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You Are a Senior Auditor on a New Audit Client

question 164

Essay

You are a senior auditor on a new audit client.Your supervisor has asked you to audit the cash disbursements of the new client.You begin by gaining an understanding of the flow of transactions.You now need to identify what could go wrong.Identify at least three risks (what could go wrong) for paying the liability and recording cash disbursements.
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Definitions:

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for setting monetary policy, including interest rates, in the United States.

Board of Governors

The leading body of the Federal Reserve System, overseeing the Federal Reserve Banks and setting monetary policy.

Appointed

Designated or assigned to a position or role.

Open Market Operations

The purchase and sale of government securities by a central bank to control the money supply and interest rates.

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