Reference no: EM132958934

You are the audit senior designing the audit programme for cash for a new client. The client is a property management services company and deals with six major clients and several smaller clients, each with several properties for rent in the central business district of the city.

• The client finds tenants, conducts credit cheques, negotiates tenancy agreements, and arranges cleaning and maintenance services for each property.

• The client has 15 staff and operates from an office in the city.

• Other than a small petty cash amount, no cash is kept on the premises because rents are directly deposited by the tenants to the client's bank account. After the relevant fees are deducted, the client remits the rents monthly to the property owners.

• These transactions pass through a bank account kept solely for this purpose.

• In addition, the client maintains a trust account (for any client's money is held on trust) and a general operating account (for salaries and other expenses).

Required

Problem (a) Provide an outline of five (5) controls over cash that should be maintained by the client.