The most difficult type of cash theft for the auditor to detect is that which occurs:
A) out of the balance kept in a cash register.
B) in amounts under $100.
C) before the cash is recorded.
D) after cash is recorded but before it goes to the bank.

Question

Quizplus · Accepted Answer

Theft before the cash is recorded is the most difficult type to detect because it is not reflected in the accounting records. Cash thefts that occur after cash is recorded but before it goes to the bank can be detected through bank reconciliations and other accounting procedures. Cash thefts from the balance kept in a cash register can be detected through regular cash counts and the use of control procedures. Cash thefts in small amounts under $100 can also be detected through proper control procedures and regular audits.

The Most Difficult Type of Cash Theft for the Auditor