Here’s a structured Audit Working Paper Template for Bank Payment Cut-Off Testing:
1. Objective:
To verify that bank payments are recorded in the correct accounting period and comply with financial reporting standards.
2. Cut-Off Policy & Understanding:
| Payment Type | Bank Cut-Off Time | Company Cut-Off Policy | Source of Information |
|---|---|---|---|
| Wire Transfers | [Time] | [Policy] | [Bank Policy Document] |
| ACH Transfers | [Time] | [Policy] | [Company Policy] |
| Credit Card Payments | [Time] | [Policy] | [Transaction Reports] |
3. Sample Transactions for Cut-Off Testing
| Date of Transaction | Payment Reference | Amount (Currency) | Bank Posting Date | GL Posting Date | Cut-Off Compliance (Yes/No) | Remarks |
|---|---|---|---|---|---|---|
| [DD/MM/YYYY] | [Ref. No.] | [$XXX] | [DD/MM/YYYY] | [DD/MM/YYYY] | [Yes/No] | [Notes] |
| [DD/MM/YYYY] | [Ref. No.] | [$XXX] | [DD/MM/YYYY] | [DD/MM/YYYY] | [Yes/No] | [Notes] |
4. Findings & Observations:
- Transactions correctly recorded in respective periods: Yes/No
- Any misstatements or cut-off violations identified: Yes/No
- Adjusting journal entries required: Yes/No (Provide details if applicable)
5. Conclusion & Recommendations:
- Conclusion: [Summarize if cut-off procedures were followed correctly]
- Recommendations: [If errors were found, suggest corrective actions]
Comments