System work initiated by cash questionnaire;

              Bulletin HASKINS & SELLS 35
IF only an accountant would view his
engagement with the same intensive
interest that he would use were the
client his own, he should be able to find
many quite unexpected opportunities for
rendering service to the client that were
not anticipated when the engagement was
written.
The personal satisfaction that may be
derived from rendering constructive as­sistance
to a client may not be any greater
than that from completing an audit in a
business-like and efficient manner, but it is
very likely that the client will remember the
former long after he has forgotten the
latter. A perfect audit is accepted as a
matter of course.
If an office be well organized, it is effi­cient,
and if it is not efficient it may be in
need of adjustments with respect to its
routine, or assignment of duties to the
personnel. Certainly accountants are com­petent
to judge as to the relative efficiency
of the client's staff, and they should also be
competent to make helpful suggestions with
respect to its increased effectiveness.
There could hardly be found any subject
in which the interest of the management
could be aroused more quickly than the
accounting for cash. The results disclosed
by the audit of cash and the investigation
as to the method of its accounting, afford
a natural and accessible avenue to the
management for the discussion of possible
improvements in the office routine and
methods. Furthermore, the accountant
may consider it almost certain that if
there be need of tightening up in the han­dling
of cash there is also need of tightening
up in the accounting for receivables, in­ventories,
plant repairs, pay-roll, or other
matters.
The accountant may not have complete
evidence as to the client's need with respect
to any of these subjects except cash, but
here the information should be complete
and convincing. By pressing upon the
attention of the management the facts
ascertained concerning the cash situation,
it is highly probable that an opportunity
will develop to correct the situation. In
so doing, further information more obscure
than cash, can be obtained and the scope of
the accountant's service thereby enlarged.
It must be apparent that neither the
firm nor the accountant in charge can take
much satisfaction in a report that states
that the client's system is in need of
adjustment, unless some effort is being
made toward accomplishment of the needed
changes. Each accountant should feel a
personal responsibility to exhaust all avail­able
means to correct undesirable condi­tions
existing in a client's accounts and
office routine; he should consider the con­tinuance
of such conditions as a reflection
on both himself and the firm.
If the accountant, upon completing the
cash questionnaire, finds that his answer
to the question, "Does the situation permit
of irregularities?" must be "Yes" and the
treasurer, or other official, after discussion,
admits the accuracy of the accountant's
disclosures, stating that he has seen no
practical remedy, the client would be ill-served
if no plans for improvement were
offered.
In order to do this the accountant should
be very sure of his facts and have specific
information as to the nature and the extent
of the system deficiencies under discussion.
This assurance is obtained by applying the
instructions of technical procedure thus far
outlined pertaining to cash audits. He
should also be well grounded in the basic
principles involved and know the essentials
of systematic organization using internal
checks and controls.
There are certain broad principles which
govern the accountant in making his sug­gestions
for adjustment and which are
generally adaptable.
System Work Initiated By Cash Questionnaire
By R. A. DALRYMPLE