Which One of the Following Is a Reason That the Cash

question 66

Multiple Choice

Which one of the following is a reason that the cash account is material to the auditor?

• A)The cash account is the culmination of transactions that are of little significance.
• B)The cash account is more susceptible to fraud than most other accounts.
• C)Many debt or loan agreements may be tied to dividend restrictions.
• D)Automated systems may have strong electronic controls built-in.

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Definitions:

Systemic Perspective

An approach that considers individuals, entities, or problems as parts of a larger, interconnected whole, emphasizing relationships and interactions.

Family's Boundaries

Family's boundaries refer to the rules and limits that define acceptable behavior and interactions within the family unit and between the family and external entities.

Cultural Variables

Elements that differ from one culture to another, influencing beliefs, behaviors, and values.

Homeostasis

A concept from systems theory referring to the tendency of a system, including biological and psychological systems, to maintain internal stability and equilibrium.