Posted: September 13th, 2017

Review of the Current Assets

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Describe a minimum of 3 different bank accounts that a company could utilize.
What are the relevant financial statement assertions surrounding cash and cash equivalents and describe why they are important?
Define the types of internal controls that would be tested for the cash account, and give details or describe any specific tests that you might perform to ensure a thorough audit. Provide an audit plan for the cash accounts using each of the following audit steps in outline form with bullet points:
Step 1: Understanding your client and the industry
Step 2: Understanding and testing the internal controls and processes
Step 3: Gathering your evidence
Step 4: Expanding scope if necessary
Step 5: Testing

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