A. The cash and bank balances represent all cash that are owned and on hand, in transit to or from financial institutions, or in financial institutions or held in custody by others for the account of the entity, and are properly recorded.
B. The cash and bank balances are properly described and classified, and adequate disclosures (including amounts restricted, committed or pledged) with respect to these amounts have been made. SUBSTANTIVE PROCEDURES 1. Overall Analytical Review 1.1 Compare the balance of each significant cash and cash equivalent account with the comparable balance for the preceding period. Investigate significant or unusual fluctuations.
1.2 Trace the opening balances from last year’s working paper file and initial them.
1.3 Compare the ratio of available cash to cash invested with the comparable ratio for the preceding period. Investigate significant or unusual fluctuations.
1.4 Relate changes in working capital and in debt balances to changes in cash balances and compare cash balances to seasonal fluctuations in the entity’s business. 2. Circularization 2.1 Have the client prepare "Standard Bank Confirmation" forms (Scope/Sample: __________) and confirmations of investments. (Scope/Sample: __________.)
2.2 Control mailing of first request. Retain copies.
2.3 Follow-up on confirmation requests and send second and third requests as necessary. (First reminder to be sent after 15 days and second reminder after 07 days of the first reminder with a copy to the President of the bank).
2.4 Obtain representation from client for opening and closing of bank accounts and confirm it, from the bank and cross refer it with the general representation letter list of bank accounts provided.
2.5 Obtain confirmations/certifications duly addressed to us and preferably directly provided to us with regard to cash balances held by employees etc., on behalf of the Company not physically counted by us. 3. Bank Balances 3.1