Methods of auditing cash at the enterprise

Bondarenko, Natalya Article Methods of auditing cash at the enterprise University Economic Bulletin Provided in Cooperation with: Hryhorii Skovoroda University in Pereiaslav Suggested Citation: Bondarenko, Natalya (2025) : Methods of auditing cash at the enterprise, University Economic Bulletin, ISSN 2414-3774, Hryhorii Skovoroda University in Pereiaslav, Pereiaslav, Ukraine, Vol. 20, Iss. 1, pp. 83-99, https://doi.org/10.69587/ueb/1.2025.83 This Version is available at: https://hdl.handle.net/10419/323746 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ University Economic BulletinUniversity Economic Bulletin UDC 657.6:658.1 Methods of auditing cash at the enterprise Natalya Bondarenko* PhD in Economic Sciences, Associate Professor University of Customs and Finance 49000, 2/4 Volodymyr Vernadsky Str., Dnipro, Ukraine https://orcid.org/0000-0003-4733-8159 Suggested Citation: Bondarenko, N. (2025). Methods of auditing cash at the enterprise. University Economic Bulletin, 20(1), 83-99. doi: 10.69587/ ueb/1.2025.83. *Corresponding author Abstract. The relevance of the topic was due to the fact that in the context of economic instability, cash audit is becoming a key tool for monitoring the effectiveness of enterprise financial resources management, given their high liquidity and complexity of accounting. The aim of the study was to summarise the theoretical foundations of cash audit and develop practical recommendations adapted to the realities of Ukrainian enterprises. The research methodology was based on a combination of theoretical analysis and practical observations using the methods of induction, deduction, generalisation and source analysis, which ensured the identification of the main problems in the field of cash audit at the enterprise and the development of effective approaches to their solution. The article comprehensively examined the purpose of cash audit, outlined the main tasks of the auditor and systemises information resources, which will facilitate a high-quality audit and provide the auditor with the knowledge necessary for effective planning, conducting the audit, minimising errors and preparing reliable audit reports. Particular attention was paid to the audit procedures used at different stages of the audit, which will allow the auditor to deeply understand their specifics and effectively use them to obtain objective and reliable audit evidence. The article presented approaches to the classification of audit control methods used in Ukraine, with special attention paid to documentary verification and calculation and analytical techniques as key elements of ensuring a high-quality audit of cash at Ukrainian enterprises. An improved methodology was proposed, which included not only a general audit plan and programme, but also a detailed test of the accounting and control system. This will allow the auditor not only to verify the correctness of the cash flows, but also to assess the effectiveness of the internal control system. To facilitate and improve the quality of the audit, special working documents have been developed to help systemise information and ensure its reliability. The results of the study can be used not only in the practical activities of auditors, but also in the educational process of higher education institutions Keywords: audit; cash transactions; procedures; audit stages; general plan; programme; working document Copyright © The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (https://creativecommons.org/licenses/by/4.0/) Vol. 20, No. 1,2025 Journal homepage: https://ue-bulletin.com.ua/en Received: 21.01.2025. Revised: 22.04.2025. Accepted: 15.05.2025 DOI: 10.69587/ueb/1.2025.83 INTRODUCTION During periods of military instability, enterprises face massive challenges, including disrupted logistics, infrastructure losses, and declining consumer solvency. In such conditions, the need for effective control over the use of financial resources, especially cash, grows, requiring a review and improvement of audit approaches. An analysis of scientific research indicates significant attention to cash audit issues in both Ukrainian and global scientific thought. Among Ukrainian scholars, O.B. Silivonchik & M.I.Skrypnyk(2021) investigated the methodology for planning stages of cash audit. They analysed various scientific approaches to accounting organisation and audit methods, concluding that universal approaches are ineffective due to ignoring individual characteristics of enterprises. The authors emphasised the need to develop individualised methodologies for accounting, classification, and auditing cash, integrated into the overall enterprise management system. G.V. Bulkot & I.O. Mirko (2021), in turn, focused on the role of cash audit and ways to increase its effectiveness in ensuring cybersecurity. They stressed that audit must consider the need to protect confidential information and prevent unauthorised access to it due to digital threats, proposing the development of reliable secure servers and the involvement of qualified IT Methods of auditing cash at the enterprise University Economic Bulletin | Vol. 20, No. 1 84 the reliability of information about this key asset. Continuing this line, the study by S.Ashok & K.Baskaran(2019) is dedicated to audit and accounting procedures with a particular focus on petty cash. They highlighted the crucial importance of proper petty cash audit for the overall financial condition of an organisation, indicating the influence of factors such as the nature of operations, company size, and the risks of misappropriation, theft, and errors during reconciliations. This study provided a basic understanding of petty cash