Under which of the following circumstances would an auditor be most likely to intensify an examination of a $1,000 petty cash fund maintained on an imprest basis?

Question

Quizplus · Accepted Answer

If the reimbursement of the fund from the general cash account occurs twice or more each week, it could indicate that the petty cash fund is being used for purposes other than small and incidental purchases, which violates the imprest system. This may lead to an intensification of the auditor's examination to ensure the fund is being properly maintained. The other options may also raise concerns, but they are not as significant as the frequency of reimbursement from the general cash account.

Under Which of the Following Circumstances Would an Auditor Be