Reflection On Auditing Cash Transaction

Jan 12: I started auditing cash transaction of a property management company located in Fresno. There were petty cash, operating cash account, saving account, and reserve account. To investigate fraud or material misstatement, I firstly checked to verify the balance of each cash account and the balance of each confirmation from the bank. I also examined client’s year-end balance of bank reconciliation and book cash balance for the end of the year. If the balance did not tie together, I created work notes regarding attention for further procedure.

Jan 13: Today I audited accounts receivable and accounts payable. First, I uploaded a year-end accounts receivable aging summary to the ePace program and then traced to total amounts of the accounts

There were tangible assets placed in service year in 2011 such as site improvements, buildings, and equipment. Loan fees and tax credit agency fees were intangible assets. All fixed assets depreciated over the useful lives under the straight-line method. I reviewed any gain or loss on disposal property and impairment of long-lived assets. I also audited long-term debts. I reviewed principal balance, loan’s terms and interest rate in the mortgage statements. I compared the balance of notes payable account with loan amortization schedules in order to identify any unexpected transactions. I checked any changes in loan agreements and uploaded loan confirmations from the bank and county of Fresno. Based on interest expense reasonable testing, client’s outstanding loan balance per confirm tied to the general ledger without any material

Client’s development fee confirmation from the related party had not received so I put open items list to follow up each week. This year, property management company located in Fresno did not have any cash or capital contribution and distribution so that it was easier to make adjustments to reconcile ending of partners’ capital account. I performed the audit of revenue and expense accounts today. I reviewed the balance of revenue and expense accounts. Operating expenses such as property management fees and repairs were below material misstatement so that I put waive tick mark. This year, I found that client’s financial transaction did not have any unusual income or expenses. I prepared financial statements based on audit work papers and gave to the manager for her second review. I spent about forty-eight hours of my first