audit and its impact on cash balances, overall liquidity, and the financial position of an enterprise, reaffirming the need for a carefully developed and applied audit methodology for all forms of cash. Additionally, the impact of overall audit quality on the management of financial assets, particularly cash, was highlighted in a study by A.I.Hunjra(2025). This work, conducted on a sample of non-financial firms in South Asia, empirically confirmed that high audit quality, along with the effectiveness of the audit committee, significantly reduces a company’s cash reserves. This indicates that quality auditing activities, which are directly based on clearly developed audit methodologies, contribute to increased transparency, accountability, and, consequently, more efficient and optimised management of cash resources at an enterprise, reducing the need for excessive cash accumulation. Based on the provided conclusions, previous studies consider various aspects of cash auditing, including planning, cybersecurity, financial resource management, theoretical foundations, and the audit of electronic money. However, the comprehensive impact of the unstable economic environment on the organisation and methodology of cash auditing remains insufficiently explored. Although some authors do touch upon issues of risks and control, the specifics of conducting audits in conditions of economic instability, which may include currency rate volatility, inflationary processes, and disruption of economic ties, require separate and detailed study. There is also a need to adapt existing methodologies to the unique challenges arising in conditions of military actions, which significantly increase uncertainty and risks for enterprises’ financial flows. The aim of the article was to improve organisational and methodological approaches to auditing enterprise cash in conditions of economic instability caused by military actions. The main objectives were: to analyse modern approaches to auditing, to systematise sources of audit evidence, and to develop an adapted audit plan taking into account the specifics of crisis conditions. MATERIALS AND METHODS In the process of studying the theoretical and methodological foundations of cash audit at enterprise, a set of scientific methods was applied. The research is based on theoretical analysis aimed at studying and systematising scientific works of Ukrainian scientists on the problems of organising and conducting cash audit, cash accounting and financial stability of enterprises. Particular attention was paid to the analysis of approaches to determining the specialists. R.V.Boyko & Ya.V.Iliv(2024) noted the importance of effective financial resource management for the stability of trading companies. They revealed the purpose and objectives of cash resource audit, described approaches to its essence, sources of audit evidence, and proposed a detailed algorithm for verifying financial statements (Form2 “Statement of Financial Results (Statement of Comprehensive Income)”) to identify possible fraudulent activities or errors. N.V.Kuzmenkoet al.(2021) analysed the specifics of cash audit, highlighting theoretical aspects of its organisation. The authors emphasised the importance of documentary confirmation of facts in the auditor’s activities and propose using a test for checking the state of internal control and a detailed audit plan to improve its quality. In connection with the spread of electronic money, A.S.Stolpova(2020) investigated the methodological principles of its audit, including virtual currencies, concluding that audit objectives must take into account the novelty and technological complexity of electronic money, as well as the need to assess risks and the effectiveness of internal control when auditing virtual currencies. Alongside the research of Ukrainian academics, global scientific thought also pays significant attention to this area, especially in the context of improving internal control effectiveness and overall audit quality. Specifically, a study by S.M.Fauziahet al.(2023), conducted at a broiler farming enterprise, revealed a significant positive correlation between internal audit of cash disbursements and internal control (correlation coefficient0.721). The results of this work showed that internal audit effectively helps to identify significant discrepancies between budgeted and actual operating expenses. This underscores the importance of audit procedures for identifying control deficiencies, ensuring the accuracy of cash accounting, and minimising risks, including fraud. Continuing the consideration of practical aspects of applying audit to cash, a study by B.A.Hararedet al.(2024) focused on the application of operational audit to assess the effectiveness of internal control specifically over cash receipts and disbursements at ClinicXYZ. The results showed that the effectiveness of internal control was 59.34%, indicating the presence of significant shortcomings, such as the absence of written policies and procedures and an insufficient number of supporting documents. This study provided specific recommendations for improving cash management, emphasising the importance of audit as a tool for identifying weaknesses in the cash internal control system and developing measures to strengthen it. In terms of the direct application of audit procedures to cash, the study by K.Retnaningrum & S.Trisnaningsih(2025) was valuable. They analysed the implementation of audit procedures for cash and cash equivalents accounts in a non-profit foundation. The results showed that audit procedures were performed in accordance with established standards, despite some operational obstacles. This work emphasises that a thorough