After you’ve provided the banking and accounting data, it’s time to sit back and let Audit Sight do the heavy lifting by performing the Cash Proof.
What is the Cash Proof Module?
The Cash Proof module is designed to automate the reconciliation process between GAAP-reported (i.e., recorded) revenue or expense balances and the actual cash inflows and outflows reflected in bank records. This module is commonly used in transaction advisory and audit engagements.
Read this article [here], to understand the difference between the Standard & Advanced Cash Proof.
How Does It Work?
Audit Sight has developed a rules-based engine that analyzes every journal entry recorded by the company to pinpoint unusual transactions within the revenue and expense cycles. The system also matches transactions between the bank and the ledger to identify reconciling items, timing differences, and any unrecorded transactions. For each reconciling item, a dedicated tab is generated to document the findings.
In this guide, we’ll show you how to request the workpaper in under a minute and explain what steps remain for you, the auditor, to complete.
Step 1: Navigate to Your Engagement and Select Cash Proof
From the left sidebar, go to Engagements and locate the engagement for which you need the Cash Proof. Once inside the engagement, click Add new to begin the process.
Step 2: Configure Your Cash Proof Request
After initiating the Cash Proof, it’s time to configure your request.
- Select the report date range.
- Select the whether you want the Standard or Advanced report type. Learn more.
- Specify whether revenue, expenses, or both should be included in the testing
- Choose the entities in scope.
- Press the Submit button.
Standard Configuration Page:
Advanced Configuration Page:
For the Advanced Report Type, you also need to select your threshold for Grouping of Immaterial Items. Learn more.
- This can be either a percentage of revenue and expenses, the example below has a 0.5% set;
- or an exact dollar amount.
Note on Entities with Missing Data
If you’d like to request the Cash Proof before all data is fully uploaded or synced to our platform, entities with missing data will display a warning message.
You can still select all entities you wish to test. The system will automatically update the workpaper as additional data is processed.
Step 3: Download the Workpaper
Once the workpaper has been generated, you’ll receive an email with a link to download it. The workpaper can also be found under the Work Papers tab within the engagement.
To download a workpaper, simply click the download icon on the far-right side of the screen.
Understanding the Workpaper
If you’d like to review an example of a completed workpaper with all relevant annotations, please email us at support@auditsight.com.
