internal audit checklist for cash

Verify that cash handling policies are documented and accessible to all relevant employees.

Ensure that cash handling procedures include guidelines for cash receipts, disbursements, and deposits.

Review training records to confirm that employees handling cash have received proper training.

Confirm that all cash receipts are recorded in the accounting system promptly.

Check that cash receipts are reconciled to sales records or other supporting documentation.

Ensure that there is a segregation of duties between cash handling and record-keeping functions.

Review the approval process for cash disbursements to ensure proper authorization.

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

Ensure that disbursement records are reconciled with bank statements regularly.

Confirm that bank reconciliations are prepared monthly and reviewed by a supervisor.

Ensure that reconciling items are investigated and resolved in a timely manner.

Check for consistency between bank statements and accounting records.

Schedule regular surprise cash counts to verify cash on hand.

Document findings from cash counts and follow up on any discrepancies.

Ensure that cash counts are conducted by individuals independent of cash handling and record-keeping.

Review physical security measures for cash storage (safes, locked drawers).

Ensure that access to cash storage areas is restricted to authorized personnel only.

Confirm that a system is in place for tracking and monitoring cash transactions.

Verify compliance with relevant regulations and internal policies related to cash management.

Ensure that any incidents of cash shortages or fraud are reported and investigated.

Review audit trails and logs for cash transactions to ensure accountability.

Gather feedback from staff on cash handling processes and areas for improvement.

Assess the effectiveness of the current cash management policies and procedures.

Implement recommendations from previous audits and monitor their impact.