audit of cash is critically important, as it is a frequent target of fraud, and demonstrates the practical application of audit methodology to ensure University Economic Bulletin | Vol. 20, No. 1 Bondarenko 85 purpose of cash audit. For this reason, various interpretations of the purpose of the audit presented in the scientific literature were studied and compared. In particular, the works of the following authors were analysed: N.Y.Radionova & K.O.Zhura (2017); O.E.Nezdoyminoga & O.G.Krasota (2019); A.R.Okonchuk & A.R.Radionova(2021). The application of the comparative method identified common and distinctive aspects in the definition of the purpose of cash audit by different authors, as well as the most common audit objectives. The results of this analysis were systematised in the form of a table reflecting the main emphases made by each researcher. Along with the theoretical analysis, the study used logical analysis to reveal the essence of cash audit as an important element of the internal control system and ensuring the financial stability of the enterprise. Inductive and deductive methods were used to formulate generalisations based on the analysis of certain scientific provisions and to draw logical conclusions about the organisation of the audit process. The study of audit procedures took into account the provisions of International Standards on Auditing (ISA)315(2019), ISA330(2017) and ISA500(2020). The application of ISA315 and ISA330 allowed for a clear separation of risk assessment procedures and subsequent audit procedures (substantive and control testing), which provided a more structured approach to planning and performing cash audits. ISA500(2020) was used to detail the content of audit procedures, such as inspection, external confirmation, observation, recomputation, re-performance, inquiry and analytical procedures, which contributed to increasing the reasonableness of audit opinions. An important stage of the research was a detailed analysis of the legal framework of Ukraine regulating the accounting and audit of cash. The following documents were studied: Resolution of the Board of the National Bank of Ukraine No.148(2017), Resolution of the Board of the National Bank of Ukraine No.51(2018), Order of the Ministry of Finance of Ukraine No.879(2014), Law of Ukraine No. 851-IV(2003), Law of Ukraine No. 1591-IX (2021), Order of the Ministry of Finance of Ukraine No.73(2013). The analysis of these documents made it possible to determine the legislative requirements for the organisation of cash accounting, control and audit procedures in Ukraine. A tabular method was used to systematise information on the main sources of audit evidence and the list of audit procedures used in the audit of cash. This provided a visual representation of the classification of information sources (internal and external) and types of audit procedures with examples of their practical application. The modelling method was used to develop a structured approach to the audit of cash. This is reflected in the development of Table4 “Plan for conducting a cash audit at an enterprise”, which presents a three-stage model of the audit process, covering the organisational and preparatory, main and final stages. The comprehensive application of the methods of theoretical analysis, comparison, logic, induction and deduction, analysis of the regulatory framework, tabular method and modelling provided an in-depth study of the theoretical and methodological aspects of cash audit and became the basis for further conclusions and developments. RESULTS AND DISCUSSION Maintaining business stability in a time of war, when logistics are disrupted, infrastructure is destroyed and the purchasing power of the population is declining, is an extremely difficult task. In such circumstances, managers must look for innovative solutions to ensure business sustainability. Those companies that can optimise the use of their resources will have a better chance of not only surviving but also strengthening their market position. In this context, control over cash, which is the most liquid asset, is of particular importance. Therefore, a high-quality audit of cash is a necessary tool to ensure financial stability and prevent the risks of errors and fraud in accounting. The organisation of an audit begins with a clear definition of its purpose and the formulation of specific tasks. Typically, the auditor determines the purpose and draws up a list of tasks to be performed during the audit at the preparatory stage, taking into account the terms of the agreement concluded with the client. The latter confirms that an agreement has been reached between the auditor and the client. From a methodological point of view, the auditor should have an understanding of the purpose and objectives of the cash audit before the start of the relationship with the client, i.e. a certain basis that will only need to be adjusted later (Alieksieiev & Mazur,2020). This will allow to speed up the organisational work and proceed directly to the audit itself. The views on the composition of the cash audit objective found in the economic literature are presented in Table1. Author Purpose N.Y. Radionova & K.O.Zhura (2017) Y.V.Podmeshalskaet al. (2019) T.O.Melikhova & A.S.Veriovkina (2019) O.E.Nezdoyminoga & O.G.Krasota (2019) O.G.Ryabchuk & I.R.Korotaeva (2018) A.Yu. Kozachenko (2021) A.R. Okonchuk & A.R.Radionova (2021) L.M. Kulinich & L.Yu.Patramanska (2016) 1. Installation:  legality + + + Table 1. Approaches to determining the purpose of a cash audit Methods of auditing cash at the enterprise University Economic Bulletin | Vol. 20, No. 1 86 As can be seen from Table 1, each of the reviewed works focused on establishing the reliability of data on cash flows. Usually, reliability of information refers to the reflection of the actual state of affairs, as well as the absence of material errors and bias. Such qualitative characteristics as completeness, correctness, legality and timeliness are often mentioned. A number of scholars, namely Y.V.Podmeshalskaet al.