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:

Lentivirus

Lentivirus is a genus of retroviruses associated with long incubation periods, known to infect host cells and integrate into their DNA, including human immunodeficiency virus (HIV).

Retrovirus

An RNA virus that uses reverse transcriptase to produce a DNA intermediate, known as a DNA provirus, in the host cell. See DNA provirus.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system, leading to AIDS if not treated.

Monophyletic

Referring to a group of organisms that consists of all the descendants of a common ancestor.