The transfer of money from one bank account to another and improperly recording the transfer so that the amount is recorded as an asset in both banks is referred to as kiting.

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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