Can you exemplify the instances of suppression or non disclosure of cash receipts in the Accounting process which an auditor need pay attention to?

(1) By not recording the receipt of sale of a casual nature (say: Sale of scrap, sale of old newspapers etc)

(2) By omitting to record cash donations received by no profit making charitable unit

(3) By suppressing the cash sales by not recording them or by treating the cash sales as credit sale

Non-disclosure of cash balances, which have legal restrictions that prevent them from use

  Often happens that some of the cash balances and cash equivalents held by the facility is available for use by the group. Examples include cash balances and cash equivalents to one located in one of the countries affiliated companies that impose legal restrictions make those balances are not available for use for public purposes by the head office or one of the other subsidiaries.

Agreed with all Champs.

Just to add two more items where scope of non disclosure of cash receipts such as Sale proceeds from fully depreciated or written off fixed assets and recovery made by outsourced recovery agents from fully written off loans or debts.

Cash is the most vulnerable instrument for fraud and misappropriation if its remain unaccounted.

I agree with Mr. Mujtaba answer

agreed with mr james

Agreed with Mr.Mujtaba Ali.

The following could be taken as some of the examples of Suppression or non disclosure of Cash receipts:

1. Misappropriation and non recording cash transaction in the Cash Account.

2.Lesser amount entered in the counterfoil for the actual and misappropriation of the difference.

3.Not recording the sale of casual nature--sale of scrap, news papers etc.

4. Non recording of donations received on behalf of charitable institutions which are handed over trust and casual basis without obtaining adequate receipts.

5. By discounting the Bills receivable in separate accounts and withdraw money; but the bills receivable account not changed and remain as it is and shown as bills outstanding on hand.

6.Misappropriating the cash received from debtors with the help of falsified receipts, at the same Customer account is credited with equivalent amounts from Bad debts account, Discount account, Sales returns account etc.

7."teeming and lading" or "lapping process". i.e. subsequent credits are accounted, original allowed to lag and credited to adjust finally. It could be from the same account or a series of accounts similarly adjusted.

8. Suppressing cash sales by not recording it and or treat them in fictitious credit sale accounts.

9. Misappropriating the proceeds of the sales on approval basis, and treat them as non approved and returned.

10. under-casting of the Cash book-receipt side and subsequently adjusted by overcasting.

Agreed with the answer, Mr. Mir Mujtaba Ali

a) Teaming and lading.

b) High discount paid to customers instead of accounting cash receipts.

c) bad debt written off.