During the audit period if you find out many risks around cash situation how can u advise in your report ?

First we should identify the kind of risk we are about. we shall not miss that there is an inherent risk for cash specifically so if the case is all about controls, e.g. segregation of duties, we should mention it in our report. But if the case is that we skepticism a fraud occurrence, then we should amend our procedures to an extend of obtaining sufficient evidence, in that case report could be qualified.

There is always an inherent risk involved with this type of asset. However, we should, first, look at the materiality level of cash balance/transactions. If the cash balance/transactions are material means any error/mistake in cash may have the impact of changing the opinion of the auditor, the auditor may qualify the report if the risks around cash are high and the probability of occurrence is also high. If, the case is not so, the auditor may highlight the situation by including this in the areas of concern.