(2019), A.Yu.Kozachenko(2021), L.M.Kulinich & L.Yu.Patramanska(2016), the purpose of the audit is to provide a reasoned opinion in the report, which requires a sufficient evidence base. Decisions on the sufficiency of audit evidence are made on the basis of the auditor’s professional judgement, which imposes a significant responsibility on the auditor. The approach described above is acceptable, since the provision of audit services ends with the preparation of a report, the final part of which contains a conclusion (positive, conditionally positive, negative) or a refusal to formulate it. The most common reasons for not issuing an opinion are the lack of sufficient evidence and/or a violation of the principle of independence. The aim of the cash audit is to provide the auditor with a reasonable opinion on the legality, reliability, timeliness, correctness, appropriateness and compliance with the applicable laws and regulations of the information on the availability and movement of cash reflected in the accounting records. The main areas of the cash audit are as follows:  assessment of the state of payment discipline and internal control system of cash transactions;  verification of cash safety, timely and complete posting of cash and its intended use;  verification of compliance with the established cash balance limit, availability of a document approving the procedure for its calculation;  control over the availability of a full liability agreement with the cashier;  verification of compliance with the terms of cash inventory, correctness of documentation of its results;  determining the areas of use of non-cash funds, their legality and purpose;  determining the number and types of bank accounts of the company, the correctness of their opening, and the specifics of banking services;  controlling the accuracy and correctness of filling in primary documents;  checking the absence of errors in the reflection of information on cash on synthetic and analytical accounts;  determining whether the relevant information in the primary documents, accounting registers and financial statements is identical;  confirming the accuracy of the data on cash presented in the financial statements of the entity. Audit evidence is obtained from both internal (the most important part) and external sources. Internal sources are important because they are directly related to the company’s operations and provide detailed information about business transactions and internal controls. However, to ensure the objectivity and confirmation of internal sources, the auditor should also obtain information from external sources that are independent of the company and can provide additional confirmation or identify potential discrepancies. Such a comprehensive approach to Author Purpose N.Y. Radionova & K.O.Zhura (2017) Y.V.Podmeshalskaet al. (2019) T.O.Melikhova & A.S.Veriovkina (2019) O.E.Nezdoyminoga & O.G.Krasota (2019) O.G.Ryabchuk & I.R.Korotaeva (2018) A.Yu. Kozachenko (2021) A.R. Okonchuk & A.R.Radionova (2021) L.M. Kulinich & L.Yu.Patramanska (2016)  reliability + + + + + + + +  appropriateness + + +  completeness + + + + +  timeliness of reflection + + + +  impartiality +  correctness + + + + +  compliance with applicable laws and regulations + + + +  Identity of information in primary documents and accounting registers + 2. Obtaining sufficient audit evidence to form an opinion + + Source: created by the author Table 1. Continued University Economic Bulletin | Vol. 20, No. 1 Bondarenko 87 collecting audit evidence allows the auditor to form a reasonable and reliable opinion on the company’s financial statements. The main information sources for the audit of cash are presented in Table2. Name of the group List of components Internal administrative documents Order on accounting policy (regarding the accounting of cash desk and bank account operations); Order on approving the procedure for calculating the cash till limit Documents for recording cash transactions Cash receipt voucher (No. KO-1); Cash payment voucher (No. KO-2); Register of cash receipt and payment documents (No. KO-3); Cash book (No. KO-4); Book of cash issued and received by the senior cashier (No. KO-5); Cash disbursement statement; cash receipt Accounting documents Cashless payments Payment instructions, bank statements Acts and reports Act of inventory of cash and cash equivalents; Report on the use of funds issued for business trips or against accountability; Act of reconciliation of mutual settlements; Act of audit of financial and economic activitie Accounting registers Journal 1, statements 1.1, 1.2, 1.3; Register of uncollected wages Financial statements Balance Sheet (Statement of Financial Position) (Form No. 1); Statement of Cash Flows (Form No.3 / 3-n); Notes to the Annual Financial Statements Regulatory and legal acts Resolution of the Board of the National Bank of Ukraine No. 148 (2017); Order of the Ministry of Finance of Ukraine No. 879 (2014); Law of Ukraine No. 851-IV (2003); Law of Ukraine No.1591-IX (2021) Table 2. Key information sources for cash audit Table 3. Audit procedures for the audit of cash Source: created by the author Source: created by the author Various procedures are applied in the course of an audit. From the perspective of international practice, the methodology of which is set out in ISA 315(2019) and ISA330(2017), they