SUBSTANTIVE TEST OF OTHER FINANCIAL STATEMENT ACCOUNTS

Audit of Cash

Instructions:

Perform manual bank reconciliation to know the correct balance of cash that should be reported by
the Company. Reconcile the Balance per SAP records (Balance per book) and Balance per Bank
Statement (Metrobank account)

The accountant showed the auditor the Bank Statement sent by the Metrobank for the month of
December as shown below:

Beginning Balance, December 1, 2013 PhP 112,171.20

Date Remarks Deposit Withdrawal

December 1, 2013 Debit Advice 93,000.00 19,171.20

December 7, 2013 Deposit 190,000.00 209, 171.20

December 8, 2013 Encashment 25,000.00 184, 171.20

December 31, 2013 Interest 1,200.00 185, 371.20

December 31, 2013 Bank Charge 500.00 184,871.20

*** Nothing Follows ***

The deposit in the bank statement amounting to PhP 190,000.00 was traced to a deposit slip sent
by Solid Electrics on January 2014. Upon inquiry by the client, the deposit pertains to a partial
payment made by Solid Electrics regarding its amount due to the client.

Now you can perform the bank reconciliation by comparing the records per bank and the records per
SAP Business One (Balance per book).

Page 1
TO CHECK THE BALANCE PER BOOK OF THE COMPANY

- Go to Financials > Financial Reports > Accounting > General Ledger

- In the General Ledger – Selection Criteria, uncheck the Business Partner Box and check the
accounts box. Make sure that no accounts are marked with ‘x’.

- Change the level of accounts to 5.

- Mark ‘x’ the CA201 – Metrobank Account No. 9021

- For the posting date From field, enter 01.01.13 and To field 12.31.13 to show the transactions
for the whole fiscal year 2013 for this account.

- Then press Ok.

TO CHECK ALL THE CASH DEPOSITS

 Go to Banking >Deposits > Deposit

 Go to Find mode (Ctrl + F). Type an asterisk (*) on the Deposit No. field then press ‘Enter’

TO CHECK ALL THE CASH PAYMENTS

 Go to Banking >Outgoing Payments > Checks for Payment

 Go to Find mode (Ctrl + F). Type an asterisk (*) on the Internal ID field then press ‘Enter’

Page 2
Balance per Bank Ref. No. 184,871.20
Add: Deposits in Transit

Less: Outstanding Checks

Total adjustments
Adjusted Balance

Balance per Book 1,101,550.40

Add:

Less:
Total Adjustments
Adjusted Balance

Write below your findings and proposed adjusting entries:

Page 3
Criteria for grading:

100 90 80 70
Audit findings All necessary One or two Three or more Almost no audit
and adjusting audit findings audit findings audit findings findings
entries were explained cannot be cannot be determined and
and adjusting determined determined and no adjusting
entries fully adjusting adjusting entries
explained entries not fully entries cannot presented
explained be explained

Page 4