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Hamdy A. Rashed 
 
2012‐01‐11T00:00:00
Practical & Integrated 
Accounting Awareness 
For Yemeni who are interesting in knowing about accounting 
area 
Collected by: Hamdy A. Rashed, CMA, CAPM 
 
Practical & Integrated Accounting Awareness  2012 
 
Hamdy A. Rashed, CMA, CAPM| www.hamrconsult.yolasite.com 
 
2 
Contents 
Cash & Cash Equivalent ................................................................................................................................. 4 
Accounting Techniques ............................................................................................................................. 4 
1) Cash ................................................................................................................................................... 4 
2) Cash equivalent ................................................................................................................................. 4 
Financial Reporting ................................................................................................................................... 5 
1) Bank Overdrafts ................................................................................................................................ 5 
2) Restricted Cash ................................................................................................................................. 5 
3) Letter of Guarantee .......................................................................................................................... 6 
Internal Controls ....................................................................................................................................... 6 
Cash control environment .................................................................................................................... 6 
Risk Assessment for cash ...................................................................................................................... 7 
Control Activities of cash transactions and cash balance ..................................................................... 7 
Cash Receipt Controls ....................................................................................................................... 7 
Cash Disbursement Controls ............................................................................................................. 8 
Cash Balances Controls ..................................................................................................................... 9 
Management Accounting ........................................................................................................................ 15 
Financial Analysis ................................................................................................................................ 15 
Cash Management Techniques ........................................................................................................... 16 
Using float ....................................................................................................................................... 16 
Using Scheduled Cash Budget ......................................................................................................... 17 
Audit View ............................................................................................................................................... 17 
Audit Objectives .................................................................................................................................. 17 
Materiality ........................................................................................................................................... 18 
Inherent Risk ....................................................................................................................................... 18 
Audit Test of Controls and substantive test. ....................................................................................... 18 
A) Cash and cash equivalent balance audit .................................................................................... 18 
Forensic Accounting. ............................................................................................................................... 20 
Fraud Risk Scenario ............................................................................................................................. 21 
Larceny of cash ................................................................................................................................ 21 
Skimming ......................................................................................................................................... 22 
Practical & Integrated Accounting Awareness  2012 
 
Hamdy A. Rashed, CMA, CAPM| www.hamrconsult.yolasite.com 
 
3 
Check Tampering ............................................................................................................................ 22 
Kiting ............................................................................................................................................... 22 
Money theft .................................................................................................................................... 22 
Lapping ............................................................................................................................................ 22 
Fictitious cash balance or collections .............................................................................................. 22 
Corruption, Money Laundering and Financing Terrorists ............................................................... 23 
Forensic Investigating Techniques ...................................................................................................... 23 
Fraud Prevention and Detection Procedures ..................................................................................... 25 
Examples of Audit and forensic accounting working papers .............................................................. 25 
Legal Business Environment ................................................................................................................... 27 
Business Appraisal/Financial Valuation .................................................................................................. 28 
 
   

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Practical integrated accounting awarness for cash and cash equivalent