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I’m not sure what you’re discussing. I’m just talking about cash on the balance sheet. It’s the easiest thing in the world to audit and confirm that they s a correct balance that is owned by the company that has it on the balance sheet. Normally get a grad to send the confirmations to the bank.

Audit Procedures for Cash
by John Freedman



Accounting and auditing procedures differ across companies and industries but audit procedures for cash are similar. The auditor must obtain reasonable assurance that the cash balances of the company are stated accurately and does so using mostly standard procedures. Knowing audit procedures for cash can eliminate any surprises for you and your company around audit time.



Confirmation


The primary audit procedure used in testing cash balances is confirmation. In order to test confirmation, auditors ask the company's bankers to verify the balance of the bank accounts directly; responses are sent solely to the auditors. Bankers require electronic confirmation requests. The confirmation process also has an unintended benefit. When submitting the confirmation request, auditors commonly ask if the company has any loans with the bank as well. This helps to uncover any unrecorded liabilities present.