are divided into risk assessment procedures and subsequent audit procedures (substantive and control tests). ISA500(2020) provides a detailed description of the content of inspection, external confirmation, observation, recalculation, re-performance, enquiry and analytical procedures (Table3). They are grouped according to the context in which they are used by the auditor. Names of audit procedures Examples of use Observations Overseeing the process of inventorying cash and cash documents stored in the company’s cash desk; monitoring the documentation of transactions with accountable persons Confirmation Confirmation of the amount of the current account balance; confirmation of the intended use of funds, the terms of agreements concluded between the company and a third party Inspection Checking entries in the cash book, compliance with the storage periods for primary documents, compliance with safety rules when working with cash equipment Request Sending letters of request for data reconciliation to the company’s counterparties; verbal requests to employees regarding cases of issuing money for reporting, payment of salaries (from the cash desk or to a bank card) Recalculation Verification of the correctness from the mathematical point of view of determining the net cash flow and its balance at the end of the period in the Cash Flow Statement (form No. 3/3-n); determination of the correctness of the calculation of the balance at the end of the day in the Cash Book (No. KO-4) Re-execution Re-distribution of cash flows by type of activity (operating, financing, investing); re-determination of exchange rate differences on foreign currency transactions Analytical procedures Analysis of liquidity and solvency indicators for several years, comparison with industry averages; factor analysis of net cash flow; determination of the plausibility of links between financial and non-financial data (number of new customers, hours worked, market share, volume of transactions per day, etc.) According to approaches adopted in Ukraine, organoleptic, computational-analytical, documentary, and methods of generalisation and implementation of control results are distinguished. General scientific methodological techniques are also singled out. This method of grouping is described in the works of L.V.Gutsalenkoet al.(2014), L.L.Hevlych & I.G.Hevlych(2017), and N.V.Kotseruba(2018). Control over the actual state of objects is realised on the basis of organoleptic (sensory) techniques, which include inventory taking, control measurements, observation, expert examination, and experiment. Some of them are generally not used in the audit of cash and cash equivalents. For example, control measurements of works are usually resorted to during an audit of expenses or settlements with suppliers and contractors to establish facts of Methods of auditing cash at the enterprise University Economic Bulletin | Vol. 20, No. 1 88 volume distortion, overpricing or underpricing, inclusion of non-budgeted expenses, etc. Computational-analytical audit techniques include economic analysis, statistical calculations, and economic-mathematical methods and models. This group of methods, along with forms of documentary verification, is widely used in auditing cash operations. Economic analysis allows for uncovering the reasons for deviations in reported figures and identifying signs of irregularities. For presenting information on cash flow by type of activity, a separate report (Statement of Cash Flows (Form No.3/3n)) is provided. As T.A. Pereymyvovk (2007) noted, during the study of economic activity, “it is very important not to make a mistake in assessing the impact of factors (negative or positive), when ultimately the value of one factor can be outweighed by the value of other factors with an opposite assessment”. An auditor who expresses their professional judgment on the financial statements of an economic entity must not only take into account the current state but also the enterprise’s immediate prospects. That is, based on, for example, various models for predicting the likelihood of bankruptcy, assess the riskiness of activities. Documentary verification, in its essence, can be formal, arithmetic, regulatory and legal, cross-checking, analytical, and chronological. I.V. Beshulya & L.L. Hevlych(2013) proposed dividing documentary methods into three groups: 1)examination of an individual document (register, reporting form); 2) comparison of accounting documents (registers, reporting forms); 3)examination of data reflecting the movement of homogeneous valuables. The content of operations accompanied by cash movement can be examined by the auditor both in chronological order and in a systematised manner. If documentation is checked in chronological order, there is usually a need for simultaneous work with different types of it. It is much more convenient to study documents by groups of economically homogeneous operations. Cross-checking is used to confirm the state of settlements with counterparties and the corresponding movement of funds in the bank account. T.Ya. Matkivska & O.M.Bondarenko(2020) noted that this type of verification can also be carried out with the bank serving the enterprise to gain confidence in “the presence of open accounts.” Auditors also resort to arithmetic calculation of all totals in a document, which allows for identifying errors made during its preparation. For example, in the cash disbursement statement, provided in Appendix 1 to Resolution of the Board of the National Bank of Ukraine No.148(2017), the total amount in the fourth column of the table, the volume of actually disbursed cash per statement, and the amount of deposited funds are checked. The