The Cash Account Is Material to the Auditor for Which

question 26

Multiple Choice

The cash account is material to the auditor for which of the following reasons?

• A)The cash account is the culmination of a large volume of transactions.
• B)The cash account is not as susceptible to fraud as most other accounts.
• C)Many debt or loan agreements may have collateral agreements tied to long-term assets.
• D)Automated systems might possess strong internal controls.

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Definitions:

Socialized Power Motivation

The drive to influence or control others within the norms and rules of societal conduct.

High Energy Level

A state of having abundant vitality or physical/mental energy, which enables high productivity or activity.

Stress Tolerance

The ability of an individual to remain calm and perform effectively under pressure or during challenging circumstances.

Social Identities

An individual's self-concept derived from perceived membership in social groups, such as cultural, ethnic, or organizational identities.