internal audit checklist for cash

Verify that cash handling procedures are documented and communicated to all relevant staff.

Ensure that there is a clear segregation of duties in cash handling.

Confirm that cash counts are performed regularly by independent personnel.

Review the process for recording cash receipts to ensure accuracy and completeness.

Check that pre-numbered receipts are used and accounted for.

Ensure that all cash receipts are deposited daily and verified against bank deposit slips.

Examine the procedures for authorizing cash disbursements.

Verify that all cash disbursements are supported by appropriate documentation (invoices, receipts).

Check for approval signatures on checks and disbursement vouchers.

Review bank reconciliation statements for each bank account.

Ensure that reconciliations are performed regularly (monthly) and reviewed by management.

Confirm that any reconciling items are investigated and resolved promptly.

Assess the adequacy of cash flow forecasting processes.

Review policies regarding cash reserves and limits for cash on hand.

Verify that petty cash funds are properly maintained and reconciled.

Evaluate the effectiveness of internal controls over cash transactions.

Identify any weaknesses in the control environment and recommend improvements.

Ensure that access to cash and cash-related systems is restricted to authorized personnel only.

Check compliance with relevant laws and regulations regarding cash transactions.

Review reporting practices for cash-related activities to ensure transparency and accuracy.

Confirm that any discrepancies or irregularities are reported to management and addressed appropriately.

Assess whether staff responsible for cash handling receive regular training.

Verify that staff are aware of policies and procedures related to cash management.

Evaluate the effectiveness of training programs through staff assessments or feedback.

Ensure that there is a reliable audit trail for all cash transactions.

Check that electronic systems maintain logs of cash transactions and access.

Review the documentation supporting any adjustments or corrections made to cash records.

Document any findings and recommendations from the audit.

Establish a timeline for implementing corrective actions.

Schedule follow-up audits to ensure compliance with the recommended improvements.