CLIENT NAME

Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
1. To Verify whether cash as ▪ Use transaction code (as defined by the client) for System
per the cash book match cash book report
with the General Ledger o Enter company code
balance o Enter Fiscal year
o Enter posting date
o Enter GL account number
o Execute
o This report shows the cash book entries
maintained in the system.
o This report displays the denominations of
cash balance maintained in the system.
▪ Compare this with the physical records Manual
maintained outside the system.
▪ Obtain reasons for variations and report the same.
2. Verify if adequate approval ▪ Check Physical register of cheque handing. Manual
is obtained for hand delivery ▪ Verify whether all the cheques prepared by Cash
of cheques & Bank Section are sent by post.
▪ Verify whether competent authority approval is
obtained for hand delivery of cheques (especially
for Outside Vendor)
▪ Obtain reasons for hand delivery of cheques and

1
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
report the same.
3. Verify whether Sale receipt/ ▪ Use transaction code (as defined by the client) for
EMD/SD/Tender fees are Tender Fee/ EMD/ receipt details report.
deposited timely o Enter document type
o Enter company code
o Enter creation date
o Enter purchasing organization
o The report shows the details like PO/Contract
Number/RFQ Number, Tender number,
Tender creation date, FI posting date
o Export the report to spreadsheet
o Select few high value samples
▪ Obtain the RFQ/Tender Fee due date for the
selected samples
▪ Compare the receipt date of EMD with the pay in
slip
▪ Report cases of abnormal delay in deposit.

4. Verify whether Imprest ▪ Use transaction code FBL3N to get the list of
expenditures are correctly Imprest Holder
recorded. o Enter company code
o Enter Imprest GL account (for example
091226)

2
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
o Select all line items
o Enter posting date ‘from’ – ‘to’
o Execute
▪ The report shows details of imprest vouchers
▪ Check the imprest voucher during the period for
the imprest holders and verify the imprest
spending with the management and company
policies.
▪ Check the approvals if the imprest spending is a
frequent and expenditure incurred are very high.
▪ Obtain reasons for abnormalities observed and
report the same.
▪ For verifying field party transactions , use
transaction code FBL3N to get the list of Cash –
Field Parties
o Enter company code
o Enter Imprest GL account (for example
091238)
o Select all line items
o Enter posting date ‘from’ – ‘to’
o Execute

3
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
5. Verify if the Parked ▪ Use transaction code FBV3 to check parked
documents are cleared documents
timely o Enter company code
o Enter Fiscal year
o Execute
o A list of the parked documents will be
displayed, if any
▪ Check if any Cash & Bank document are parked
for abnormal period
▪ Obtain reasons for abnormalities observed and
report the same.
6. To verify that the cash is ▪ Visit and see the safe where cash is kept. Manual
kept at a safe place ▪ Also ascertain that access to the cash box is
limited.
7. To verify that no payment in ▪ Use transaction code FBL3N System
excess of the limit stipulated o Enter company code
by Income Tax Act (except o Enter Cash accounts
advances) is made in cash. o Enter the relevant Audit period
o Execute
▪ Select the amount column and sort it in
Descending order
o Check if there are payments in excess of
prescribed income tax limit (i.e. INR XXXX

4
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
currently).
o Obtain reasons for abnormalities observed
and report the same.
▪ Alternatively use transaction code (as defined by
the client) for a particular date
o Enter company code
o Enter fiscal year
o Enter posting date
o Enter GL account number
o Execute
o This report shows the cash book entries
maintained in the system.
o Check if there are payments in excess of
prescribed income tax limit (i.e. INR XXXX
currently).
o Obtain reasons for abnormalities observed
and report the same.
▪ Alternatively,
8. To verify that payment is ▪ Use transaction code (as defined by the client) System
made against payment for cash book report
voucher authorized by o Enter company code
competent Finance Officers

5
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
and supported with o Enter fiscal year
appropriate original o Enter posting date
documents. o Enter GL account number
o Execute
o This report shows the cash book entries
maintained in the system.
▪ Review some cash vouchers to validate the Manual
payment is made against voucher authorized by
competent finance officers.
▪ The circulars indicating the powers of Finance
Officers to authorize payment may be obtained.
▪ Alternatively, use Transaction code FBL3N to
view all entries for the specific audit period..

9. To verify that signature of ▪ Use transaction code (as defined by the client) for System
receiver is taken at the time cash book report
of making the payment in o Enter company code
cash o Enter Fiscal year
o Enter posting date
o Enter GL account number
o Execute

6
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
oThis report shows the cash book entries
maintained in the system.
o Take a sample of few payments documents.
Manual
▪ Check for availability of receiver’s signature on
such payments disbursed.
▪ Obtain reasons for abnormalities observed and
report the same.

