Methods to improve the audit process of bank deposits

Bank deposit confirmation is a traditional method of bank deposit audit, and it is also the main means to prove the existence and ownership of bank deposits. In order to improve the quality of bank deposit audit and control the audit risk, the following aspects should be paid attention to in the process of bank deposit audit:

1. Auditors must obtain the bank statement of the audited entity and fill in the bank confirmation letter according to the deposit balance on the audit base date of the statement.

2. For the bank accounts opened or cancelled in this accounting period, it is necessary to obtain relevant information and send a letter together, especially to the original account opening bank of the cancellation account, to confirm whether there is any unrecorded loan.

3. The bank confirmation letter should be sent and received directly by the auditor.

4. For enterprises with more bank accounts, it is necessary to understand the reasons for more accounts and guard against other possible audit risks. The traditional bank deposit audit only pays attention to the ending balance of bank deposits, but not enough attention to the running water of bank deposits. In practice, especially some enterprises with large capital flow may have certain risks. In order to control the risk of misappropriation of funds, it is necessary to check the flow of funds and look for the receipt and payment of funds that have not been recorded. Pay attention to the following aspects:

1. Obtain all bank statements of the current period, and determine the lower limit of the amount to be checked according to the audit importance level and professional judgment.

2. Use the deposit journal to check the capital flow above the limit. If there is no open account for the receipt and payment of unrecorded funds, it will definitely happen to both borrowers and borrowers. Therefore, in order to reduce the inspection workload, you can only check the credit amount in the journal.

3. If you find that the funds are not accounted for, you should carefully find out the reasons. The possible reasons mainly include the audited entity lending a bank account, the income not being recorded, and the misappropriation of funds.

(1) Lending bank accounts is common in small enterprises and enterprises in special industries, such as construction. In this case, there is usually a fund income first, and then a fund expenditure on a similar date, with the same amount, which often appears as an integer. In this case, it is necessary to further trace the source and destination of funds, and if necessary, it can be confirmed by letter. You need to check the relevant sales contract to find out whether it belongs to the lending account or whether the income is not recorded.

(2) It is more common that income is not recorded in the accounts in enterprises with tax avoidance needs. In this case, there is usually a capital gain on the statement, and then it is transferred out at one time or several times. In this case, the audit strategy is basically the same as the previous one.

(3) Misappropriation of funds is more common in enterprises with large capital stock and flow and imperfect internal control. Generally, a sum of money is paid first on the statement, and then transferred back in one lump sum or several times. Payment can be made in cash or to other units such as the securities business department. If auditors find this situation, they should not only take further tracing measures, but also report the situation to the enterprise executives when necessary according to the situation. For the audit of time deposits, we should pay enough attention to controlling risks, paying special attention to the following aspects:

1. Obtain the original deposit certificate, and the copy cannot be replaced. Because there may be some transactions related to certificates of deposit, it is difficult to find them on the copy.

(1) The term of time deposit certificate spans the audit benchmark date. The audited entity shall first copy the time deposit certificate, and then withdraw cash in advance before the expiration of the time deposit certificate, falsely increase income or misappropriate monetary funds to engage in other illegal businesses.

(2) Time certificates of deposit are used as collateral for pledged loans. Copy of deposit certificate at the bottom, inflating income or misappropriating monetary funds obtained from pledged loans, and engaging in other illegal businesses.

(3) endorsement and transfer of certificates of deposit. Put the copy of the certificate of deposit at the bottom, falsely increase income or misappropriate the monetary funds obtained from the transfer, and engage in other illegal businesses.

2. According to professional judgment, the deposit certificate should be confirmed by letter or sampling. Letters and certificates must be managed by auditors themselves. According to the judgment of the internal control of the audited entity, the sampling ratio is determined. If there are any differences in the sampling letters, the reasons must be found and all letters must be confirmed.

3. Pay attention to the transfer of certificates of deposit. Check the transfer process of the memory slip during the accounting period with the deposit journal to confirm that all transfers have been accounted for. For the unrecorded transfer business, we should pay attention to whether its interest has been accounted for. If it is difficult to check one by one, it is necessary to calculate and find unacceptable differences, trace the reasons and put forward management suggestions according to the business agreement. The audit of outstanding accounts is one of the main aspects of bank deposit audit, which should be further verified according to the specific circumstances of outstanding accounts:

1. The bank hasn't received it yet. It is necessary to find out the source and nature of the money, and check it with the contract if necessary to confirm whether it belongs to the income that should be transferred. Especially for enterprises with tax avoidance requirements and profit balance requirements during the accounting period, we should maintain sufficient professional caution for large amounts of money collected by banks.

2. The bank pays the enterprise free of charge. It is necessary to find out the whereabouts and nature of this money and confirm whether it belongs to withholding expenses. For accounts that have not been settled for a long time, we should maintain sufficient professional sensitivity to confirm whether they belong to misappropriation of funds or related violations. If necessary, you can confirm the nature of the transaction with the unit where the money goes.

3. The enterprise has not paid the bank. It is necessary to find out the whereabouts and nature of this money and confirm whether it belongs to the virtual transfer cost. When necessary, you can confirm the nature of the transaction to the other unit.

4. The cash register of the enterprise is still confiscated. It is necessary to find out the source and nature of money, and pay special attention to the authenticity of money. When necessary, it is necessary to confirm the nature of the transaction to confirm whether it belongs to fictitious income.