Handbook on Cash Examination-Chapter 4 92

Chapter 4
REPORT RESULTS AND
MONITOR
RECOMMENDATIONS

Chapter Overview

After the conduct of your examination, it is imperative that you

report its results. There will also be a need for you to monitor
the recommendations you made to ensure that they are
implemented.

In this chapter we will discuss what and when to write the

report, and we will review the guidelines in writing,. We will
also discuss why there is a need to monitor the
recommendations.

Learning Objectives

At the end of the session, you will be able to:

* Tell the contents of a cash examination report and when to

write it;
* Tell what are the five (5) Cs in writing and the guidelines in
developing paragraph; and
* Tell the need to monitor the recommendations.

Basic Concepts

WRITE THE REPORT

Why Write the Report?

The final output of the cash examination is the cash examination

report. It shall be submitted within ten (10) working days from
completion of the examination to the Regional Cluster Director

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(RCD)/Cluster Director (CD) who shall review it and advice the

cash examiners on the appropriate action to take. The RCD/CD
shall forward reports for examination showing shortages or
overages to the Regional Legal and Adjudication Office
(RLAO)/Legal and Adjudication Office (LAO).

The latter shall review the report, evaluate the findings and
conduct a more in-depth investigation when necessary. He/She
shall file the appropriate case with the Ombudsman when
warranted by the circumstances.

Contents of the Report

It shall be presented with the following parts:

 Transmittal letter

The TL shall be prepared by the examiner and signed by the

Director concerned. For a special examination, the report
shall be prepared by the team leader and signed by the COA
Chairman or his authorized representative.

 Flyleaf

 Memorandum for the COA Chairman thru the Director

concerned submitting the report on the audit of the cash and
accounts of accountable officer.

 Table of Contents

 Report Proper which shall have three sections:

Part I - Introduction
Part II – Findings &
Recommendations
Part III – Appendices

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Documents Included in the Appendices To Support The

Cash Examination Report:

The narrative report shall be supported by the following

documents:
 Report of Cash Examination (Gen. Form 74-A)
 Reconciliation Statement of Accountability
 Confirmation of Remittance/Deposits Verified by
Auditors
 Statement of Accountability for Accountable Forms
- Forms with Money Value
- Forms without Money Value
 Letter of Demand (in case of shortage)
 Reconciliation Statements of Depository Accounts
 Certificate of Subsidiary Ledger Balance by the
Accountant
 Supporting Schedules

GUIDELINES IN WRITING

5 Cs in Writing

 clearness
 completeness
 conciseness
 consistency
 correctness

Writing Should be Clear

 Write to express, not to impress
 Use words reader understands
 Explains technical terms when necessary
 Write short sentences

Writing Clearly

 Depends on careful, efficient planning

 Make logical, easy-to-follow arrangement of text material

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 Use transaction, whether by words and phrases to point

relations of parts of the report
 Use subject headings indicating both main divisions and
subdivisions of the material
 Give careful attention to lay out or display and other forms
of graphic presentation
 Apply the principle of parallelism
 Use concrete, simple language

Avoid

 Dangling modifiers
 Split infinitive, if it’s awkward
 Long introduction and descriptive passages
 Overuse of quotations
 Inaccurate expressions

Writing Should be Complete – Means comprehensive treatment

of the subject or problem at hand, and results in clear,
persuasive writing.

 Explain all points, if necessary

 State evidence precisely
 Show significance of the facts in relation to
problem
 Leave no room for misconception
 Attachments must also be completed

Writing Should be Concise

 Keep writing short and simple

 Express thoughts in few words completely and
clearly
 Use definite terms rather than general or abstract
words
 Cull the insignificant facts and treat the
significant points
 Check, criticize, rewrite a report before its final
typing

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Writing Should be Consistent

 Stick to one trend of thought at a time and follow

thoughts in agreement
 Follow a pre-determined pattern
 Maintain form and style throughout
 Typing details such as margins, indention, subject
headings, tabulation, annexes, etc.
 Mechanics of writing such as abbreviations,
hyphenation, numerals, spelling and punctuation
 Make comparison and reasoning through logical
conclusion
 Do not confuse the reader. Each section of the
material must be related with other parts of the report.