10. To verify that cash count is ▪ Use transaction code (as defined by the client) for System
done at the end of every cash book report
day, reconciled with the o Enter company code
cashbook, and verified by o Enter Fiscal year
the officer-in-charge.
o Enter posting date
o Enter GL account number
o Execute
o This report shows the cash book entries
maintained in the system.
o This report displays the denominations of
cash balance maintained in the system.
▪ Compare this with the physical records Manual
maintained outside the system.

7
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
▪ Checks whether records are initialed by
competent authority to verify availability of cash.
▪ Obtain reasons for abnormalities observed and
report the same.
11. Check whether any senior ▪ Obtain copies of cash checks done during the Manual
person does any surprise year.
cash counts during the year. ▪ Check whether such surprise cash checks were
performed by some officers.
12. To verify that the cash ▪ Use transaction code (as defined by the client) for System
maintained is as per the cash book report
requirements o Enter company code
o Enter Fiscal year
o Enter posting date
o Enter GL account number
o Execute
o This report shows the cash book entries
maintained in the system.
o This report displays the denominations of
cash balance maintained in the system.
o Repeat the above step to take out balance for
few days.

8
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
▪ Verify that the cash balances are in line with
ABC policies & instructions.
▪ Also check whether the physical cash balance on
hand is as per normal requirement for cash
disbursement.
▪ Obtain reasons for abnormalities observed and
report the same.

13. To verify that there are ▪ Obtain the list of user access rights for C&B Manual
adequate segregation of staff & officer from the SAP system
duties exist within the cash administrator.
& bank department. ▪ Verify that the segregation of duty is correctly
reflected in the user access rights.
▪ Compare the list of user right access for creation
journal voucher, approval, payment, creation of
cheque lot (FCHI) and preparation of
reconciliation statements of bank accounts in the
system.
▪ Obtain reasons for abnormalities observed and
report the same.

14. To verify whether the ▪ Use transaction code (as defined by the client) for System
insurance for cash book report
▪ fidelity

9
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
▪ cash in transit o Enter company code
▪ Cash in safe o Enter Fiscal year
is adequate and appropriate. o Enter posting date
o Enter GL account number
o Execute
o This report shows the cash book entries
maintained in the system.
o This report displays the denominations of
cash balance maintained in the system.
o Repeat the above step to take out balance for
few days.
▪ Compare this amount paid for the insurance with
the insurance policy.
▪ Obtain reasons for abnormalities observed and
report the same.
▪ Alternatively, use Transaction code FBL3N to
view all cash receipt entries for the specific audit
period.to check adequacy of Transit insurance.
o Enter company code
o Enter GL account
o Select all line items

10
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
o Enter posting date ‘from’ – ‘to’
o Execute
o Check receipt entries and verify the adequacy
of Transit insurance
15. To check whether ▪ Obtain a list of APP run pending in SAP from the System/
Automated Payment C&B users for the relevant company code. Manual
Program (APP) is pending. ▪ Obtain reasons for long pending APP runs.
Bank Guarantees
16. To verify that all Bank ▪ Use transaction code (as defined by the client) for System
guarantees received are kept Tender Fee/ EMD/ receipt details report.
in safe custody with Cash o Enter document type
and Bank section o Enter company code
o Enter creation date
o Enter purchasing organization
o Select bank guarantee from Instrument type
o The report shows the details like creation
date, status, expiry date, vendor code for
Bank Guarantees.
▪ Compare this report with BGs available.
Manual
▪ Ascertain whether the period of the bank
guarantees is appropriately extended in instances

11
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
where the contract with the supplier is extended
▪ Ascertain whether the bank guarantees are
returned back only after the receiving a
satisfactory completion of services certificate
from the user department
▪ Obtain reasons for abnormalities observed and
report the same.

17. To verify that bank ▪ Visit and see the safe custody where Bank Manual
guarantees are kept at safe guarantees are kept.
place. ▪ Also ascertain that access to the cash box/Cash
chest is limited.
▪ Obtain reasons for abnormalities observed and
report the same.
18. To verify that all the bank ▪ Use transaction code FBL3N System
payments are made on the o Enter company code
basis of duly signed o Enter Bank clearing accounts
payment advice/ vouchers o Enter posting date
received from the pre-audit
department. o Execute
▪ Match the list of documents generated from the
system physical documents and verify if adequate
approval and supporting docs are available.

