A Major Consideration in the Audit of the General Cash

question 39

Multiple Choice

A major consideration in the audit of the general cash balance is the possibility of fraud. The auditor must extend his or her procedures in the audit of year- end cash to determine the possibility of a material fraud when there are:

• A) large cash balances at the end of the year.
• B) large cash receipts and disbursements during the year.
• C) inadequate internal controls.
• D) no imprest accounts used for payroll.

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Definitions:

Dismissing Attachment

A pattern of detachment where an individual maintains more independence and less emotional closeness in relationships.

Fearful Attachment

A type of attachment characterized by a desire for closeness combined with a fear of being hurt or abandoned.

Agreeableness

A personality trait characterized by altruism, trust, compassion, and a cooperative attitude toward others.

Interpersonal Relationships

Connections or associations between two or more people that can vary in duration and significance.