The internal audit department has been assigned to perform an operational audit of the treasury function. More specifically, the audit committee wants the auditor to focus on the following major areas:

1. Completeness and accuracy of recording cash receipts on a timely basis

2. Outgoing cash transfers

3. Cash management techniques, including short-term cash management and cash budgets

4. Use of financial derivatives and hedging techniques

Required

a. Identify the major risks that the auditor should address for each of the areas listed above.

b. How will the auditor go about identifying the risks associated with each of the major areas listed?

c. Develop an operational audit program to audit the cash management techniques.