A risk of fraud is not associated with petty cash funds because of the small amounts of money involved.

Question

Quizplus · Accepted Answer

Petty cash funds are vulnerable to fraud and theft due to the small amounts of money involved. Without proper controls and monitoring, individuals could take advantage of the fund and misappropriate the money for personal use. Therefore, it is essential to establish strict policies and procedures for managing petty cash funds to mitigate the risk of fraud.

A Risk of Fraud Is Not Associated with Petty Cash