Treasury function
The treasury function manages an entity’s cash, funding, liquidity, investments and related financial risks. Its responsibilities and controls vary by organisation. Auditors consider how treasury activities affect financial reporting, risks and relevant audit evidence.
Worked example
A treasury team manages bank accounts and loans; the auditor examines bank confirmations and loan agreements.
Common mistake
Do not assume the treasury function is limited to holding cash or that ISA 505 requires a full operational audit of treasury.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |