This document contains three sample audit reports that can be used by auditors to learn how other organizations conducted a corporate treasury review audit.
Testing involved activities such as obtaining and reviewing available corporate treasury policies and procedures related to cash management, investing and foreign exchange exposure management; interviewing key treasury and accounting personnel; reporting on observation and management action plans; and reviewing domestic and international cash and investment account reconciliations. The following observations were noted as a result of testing:
- Investment activity authorizations and approval limits are not established in the cash investment policy and foreign exchange hedging.
- Cash forecasting is rarely done, typically not extending further than one day ahead.
- Effective use of control disbursement accounts and positive pay services should be continuously reviewed for potential cost savings and increased efficiencies.
- Low volumes of payables are executed using electronic payments, specifically ACH, in place of checks and wires.