The Most Difficult Type of Cash Theft for the Auditor

question 54

Multiple Choice

The most difficult type of cash theft for the auditor to detect is that which occurs:

• A) out of the balance kept in a cash register.
• B) in amounts under $100.
• C) before the cash is recorded.
• D) after cash is recorded but before it goes to the bank.

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Definitions:

Current Liability

A financial obligation or debt that is due within one year or within the normal operating cycle of a business.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the company’s financial condition.

Current Assets

Current assets are resources that a company expects to convert into cash or use up within one year, including cash, inventory, and receivables.

Classified Balance Sheet

presents the financial position of a company by categorizing assets, liabilities, and equity into subcategories like current and non-current.