12
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
▪ Alternatively, use transaction code FCHN for
cheque payments
o Enter company code
o Enter bank account code
o Enter Account ID
o Enter posting date
o Execute
▪ This shows the list of all bank payments made on
the posting date.
▪ Take a sample of few bank payments.
▪ Verify with the few bank payment advice from
the bill processing area for availability of
approval from pre-audit.
▪ Obtain reasons for abnormalities observed and
report the same.
19. To verify that the cheque ▪ Verify that the cheque books are in the Manual
books are kept in safe possession of a single person. This should include
custody. cheque books in use and that not in use.
▪ Additionally a register should be maintained to
note down the cheques received whenever a
cheque book is received from the bank. Then as
and when the cheque books are used an entry in
the register should be made.

13
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
▪ Obtain a cheque lot print from C&B user from
SAP system (FCHI) and compare the same with
cheques on hand.
▪ Review that the cancelled cheques are kept
separately.
20. To verify entry of all the ▪ Use transaction code FCHN for bank register. System
cheques issued made in the o Enter company code
cheque register. o Enter bank account code
o Enter Account ID
o Enter posting date
o Execute
▪ This shows the list of all bank payments made on
the posting date.
▪ Entry of all the cheques issued should be made in
the cheque register.
▪ Compare the cheque book counter slips with the
entries in the cheque register to validate the Manual
above.
21. To verify all check ▪ Obtain a list of persons authorized to sign Manual
signatories are properly cheques at a particular location.
authorized with maximum ▪ Verify whether those authorizations are as per the
limits on payment amounts. book of delegated powers (BDP).

14
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
▪ Check whether names of signatories are regularly
communicated to bank to verify removal of
signatories who have been transferred/resigned
from location.
▪ Obtain reasons for abnormalities observed and
report the same.
22. To verify that there are a ▪ Obtain bank resolution for authorized signatories. Manual
sufficient number of check ▪ Verify limits given to individual signatories.
signatories to verify that ▪ Verify whether sufficient number of signatories
payments will not be exist for timely issue of cheques.
unnecessarily delayed.

23. To review adequacy of the ▪ Obtain bank resolution/Authorization letter for Manual
current authorisations to authorized signatories.
verify that two signatures ▪ Verify limits given to individual signatories.
are required for all large ▪ Verify acknowledged letter sent to bank
payments indicating the number of signatories required for
large payments.
▪ Check whether authorities under bank resolution
are as per BDP.
24. To verify adequate ▪ Obtain the list of user access rights from the SAP Manual
segregation of duties system administrator.
between the person in ▪ Verify that the segregation of duty is correctly
receiving the cash and the reflected in the user access rights.

15
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
person accounting for it ▪ Compare the list of user right access for creation
journal voucher, approval, reconciliation of bank
accounts in the system.
▪ Obtain reasons for abnormalities observed and
report the same.

25. To verify timely credit for ▪ Use transaction code FBL3N System
the cheque deposited in o Enter GL account for bank Clearing (e.g
bank. 91392)
o Enter company code
o Select all items date ‘to’ and ‘from’
o Execute
o This report shows the GL account balances
and select change layout icon
➢ Select clearing document number
➢ Select clearing date
➢ Select check encashment date
➢ Export this report to excel.
▪ Compare document date with clearing date
▪ Obtain reasons for abnormal delay (more than one
month) in clearing of Cheque deposited with
bank.
.
26. To verify that the Bank ▪ Review of periodic reconciliation between bank System

16
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
Reconciliation statements book in SAP and the bank statements and other
are periodically prepared, related controls in BRS execution:
approved and reconciled. o Use transaction code FBL3N
➢ Enter GL account for bank Cleared (main
account) and Bank clearing account(e.g
91301 and 91302 respectively)
➢ Enter company code
➢ Select all items date ‘to’ and ‘from’
➢ Execute
➢ This report displays bank cleared/ clearing
account ledger.
➢ Sort on document type ’ZV” for bank
reconciliation documents (in cleared
account).
➢ Double click on the document number
➢ Click on document overview icon
➢ Click on document header.
➢ Check for entry date and time.
o Repeat the above step for all the periods
under considerations.
o Obtain reasons for delays in entering
reconciliation statement.
▪ Review and approval of Bank reconciliation
statement by approved personnel:

17
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
o Obtain copies of bank reconciliations
statements for past few months.
o Check whether the bank reconciliation are
reviewed and approved by competent
authority.
o Obtain reasons for abnormalities observed and
report the same.
▪ Obtain the following from C & B User
o Physical and unedited soft copy of Bank
Statement
o Previous month BRS statement (especially
data of un-reconciled debits and credits)
o Bank book from the system(clearing &
cleared)
o Print out from the C&B officers the Final
generated BRS report for the current month
▪ Check the unreconciled items appearing under
the heading Unmatched bank statement items –
Debit
o Verify the reasons for non accounting of the
same.
▪ Check the unreconciled Credit items appearing
under the heading Unmatched bank statement
items – Credit

18
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
o Verify the reasons for non accounting of the
same.
▪ Check the items appearing under the heading
Transfers from bank statement
o Check whether all daily SI balances is as per
bank statement reported
o Check whether all CC entries have been
passed
o Check whether Transfers from Bank
statement tallies with the Transfers from
Bank book
▪ Check the items appearing under the heading
Bank Charges
o Check whether bank charges are as per
agreed terms with the bank.
▪ Check the items appearing under the heading
Interest charges
o Check whether bank charges are as per
agreed terms with the bank.
▪ Check the items appearing under the heading
Interest Credited
o Check whether bank charges are as per
agreed terms with the bank.
▪ Check the items appearing under the heading

19
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
Unmatched bank book items – Debit
o Check for abnormal entries, stale cheques,
cheque for more than month not cleared and
check whether they have been dispatched
▪ Check the items appearing under the heading
Unmatched bank book items – Credit
o Check for abnormal entries, cheque deposited
but not cleared within reasonable time
▪ Review the subsequently cleared item report
▪ Check whether the balance of Matched items in
bank statement – Debit tallies with balance as per
Matched items in bank book – Credit
▪ Check whether the balance of Matched items in
bank statement – Credit tallies with balance as
per Matched items in bank book – Debit
▪ Check whether there is any balance under the
head Self Clearing Transactions (Balance should
always be zero)
▪ Check if there are any Unmatched items for forex
receipts clearing accounts.
Obtain reasons for abnormalities/ irregularities
and report the same.
27. To verify that the cheques ▪ Use Transaction Code (as defined by the client) System
outstanding for more than o Enter GL account code

20
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
six months are transferred to o Enter Company code
stale cheques account. o Enter date of current date
o Execute
▪ This report shows list of stale cheques for the GL
account on which the payment was posted.
▪ Check whether stale cheques (more than 3 years)
are reviewed and transferred to revenue account.
▪ Obtaine reasons for not transferring cheques to
Unencashed Cheques Account ‘190504’.

28. To verify that reissue of ▪ Use transaction code FBL3N System

stale cheque is done only o Enter GL account for Liabilities towards Un-
after receiving banker's encashed Cheques (e.g 190504)
certificate o Enter company code
o Select all items posting date ‘from’ and ‘to’.
o Execute
o This report displays GL account line items
o Select debit entries under the GL account
o Double click on document number
o Click on document overview icon
o Check whether bank clearing account is
credited.
▪ Obtain banker’s certificates for non clearance of Manual
stale cheque wherever physical instrument is not

21
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
available with ABC,
29. To verify that bank charges ▪ Use transaction code FBL3N System
debited by bank are as per o Enter GL account for bank Charges (e.g
agreement with bank and 201427)
are being approved by o Enter company code
competent official o Select all items posting date ‘from’ and ‘to’.
o Execute
o This report displays bank charges account
ledger.
o Select document types e.g ZV for bank
reconciliation normal document, ‘KM’ for LC
bank charges.
o Verify that bank charges, LC charges are
levied by bank as per agreement.
▪ Obtain reasons for all the open items for abnormal
times and report the same.
30. To verify whether back ▪ For verifying back dated entries in the system,
dated entries are posted in use transaction code FBL3N
the Bank book o Enter GL Code
o Enter company code
o Select All items
o Enter Relevant audit period
o Execute

22
CLIENT NAME
Audit Program – Cash & Bank

Sl Control Objectives Audit Steps SAP Report WP Completed Reviewed

No System Ref Review By/ Date By/ Date
or
manual
▪ This report shows the bank book entries
maintained in the system
▪ Select a sample and check whether entry is back
dated
o Double click on the selected entry
o Click on the document header
o Check the entry date and compare the same
with posting date
▪ Check whether any entries are posted after BRS
has been prepared
▪ Obtain reasons for such postings, if any
31. To verify adequacy of ECS ▪ Get the list of all the ECS payment made from
payments made physical bank statements
▪ Obtain relevant liability vouchers or supporting
bills from the cash and bank department
▪ Check whether all the ECS payments are
periodically reconciled
▪ Verify appropriate authority as per BDP
▪ Check whether cash/cheque payments are issued
to parties who are on ECS list.

23