What it is
An audit program lists the procedures the team will perform on one area, ties each to the assertion it addresses and gives a place to sign off and cross-reference the work. This one covers cash on hand and in bank accounts.
Procedures are written for a nonissuer audit under AU-C and US GAAP. Tailor the program to your risk assessment: add entity-specific steps and scale the rest to the assessed risks, but keep the substantive procedures AU-C 330 requires for each material class of transactions, account balance and disclosure whatever the assessed risk. Every client-specific item is a [bracketed placeholder].
When to use it
- Planning the cash and bank section of a financial statement audit.
- As a starting point to tailor to your firm’s methodology and the entity’s risks.
- To document how substantive procedures respond to assessed risks of material misstatement (AU-C 330).
What’s inside
- Account overview, assertions and risk assessment, including fraud and cutoff risk
- Planning and controls: bank account listing, signers, reconciliation review
- Substantive procedures: confirmations, reconciliations, outstanding items, cutoff, interbank transfers and proof of cash
- Restricted cash, compensating balances, overdrafts and presentation
- Conclusion and sign-off
Standard cited
This template follows AU-C 330 / AU-C 505. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 330 explained, AU-C 505 explained.
Questions
Must every bank account be confirmed?
AU-C 505 does not require every account to be confirmed, but confirming cash is routine because the evidence is external and reliable. If you do not confirm an account, document why and what you did instead. Include accounts closed during the year, since they are a common place for concealment.
What does a bank confirmation not cover?
A standard bank confirmation covers deposit and loan balances and some related information. It does not by itself confirm every arrangement the bank has with the client, so ask management about other arrangements, such as guarantees, letters of credit and compensating balance agreements.
Is an audit program the same as the working papers?
No. The program is the plan. The working papers are the evidence that each step was done, so each step should reference the schedule or memo where the work sits.
Related templates
- Bank Reconciliation Template (Excel)
- Bank Confirmation Letter (AU-C 505)
- Confirmation Control Log (AU-C 505)
Last updated 11/04/2026. All free templates.