Chechel E.V., Burlakova O.N., Kalinichenko A.V.
Oles Honchar Dnipropetrovsk National University, Ukraine
PROBLEMS OF ACCOUNTING AND AUDITING OF CASH ASSETS IN COMMERCIAL BANK
The role of organization of accounting money in the current economic conditions is the cash assets or available cash, which are constantly at the disposal of the bank, forms an integral part of the control functions of current assets.
The value of the account money is targeted organizing primary data collection, timely processing, choice of background information, as well as enhance and improve operational control over compliance with regulations.
At the present stage of market economy development of virtually the all financial transactions generates a cash flow in the form of income or expenditure. In the context of these events the main task of accounting is lawful, proper and timely processing of all transactions that take place in cash. Considerable importance is the control for the presence and movement of funds and the validity of the bank documents.
Cash and cash equivalents are assets that are readily convertible to known amounts of cash on demand and which are subject to insignificant risk of changes in value.
In order the bank was able to effectively use the money, we need to organize their records and monitor their traffic.
Cash transactions are carried out by the operating cash department of the bank.
It should be noted that operating cash departments are divided according to the functions they perform. It's quite convenient, and moreover such distribution first allows to check the registration details of all transactions, and secondly facilitates the work of the cashier, and this leads to a decrease in errors. As for proposals, we offer to stop work of cash department after removal of the cash. It will avoid exceeding the limit of cash and gives time to conduct all the transactions. Also, in order to increase control it should implement a system of video surveillance.
The issuance of cash from bank cash to businesses, organizations, institutions for cash checks, individual borrowers who received loans in the bank, depositors, pensioners and individuals who received cash from the current account is for expenditure cash orders.
Surplus money in the operating cash of commercial banks is transferred to the circulating cash the institutions of the National Bank of Ukraine, as required in cash, they are supported from last.
Cash transactions in foreign currencies are recorded in a double assessment – at par and in UAH equivalent at the official exchange rate at the date of the transaction. However, we propose to appropriate and introduce additional analytical accounts in the context of national and foreign currency. It should be noted that should distinguish bought and sold currency in accounting for foreign currency. And also it be reflected it on different accounts. This will make some information about cash turns easier, and help to analyze and make effective management decisions and reduce losses from exchange differences.
Accounting system should be organized so that at any moment we can check for cash.
All commercial banks must have a correspondent account in the National Bank of Ukraine.
Movement of non-cash assets is due to the national electronic payment system, it is quite easy. Also it greatly reduces the time spent. But we can speed up the calculations by setting the direct payment system between banks branches and regional offices of the NBU.
NSEP is a two-tier system accounting system. This means that accounting operations conducted simultaneously on two separate accounts: the correspondent and maintenance.
Today, audit is the most truthful and accurate test of financial and business entities. The views and opinions of the auditors are able to promptly notify the enterprise of wrong accounting and financial reporting.
Effective system of internal audit is an important part of the bank, and helps it to hold its competitive edge in the market. Each bank should have its own internal mechanism that protect it from potential errors, irregularities and losses.
The high quality of information is the base of reliable audit.
While checking the original documents the auditor may verify the truthfulness and accuracy of information that be a strong basis for the further audit and minimizes the distortion of information in financial statements. The disadvantages of using primary documents to audit the funds, lead to large expenditures of time. Therefore, we propose to introduce an automated system audit.
The system of interaction of internal audit of the bank and its management should operate as a factor to overcome the identified violations and promote analytical procedures for conducting internal audits.
Literature:
1. On Auditing: The Law of Ukraine of 22.04.1993, № 3125–XII // The laws of Ukraine. T.5. – K.: Institute of Legislation of the Verkhovna Rada of Ukraine, 1996. – S. 103-112.
2. Instructions on the organization and implementation of foreign exchange transactions in Ukraine // Resolution of the National Bank of Ukraine dated December 12, 2002 № 502 (With amendments) [electronic resource]. — Mode of access: http://www.liga-zakon.net
3. Instruction on Cashless Payments in Ukraine in national currency. Approved by the NBU Board of 21.01.2004. № 22 (with amendments) [electronic resource]. —Mode of access: http://www.liga-zakon.net
4. Rules of accounting transactions using payment cards in banks of Ukraine. Approved by the Board of Bank of 8.04.2005 № 123 (with amendments) [electronic resource]. — Mode of access: http://www.liga-zakon.net