When Assessing Risks Affecting Cash

question 135

Multiple Choice

When assessing risks affecting cash,

• A) if a business defers preparing bank reconciliations for long periods, the value of the control is reduced and may affect the auditor's assessment of control risk for cash.
• B) most companies are likely to have significant client business risks affecting their cash balances.
• C) there is a low inherent risk for the existence and completeness objectives for cash.
• D) all of the above are accurate statements.

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Definitions:

Slave Insurrection

An act of rebellion or revolt by enslaved individuals seeking to gain freedom from bondage and oppression.

Harsh New Laws

Recent legislation that is particularly severe, strict, or oppressive in nature.

1712 and 1741

Reference years to notable events; notably, 1712 references the New York Slave Revolt of 1712, and 1741 may refer to the New York Conspiracy of 1741, both highlighting slave resistance.

Colony of Carolina

Colony of Carolina was one of the British colonies in North America, founded in the 17th century, which later split into North Carolina and South Carolina, playing significant roles in the economic and social development of the future United States, particularly in terms of colonial and antebellum slavery.