national approach provides for a clear distinction between documentary and factual control, while the international approach combines them within inspection. During documentary verification, it is common to resort to re-performance, recalculation, inquiry, and external confirmation, although each of these procedures has a slightly different name in domestic practice. According to the international view of the audit process (ISA500,2020), there is no separate group for methods of generalisation and implementation of control results, as these are considered obvious and not related to the examination stage. The most complete match in content is observed for the observation procedure, which is included in the organoleptic group in national practice. Each audit is conditionally divided into several stages. Most researchers who have studied the organisation of cash audits have settled on the option of distinguishing only three stages, namely: preparatory, main, and concluding. Such information is contained in the works of N.Y.Radionova & K.O.Zhura(2017), O.G.Ryabchuk & I.R.Korotaeva(2018), T.O.Melikhova & A.S.Veriovkina(2019). The second most frequent distribution is into four stages. The aforementioned three are supplemented by a physical verification stage, also called factual, which is proposed to be conducted after performing preparatory procedures, i.e., the first stage. This position is held by Y.V.Podmeshalskaet al.(2019) and I.D.Golyash & B.N.Menkiv(2019). There are also scholars who distinguish six or more stages of cash audit. For example, M.D. Korinko (2014) compiled a list of auditor actions during the verification of cash operations of an economic entity, combining them into six stages. In his opinion, such a verification should begin with “a sudden audit of the cash till with a full sheetby-sheet recalculation of all money and other cash documents located in the enterprise’s cash till”. A.Yu.Kozachenko (2021) provides similar information in her article. According to M.Yu.Gulko(2020), eight stages of organisation and direct conduct of the audit of monetary assets, the main component of which is cash, should be distinguished. The author provided the highest degree of detail for the previously mentioned stages. For example, he divided the preparatory stage into the following three: “preliminary examination of client’s activities; drawing up an audit plan; constructing a scheme of the audit process sequence”. It is more appropriate to disclose these processes as part of the first stage of the audit, rather than separating them. Other approaches are also found in economic literature. Yu.V.Shavrina & T.L.Sliunina(2024), although they distinguished four stages of audit, like Y.V. Podmeshalskaet al.(2019), according to their vision, the audit should begin with an organisational stage, during which the auditor collects and analyses information about the enterprise’s activities, its structure, management and accounting system, assesses the feasibility of the audit, and concludes the service agreement. Only after this does the transition to the preparatory stage occur, where an audit team should be created, a general audit strategy developed, and an audit plan, programme, and schedule developed. The main stage was renamed to technological without changing its essence, as was the concluding (final) stage. The option of dividing the cash audit process into three stages is sufficient: organisational-preparatory, main, and concluding. There is no need to single out a physical (factual) verification stage as a separate group, as the process of University Economic Bulletin | Vol. 20, No. 1 Bondarenko 89 observing the inventory of cash and cash documents in the till is a type of audit procedure, which, although it significantly affects the quality of the conclusions drawn, is not more important than other types, such as inquiry, recalculation, analytical procedures, etc. The general appearance of the cash audit plan is presented in Table4. Name of the audit stage Content Organisational-preparatory  familiarisation with the specifics of the company’s business;  verification of the absence of circumstances that may be grounds for refusal to conduct the audit of the company’s financial statements;  studying the general industry indicators of similar enterprises;  determination of the audit risk;  calculation of the materiality level;  preparation of the audit plan and programme;  conclusion of an audit services agreement. Main  performing audit procedures in accordance with the previously prepared audit programme;  completion of working documents. Concluding Summarising the results of the audit:  analysis of the violations and abuses found;  coordination of the identified violations with the management and their correction;  preparation of the audit report. Table 4. Plan for conducting a cash audit at an enterprise Table 5. Test of the company’s accounting and internal control system Source: created by the author The first step is to investigate the issue of the absence of a conflict of interest and compliance with the principle of auditor independence. For example, if the key audit partner and the chairman of the company’s Supervisory Board are family members of the first or second degree of kinship, the objectivity of the opinion presented in the audit report will be questionable. The audit entity thoroughly familiarises itself with the specifics of the company’s business. Information on the main and additional activities, main sales markets, main counterparties of the company, organisational structure, accounting policy, etc. is studied. The task of the company acting as the client is to provide all the necessary documentation. This may