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.