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:

Sensation Seeking

The trait of searching for experiences and feelings that are varied, complex, novel, and intense.

Zuckerman

Refers to Marvin Zuckerman, a psychologist known for his research on sensation seeking and its influence on personality and behavior.

Questionnaires

A set of printed or digital questions used for gathering information from respondents for research purposes.

Locus of Control

The degree to which people believe they have control over the outcome of events in their lives, as opposed to external forces having that control.