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

Question

Quizplus · Accepted Answer

The most difficult type of cash defalcation for the auditor to detect is one that occurs before the cash is recorded. This means that the fraudster takes the money before it is even recorded in the accounting system, making it more difficult for the auditor to detect any discrepancies. This type of fraud can occur, for example, when cash is collected but not immediately deposited or recorded, providing the opportunity for the fraudster to take some of the cash without it being noticed.

The Most Difficult Type of Cash Defalcation for the Auditor