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.

---

Definitions:

Warm but Incompetent

A social perception wherein an individual is regarded as likable but not skilled or capable.

Jealousy

A complex emotion that often includes feelings of insecurity, fear, and anxiety over an anticipated loss of something of personal value, particularly in reference to a human connection.

Anger

An emotional state that varies in intensity from mild irritation to intense fury and rage, often resulting from a perceived wrong or injustice.

Personality and Culture

The study of how an individual's unique character traits are influenced by and interact with their cultural background.