include, first of all, the company’s Charter, Certificate of State Registration, certificate from the Unified State Register of Enterprises and Organisations of Ukraine (USREOU), Order on Accounting Policy, Order on Approval of the Procedure for Calculating the Cash Balance Limit, Regulation on the Internal Audit Service, financial statements and audit reports for previous years, etc. At the organisational and preparatory stage, the internal control system is also assessed. If a high level of efficiency is found, this will reduce the labour intensity of the subsequent audit, the sequence of tasks of which is recorded in the programme. The elements to be examined are usually the internal environment, controls in place, risk management, information and communication, etc. A commonly used method of assessment is testing. By testing the internal control system, the auditor evaluates its effectiveness, identifies deficiencies in cash accounting, determines audit risk, assesses the qualifications of employees who perform cash transactions, and establishes the effectiveness of the control procedures adopted by the company (Table5). The results obtained, among other things, allow the development of the programme to choose the right method of conducting the audit: spot, full or combined. No. Question Content Answer Options Notes Yes No 1 Were any deficiencies, irregularities, or abuses identified in previous audits? 2Does the Accounting Policy Order sufficiently disclose the specifics of accounting for cash and cash equivalents? 3 Does the company have a schedule of cash and cash equivalents document flow? 4 Do accounting employees leave frequently? 5 Is there a full liability agreement with the cashier? 6Are there proper conditions for storing cash and cash documents in the company’s cash desk? 7 Has the procedure for calculating the cash balance limit been approved? 8 Does the company comply with the cash balance limit? 9Has the company been fined for violating the provisions of the Regulation on conducting cash transactions in the national currency? 10 Are the cash books numbered and laced in the prescribed manner? Methods of auditing cash at the enterprise University Economic Bulletin | Vol. 20, No. 1 90 After analysing the results obtained during the assessment of the company’s internal control model, an audit programme is drawn up. It discloses information about the timeframe for completing the tasks and the persons responsible for the quality of the audit, as well as audit procedures, sources of information, indices of working documents, etc. It is advisable to start an audit of cash with a surprise inventory. The external auditor should act as an observer in this process. Prior to the physical inspection, the cashier provides the chairman of the inventory committee with a receipt stating that all cash received has been posted and cash issued has been written off, and that all receipt and expense documents have been submitted to the accounting department. Non-cash payments are also subject to inventory. They are subject to a special procedure, which involves counter reconciliations with counterparties. The actual existence of cash in transit, i.e. cash belonging to the entity but not yet credited to the relevant current or other bank account, can be confirmed by comparing the amounts recorded in sub-accounts 333“Cash in transit in national currency” and 334“Cash in transit in foreign currency” in accordance with Instructions no.291 (Ministry of Finance of Ukraine,1999), with the information contained in receipts from banks, post offices, and copies of the accompanying statements for transferring proceeds to the bank to collectors. The audit of cash transactions is usually carried out using a continuous method, with special attention paid to compliance with cash discipline. Although this method is the most labour-intensive, it also minimises the risk of errors not being detected. The continuous type of audit is used in situations where the auditor believes that the use of the sampling method will not be sufficiently effective to obtain the necessary audit evidence. This is because the sampling method may not detect significant irregularities in such a sensitive area of accounting as cash transactions, where the risk of fraud is significant. An exception is possible only for cash transactions that are of a large-scale nature. The cash audit programme is set out in Table6. No. Question Content Answer Options Notes Yes No 11. Is the timeliness of the employee’s return of unused funds provided for reporting controlled? 12 Is the cash register inventory carried out more than once a year? 13 Does the company carry out unscheduled inventories? 14 Are there any agreements on opening bank accounts? 15 Did the company conduct mutual verification of settlements with counterparties in the reporting period? 16 Are the rules for determining the effect of changes in foreign exchange rates, as set out in NP(S)BO 21/IAS 21, adhered to when settling with foreign counterparties? 17 Is the revaluation of end-of-day monetary items, for which transactions occurred during the day using the NBU exchange rate, performed? 18 Do accounting staff monitor legislative changes regarding accounting and taxation? 19 Are the retention periods for primary documents related to cash and cash equivalents adhered to? 20 Is the verification of synthetic and analytical accounting data performed before preparing financial statements? 21 Is the consistency of accounting register indicators and financial statements checked? 