Writing Should Be Correct – Correctness is accuracy. It is the

result of competent judgment and conformity to an accepted
conventional standard.

Accuracy should begin with the first step of report preparation

and carried out to the final stage:

 Analyzing of the problem

 Planning the investigation
 Collecting data
 Interpreting the facts
 Reaching conclusions
 Formulating recommendations
 Outlining the material for presentation
 Writing, rewriting and finalizing reports
 Convincing the reader that
- the report is accurate
- the report is based on sound judgment and
- the recommendations need action.

Paragraph Development

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The Paragraph

 Can be a single emphatic word or a group of sentences

which develop a stated or implied idea.
 Is in many ways a miniature composition. In fact, some
compositions consist only of one paragraph.
 Marks the beginning of a new thought-unit.
 Indention signifies the beginning of a paragraph. Just as a
period makes the end of a declarative sentence, a paragraph
indention signifies that a group of sentences taken together
develops a thought.

Importance of Paragraphs

 It breaks up the monotony of a solid printed page. It is in

itself a devise agreeable to the eyes.
 It breaks up a composition into convenient units and
promotes the coherent treatment of a subject by attending to
one thing at a time.
 It has psychological value in that every new paragraph
marks a beginning. The reader feels the stimulation of
renewed that appears on the page.

The Qualities Of A Good Paragraph

The Quality of Unity

 In any creative work, the principle of unity is a very
important consideration. The mind likes to consider one
thing at a time.
 Unity demands that a paragraph is built along one design.
 Unity requires oneness of effect or impression.
 Build unity in a paragraph around a topic sentence.

The Quality of Emphasis

 It means stress.
 When we speak, we achieve emphasis by:

The Quality of our voice

 Our tone inflections and

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 Our gestures

The Quality of Coherence

 Means the quality of sticking together;
 Sentences are arranged to create an impression of an
orderly progression of thought;
 Each sentence adds something to the one preceding it and
the totality of sentences develops the central thought
adequately;
 Flow of thought is smooth and proceeds steadily forward;
 The reader’s mind does not have to leap over gaps or shift
backwards and forwards or rearrange and re-shift idea.

Devices In Writing Paragraphs

Proportion – Proportion requires that more details be given and

more space be devoted to more important ideas. In
presenting a subject, the writer naturally deals with ideas
of different degrees of importance. He/She should be able
to differentiate between main ideas and subordinates to
important ideas and fewer sentences to less important
ones.

Position – Position is largely a matter of arrangement. Arrange

ideas in the ascending order. The first and the last
impressions are the most strongly felt. Consequently, the
idea intended to stand out should be stated in the first
sentence of the paragraph or by the last sentence in the
paragraph. An interesting variation of this is the main
ideas as the first sentence and repeated in different words
in the last.

Repetition – The repetition of words, phrases, clauses or

sentences creates emphasis. The device of repetition has
the effect upon our consciousness. However, the writer
should be tactfully and use subtlety to avoid redundancy.

Parallel Construction – By parallel construction is meant a

similar arrangement of the principal elements of different
sentences. If an infinitive phrase or a gerund is used in

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one sentence, the same grammatical form should follow

in the next sentence. If a subordinate clause precedes the
principal clause, the same arrangement should be
followed.
Topic Sentence – A topic sentence is the central thought which
all sentences, in one way or another, seek to develop.
 It indicates the basic unity, the sense of oneness in
paragraph.
 It is the gist of the paragraph.
 It is the one-sentence summary of the thought
contained in the paragraph.
 It appears usually in the beginning of the paragraph.

MONITOR RECOMMENDATIONS

Much of the benefit from the cash examination will be from the
effectiveness of the recommendations made by the auditor/cash
examiner especially in addressing the weaknesses in the cash
management system. More important, of course, is the
appropriate action made by management on the shortages found
during the cash examination. The auditor should monitor the
actions of management to ensure that his/her recommendations
are implemented as required.

Summary

We said that the report is an integral part of any audit activity

hence a report on the results of the cash examination conducted
should always be made to appraise management of how the cash
management system works. We said that the report proper
includes the introduction, the findings and recommendations
and the appendices which include General Form 74-a among
others.

We also discussed the guidelines in writing focusing on the 5Cs

in writing and paragraph development. Finally we learned why
monitoring recommendations is important.

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