The First Step in Auditing Petty Cash Is to Gain

question 32

Essay

The first step in auditing petty cash is to gain an understanding of the client's controls over petty cash.Describe some important controls a client should have over its petty cash fund.

---

Definitions:

Confidence

The feeling of self-assurance arising from one's appreciation of one's own abilities or qualities.

Pessimistic Attitude

A mindset characterized by the expectation that negative outcomes will generally prevail over positive ones.

Self-serving Bias

The common habit of a person crediting themselves for positive outcomes or successes but attributing failures to external factors.

Reciprocal Determinism

A concept in social cognitive theory that suggests an individual's behavior is both influenced by and influences their personal factors and the environment.