Under What Circumstances Would an Auditor Prepare a Proof of Cash

question 31

Multiple Choice

Under what circumstances would an auditor prepare a proof of cash?

• A)When the client has material internal control weaknesses in cash.
• B)When control risk is set at minimum.
• C)When inherent risk in cash is considered to be low.
• D)When an enterprise resource system is in use for processing of cash transactions.

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Definitions:

Anticipating Objections

The practice of foreseeing potential objections or concerns from a counterpart in a negotiation or discussion and preparing responses in advance.

Reader Attention

The focus or concentration that a reader gives to written material, influenced by the material's relevance, clarity, and interest.

Benefits

Benefits refer to the advantages or perks provided to employees beyond their basic salary, such as health insurance, retirement plans, and paid time off.

Indirectly

A manner of conveying messages or taking action that is not straightforward but rather via implication or through an intermediary.