22 Do you consider the internal control system at the enterprise to be effective? Source: created by the author Table 5. Continued No. List of issues to be checked Audit methodological techniques Audit evidence Term 1 Checking the compliance of accounting data and the actual availability of cash and cash documents on hand Supervision of the inventory process Cash Book, Cash Receipt Voucher (CRV), Cash Payment Voucher (CPV), Act on the Results of Inventory of Available Funds Held 2 Checking the establishment of and compliance with the cash balance limit in the company’s cash desk Documentary, arithmetic Cash Limit Calculation, Order on Approval of Cash Limit Calculation Procedure, Order on Accounting Policy, Cash Book, CRV, CPV 3Verification of compliance with legal requirements for the employment of a cashier Documentary, regulatory and legal Full Material Liability Agreement, Cashier’s Job Description Table 6. Cash audit programme University Economic Bulletin | Vol. 20, No. 1 Bondarenko 97 detection and correction of errors. The results of the study are important for improving the quality of audit services and strengthening financial discipline at enterprises in a difficult economic situation. Promising areas for further research in this area are the development of adapted cash audit methods, taking into account the specific risks arising in the context of the ongoing war, including logistical constraints and inflationary processes, as well as the study of the impact of digital technologies, in particular the use of electronic money and online payment systems, on the cash audit process and the development of appropriate tools and procedures for their verification. In addition, it is important to study issues related to the detection and prevention of cash fraud in a war economy. ACKNOWLEDGEMENTS None. FUNDING None. CONFLICT OF INTEREST None. REFERENCES [1] Alieksieiev, I., Mazur, A., & Moroz, A. (2020). Methodology of prospective and current research in finance. 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Peculiarities and problems of auditing cash in the cash register and on the accounts of a business entity in a bank. Scientific Bulletin of Kherson State University. Series: Economic Sciences, 29(2), 181-184. [43] Sadovska, I., Markus, O., & Nahirska, K. (2022). Formation of a management model of the Statement of Cash Flows in the context of accounting policy according to IAS. Economic Journal of the Lesya Ukrainka Volyn National University, 2(30), 39-45. doi:10.29038/2786-4618-2022-02-39-45. University Economic Bulletin | Vol. 20, No. 1 Bondarenko 99 Методика аудиту грошових коштів на підприємстві Наталія Бондаренко Кандидат економічних наук, доцент Університет митної справи та фінансів 49000, вул. Володимира Вернадського, 2/4, м. Дніпро, Україна https://orcid.org/0000-0003-4733-8159 Анотація. Актуальність теми зумовлена тим, що в умовах економічної нестабільності аудит грошових коштів стає ключовим інструментом контролю за ефективністю управління фінансовими ресурсами підприємства, враховуючи їхню високу ліквідність та складність обліку. Метою роботи було узагальнення теоретичних засад аудиту грошових коштів та розроблення практичних рекомендацій, адаптованих до реалій українських підприємств. Методологія дослідження ґрунтувалася на поєднанні теоретичного аналізу та практичних спостережень із застосуванням методів індукції, дедукції, узагальнення й аналізу джерел, що забезпечило виявлення основних проблем у сфері аудиту грошових коштів на підприємстві та розробку ефективних підходів до їх вирішення. Всебічно досліджено мету аудиту грошових коштів, окреслено основні завдання аудитора та систематизовано інформаційні ресурси, що сприятиме якісній перевірці та надасть аудитору знання, необхідні для результативного планування, проведення аудиту, мінімізації помилок і підготовки достовірних аудиторських звітів. Особливу увагу приділено аудиторським процедурам, які застосовуються на різних етапах перевірки, що дозволить аудитору глибоко розуміти їхню специфіку та ефективно використовувати для отримання об’єктивних і достовірних аудиторських доказів. У роботі було представлено підходи до класифікації аудиторських методів контролю, що застосовуються в Україні, при цьому особливу увагу приділено документальній перевірці та розрахунково-аналітичним прийомам як ключовим елементам забезпечення якісного аудиту грошових коштів на українських підприємствах. Запропоновано удосконалену методику, яка включає в себе не лише загальний план та програму аудиту, а й детальний тест системи обліку та контролю. Це дозволить аудитору не просто перевірити правильність відображення грошових коштів, а й оцінити ефективність системи внутрішнього контролю. Для зручності та підвищення якості аудиту розроблено спеціальні робочі документи, які дозволяють систематизувати інформацію та забезпечити її достовірність. Результати дослідження можуть бути використані не лише в практичній діяльності аудиторів, а й в навчальному процесі закладів вищої освіти Ключові слова: аудиторська перевірка; касові операції; процедури; етапи аудиту; загальний план; програма; робочий документ [44] Semenets, A.P. (2017). Organizational and methodological provisions for auditing electronic money transactions. Bulletin of Zhytomyr State Technological University. Series: Economic Sciences, 2(80), 41-48. [45] Shavrina, Yu.V., & Sliunina, T.L. (2024). Audit of the financial results of the enterprise. Business Inform, 6, 308-314. doi:10.32983/2222-4459-2024-6-308-314. [46] Silivonchik, O.B., & Skrypnyk, M.I. (2021). Organization of accounting and methodology for auditing cash at an enterprise. Economy and Society, 29. doi:10.32782/2524-0072/2021-29-42. [47] Stolpova, A.S. (2020). Main tasks and components of electronic money audit. Scientific Bulletin of Uzhhorod National University. Series: International Economic Relations and World Economy, 30, 171-177.