The ease with which cash can be stolen is most related to which of the following risks?
A)Control risk.
B)Inherent risk.
C)Detection risk.
D)Liquidity risk.

Question

Quizplus · Accepted Answer

The ease with which cash can be stolen is related to inherent risk, which refers to the susceptibility of an account or balance to a material misstatement. In this case, the ease with which cash can be stolen increases the likelihood of a material misstatement occurring, making it a higher inherent risk. Control risk refers to the risk that a material misstatement will not be prevented, detected, or corrected by a company's internal controls. Detection risk refers to the risk that an auditor will not detect a material misstatement. Liquidity risk refers to the risk of not being able to meet financial obligations. None of the other choices are related to the ease of cash theft.

The Ease with Which Cash Can Be Stolen Is Most