Understatement of Cash and Cash Equivalents
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: MisstatementThe reported cash balance was not accurate. Some checks were never recorded, petty cash was not replenished correctly, and stale checks were still listed as liabilities instead of being returned to cash.
Why It Matters
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Original Audit Finding Excerpt
"a) Net understatement of Cash and Cash equivalent due to: • Unrecorded manager’s check issued by Land Bank of the Philippines; • Erroneous entries and non-replenishment of Petty Cash Fund; and • Unreleased/stale checks not reverted to cash account. 2,393,945.14"