【正文】 h is fairly limited. ? pare the yearend cash balance to that of the prior year and also to previous months. ? to determine consistency with accounts receivable ? to evaluate the reasonableness of fluctuation throughout the year. ? An unusual fluctuation may reveal, for example, situations of cash misappropriation throughout the year. ? quickly scan bank reconciliations for any unusual items (for example, no outstanding cheques, no reconciling items, or large error corrections) 5. Substantive procedures (1) Existence ? Count the cash and bank confirmation ? A sally procedure ? Records ? Usually conducted at? ? Bank confirmation ? Provide evidence for yearend balances ? requested by client, sent directly to the auditors ? Who should be confirmed? ? Any other roles? ? charges ? Review of cutoff bank statements ? Review the bank reconciliations ? Lapping refers to the covering up of misappropriation 盜用 of cash receipts by applying later cash receipts to the accounts of customers whose payments were diverted 挪用 by the cashier. This is identified by verifying that the customers whose names appear on today’s bank deposit have been credited for the payment. ? Kiting refers to the practice of increasing bank balances by the deposit of uncollected cheques drawn on a bank account with a second bank and issuing cheques against these inflated balances. (2) Completeness ? The main audit focus with respect to this assertion will usually be reliance on the client’s internal control system. – segregation of inpatible responsibilities ? substantive processes： Verify pleteness of receipt and recording of cash. (3) Ownership ? Confirmation and physical count ? Review all significant contracts to ensure no significant restrictions are placed on cash: ? bond indentures ? loan covenants ? and grant agreements (4) Valuation ? Only for foreign currency ? Exchange rate (5) Disclosure ? Any restrictions are adequately disclosed in the notes to financial statements. ? Any internally appropriated cash should also be disclosed in the notes. ? A review of the minutes of the board of directors meetings should provide evidence of any amount of cash appropriated for specific use. Opening Balances 期初 余額 1. “Opening balances” means those account balances which exist at the beginning of the period. Opening balances are based upon the closing balances of the prior period and reflect the effects of: (a) Transactions of prior periods。 and (b) Accounting policies applied in the prior period. In an initial audit engagement 首次接受委托 , the auditor will not have previously obtained audit evidence supporting such opening balances. 2. Audit objectives of Opening balances: For initial audit engagements, the auditor should obtain sufficient appropriate audit evidence that: ? The opening balances do not contain misstatements that materially affect the current period’s financial statements。 and ? Appropriate accounting policies are consistently applied or changes in accounting policies have been properly accounted for and adequately presented and disclosed. 3. Audit Procedures (1) Consider whether opening balances reflect the application of appropriate accounting policies and that those policies are consistently applied in the current period’s financial statements. When there are any changes in the accounting policies or application thereof, the auditor would consider whether they are appropriate and properly accounted for and adequately presented and disclosed. (2) When the prior period’s financial statements were audited by another auditor, the current auditor may be able to obtain sufficient appropriate audit evidence regarding opening balances by: ? Reviewing the predecessor auditor’s working papers. ? In these circumstances, the current auditor would also consider the professional petence and independence of the predecessor auditor. ? If the prior period’s auditor’s report was modified, the auditor would pay particular attention in the current period to the matter which resulted in the modification. (3) When the prior period’s financial statements were not audited or when the auditor is not able to be satisfied by using the audit procedures, the auditor will need to perform other audit procedures: ? For current assets and liabilities some audit evidence can ordinarily be obtained as part of the current period’s audit procedures. ? For noncurrent assets and liabilities, such as fixed assets, investments and longterm debt, the auditor will ordinarily examine the accounting records and other information underlying the opening balances. 4. Audit Conclusions and Reporting ? If the opening balances contain misstatements which could materially affect the current period’s financial statements, ? The auditor would inform m