Which of the following balance-related audit objectives typically is assessed as having high inherent risk for cash?
A)Existence
B)Cutoff
C)Detail tie-in
D)Presentation and disclosure

Question

Quizplus · Accepted Answer

Existence is typically assessed as having high inherent risk for cash because cash is a highly liquid asset that is susceptible to misappropriation or theft. As a result, auditors often set higher materiality thresholds and perform more substantive testing to validate the existence of cash balances.  Cutoff, Detail tie-in, and Presentation and disclosure are typically not assessed as having high inherent risk for cash.

Which of the Following Balance-Related Audit Objectives Typically Is Assessed