Auditing cash flow management

Presented by: Raj Gandhi

This one-day course is designed for internal auditors who would like to upscale their knowledge of cash management in order to provide assurance on related risks and internal control. 

Who should attend?

This course is suitable for heads of internal audit, audit managers and senior auditors.

What will I learn?

Upon completion, you will be equipped to undertake an internal audit engagement of the cash management activities in your organisation. You will gain knowledge about the need for effective cash management and crucially learn how to review the flow of key activities, main risks, control objectives and key controls in the following areas:

Cash management

• rationale for managing organisation’s cash flows and its utilisation of cash resources
• control of working capital to meet expenditure and other financing requirements
• investment of surplus cash using criteria in order: security, liquidity, yield
• borrowing of cash and use of banking facilities.

Structure and information

• management information and inputs
• periodic reporting of cash positions with appropriate KPIs and benchmarks
• general practices on any regulatory conditions.

Modelling and stress testing

• cash predictability and visibility
• stress testing assumptions, challenging the obvious, carrying out sense checks
• modelling multiple scenarios (historical, hypothetical or simulated)
• budgets and forecasts.

Management oversight

• independent matching/reconciliation to bank statements
• use of electronic banking and authority mandates
• verification and validation of bank transfer details prior to release of funds
• periodic control reports for scrutinising any irregularities.

Policy mandate

• policy and guidelines on parameters of cash management operations
• investing surplus funds or borrowing

Current best practices in internal auditing of cash management plus any relevant lessons learnt from recent disasters will be used throughout the course.

CPE Competency areas covered

Environment (Accounting and finance) 

7 CPE points