Which of the following balance-related audit objectives typically is assessed as having high inherent risk for cash?

Question

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Existence of cash is typically assessed as having high inherent risk because cash is a highly liquid asset that is vulnerable to theft and misappropriation. Therefore, auditors must exercise a high degree of professional skepticism when verifying the existence of cash balances. Cutoff, detail tie-in, and presentation and disclosure objectives are also relevant to the audit of cash, but they do not necessarily have high inherent risk associated with them.

Which of the Following Balance-Related Audit Objectives Typically Is Assessed