When the year-end cash balance is immaterial,audit procedures on the cash account are unnecessary.

Question

Quizplus · Accepted Answer

Even if the year-end cash balance is immaterial, auditors still need to perform basic cash count and reconciliation procedures to ensure accuracy and completeness of the cash account. This is because fraud or errors can occur at any level of materiality, and cash is a susceptible area for misappropriation. Additionally, the cash account may affect other accounts or financial statements. Therefore, audit procedures on the cash account are necessary regardless of materiality.

When the Year-End Cash Balance Is Immaterial,audit Procedures on the Cash