Slideshow Audit 2 (BANK)

7/28/2019 Slideshow Audit 2 (BANK)

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NURULFARHANA BINTI JAAFAR

16PAT11F2005

SUMATHI A/P SOMU

16PAT11F2029

NAZIRUL ZAKWAN BIN MOHD ZUKI

16DAT09F2009


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Bank is a financial institution where the principal

activity is to act as a payment agent for customers

and to lend money. It is an institution for receiving,

storing, and lending money.


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Bank can provides cash, savings, and credit

cards. This is the most important role ofbanks in economic life.

By accepting deposits from and lend to theircustomers in need of funds, current bankmeans to raise funds for investment and amore productive use.


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i. Commercial banks

These banks get permission from the

government to handle your money.

ii. Savings banks

Originally these were only for

savings. People would save their money

there and the bank would loan out the

money to people wanting to buy a home.


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iii. Savings and loan associations

You save your money, they loan it out and

make money with it.iv. Credit unions

In order to belong to a credit union, you

need to be a member. Credit unions aremade up of people who work for the samecompany or kind of job, like teachers. Whenthis bank earns money, the members get a

share of it.


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Ensure bank statement balances aresame with the bank account in the

ledger, Ensure that the system of internal control

good or otherwise, and

Check the validity of the deposit andcollection of cash from the bank.


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Ensure that the book reflect the same cash

balance as the actual amount of cash in thebank, after considering reconciling item.

The independent reconciliation provides

unique opportunity for an internal verificationof cash receipt and disbursement

transaction.


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To compare the ending balance on the bank

reconciliation, deposit in transit, outstanding

checks and other reconciling item with prior-year

reconciliation

Using analytical procedures to test

the reasonableness of the cash

balance


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Auditor must determine that the client has made

adjustment.

Receipt of a bank

confirmation


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Receipt of a cut-off

bank statement

Test of the bank

reconciliation


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Ensure the total, namesand number of bankaccounts that clients

have

get relateddocuments eg; cash

book, cheque, for

purpose audit work

Get the bank balancecertificate on the datedirect from their bankand compare with the

bank statement

Make sure the bankrecon prepared each

month


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Test the matching ofbank statement withthe ledger of bank

balances

If gets differentnumbers, take that

number for thereports

Slideshow Audit 2 (BANK)

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