Although the Auditor Adopts a Predominantly Substantive Approach to the Audit

question 48

Essay

Although the auditor adopts a predominantly substantive approach to the audit of cash balances, an understanding of procedurfor maintaining accountability over cash is necessary for the design of substantive tests of details. Name and describe the two main procedurfor internal control of cash.

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Definitions:

Logical Structure

Logical Structure refers to the conceptual organization and framework of an entity, such as a database or computer program, independent of its physical organization.

Democratic

A system or process that is based on principles of equality and fairness, often involving collective decision-making.

Sales Quotas

Target sales figures assigned to sales teams or individuals to achieve within a specific time period.

Departmentalization

The organizational practice of dividing a business into separate departments, each handling specific tasks or functions.