

Smart Telecom is one of the leading companies dealing with various tele-communication services, wireless networking and internet related services. It receives huge collection of cash daily from its customer on various accounts. Everything looked well, until one day it was noticed that large amount was missing in the bank account. In fact, that said amount was not credited in the bank account at all and it was missing since last few years. When the case was revealed, probably it was too late and all the said money was lost.
Considering the above case, what are the likely documents you would like to examine as an auditor of the company?
Answer
According to the case given in question, the following mention document should be checked as an auditor:
 Cash receipt register
 Security arrangement in the counter area.
 Procedures followed to deposit the amount in the bank
 Bank account opening procedure
 Special arrangements with bank for transferring funds, if any
 Bank reconciliation statement
 Duty rotation of the personnel, directly handling cash collection
 Reporting arrangement to central office
 Fidelity Insurance etc.

(Visited 5 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published.