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Can these substantive procedures for bank balances be correct?
Compare year-end bank balances with monthly results of bank reconciliations to verify if they are as expected.
Cast the schedule of bank balances to ensure that it correctly adds up to the total in the statement of financial position.1 I don’t know what the first test accomplishes or even how it would be carried out.
2 The second test is fine.
Test 1) is checking if the trend is consistent hence confirming completeness of the bank balances
There is unlikely to be a trend in cash balances and they can fluctuate wildly from month to month depending in tax payments, dividends and capital expenditure.
Could I suggest ”Use of audit software to cast the receivables ledger” as an audit procedure?
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