Cash Flow Audit

Cash Flow Audit

A Cash Flow Audit is a detailed examination of a company’s cash inflows and outflows to ensure that financial resources are properly managed and accurately recorded. This audit evaluates whether cash movements align with the company’s accounting records, policies, and financial obligations.

Key Points:

Reviews cash receipts, payments, and bank reconciliations.

Identifies discrepancies, irregularities, or potential cash mismanagement.

Ensures compliance with International Financial Reporting Standards (IFRS) and regulatory requirements.

Provides management with insights into liquidity, financial health, and cash management efficiency.

Purpose:

The audit helps businesses maintain accurate cash records, optimize liquidity, and strengthen financial controls, ensuring that the organization has sufficient resources to meet its operational and strategic needs.