The general cash account is considered significant in almost all audits:
A) where the ending balance is material.
B) even when the ending balance is immaterial.
C) where either the beginning or ending balance is material.
D) except those of not-for-profit organisations.

Question

Quizplus · Accepted Answer

The general cash account is considered significant in almost all audits, even when the ending balance is immaterial. This is because cash is a highly liquid and easily misappropriated asset, and even small amounts can add up over time. Therefore, auditors will typically perform substantive procedures on the general cash account regardless of the balance size.

The General Cash Account Is Considered Significant in Almost All