A Major Consideration in the Audit of the General Cash

question 92

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

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Definitions:

Gastrocnemius

A major muscle located in the back part of the lower leg, involved in walking, running, and jumping.

Calf

The muscular back part of the lower leg between the knee and ankle, or a young bovine animal.

Leg

A limb on a human or animal's body that supports movement and weight, extending from the hip to the foot.

Contracts

Legally binding agreements between two or more parties that outline obligations, rights, and terms to which the parties have agreed.