Julie is designing the audit program for cash for her client Onslow Services Ltd. (Onslow). Onslow is a property management services company. It deals with six major clients and several smaller clients, each with a number of properties for rent in the central business district of the city. Onslow finds tenants, conducts credit checks, negotiates tenancy agreements, and arranges cleaning and maintenance services for each property. It has a staff of 15 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 Onslow's bank account. After the relevant fees are deducted, Onslow remits the rents monthly to the property owners. These transactions pass through a bank account kept solely for this purpose. In addition, Onslow maintains a trust account (for any client moneys held on trust) and a general operating account (for salaries and other expenses).
Required
(a) Advise Julie about the controls over cash that should be maintained by Onslow.
(b) Assuming these controls are present and operating effectively, suggest the appropriate substantive procedures for Onslow's cash balance.