The audit procedure which requires the auditor to record the last check number used on the last day of the year and subsequently trace to the outstanding checks and the cash disbursements records is performed to satisfy the audit objective of:

A cash audit is a way to ensure the accuracy of cash transactions, and is done by checking the opening balances and transactions of the year.  Here are some steps for auditing cash balances: Review cash receipts and payments: This includes the cash book and general ledger. Reconcile cash balances: This includes comparing the balances at the beginning and end of the period. Trace cash flows: This includes to the income statement and balance sheet. Evaluate cash flow: This includes its reasonableness and completeness. Test mathematical accuracy: This includes the presentation of the cash... Show more

A cash audit is a way to ensure the accuracy of cash transactions, and is done by checking the opening balances and transactions of the year. 

Here are some steps for auditing cash balances:
Review cash receipts and payments: This includes the cash book and general ledger.
Reconcile cash balances: This includes comparing the balances at the beginning and end of the period.
Trace cash flows: This includes to the income statement and balance sheet.
Evaluate cash flow: This includes its reasonableness and completeness.
Test mathematical accuracy: This includes the presentation of the cash flow statement. 

Other procedures include:
Comparing to prior years' cash balances
Identifying receipts of the next accounting period
Investigating long outstanding cheques
Calling confirmation: This includes ensuring that the bank confirms all balances and related items
Testing the translation process: This includes independently calculating the cash balance using the exchange rate in effect at 12/31 

Some common controls over cash include: Segregation of duties, Authorization, and Regular bank reconciliation. 

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