Because cash is the most desirable asset for people to steal, it has a higher
A) control risk.
B) inherent risk.
C) detection risk.
D) liquidity risk.

Question

Quizplus · Accepted Answer

Inherent risk refers to the susceptibility of an account balance or class of transaction to material misstatement, assuming there are no related internal controls present. Theft of cash is a common and significant inherent risk, as cash is easily stolen and difficult to trace.

Because Cash Is the Most Desirable Asset for People to Steal