When auditing petty cash, the emphasis should be on testing controls over petty cash transactions rather than the ending balance in the account.

Question

Quizplus · Accepted Answer

The emphasis should be on testing controls such as authorization, documentation, and separation of duties, rather than just verifying the amount of petty cash on hand at the end of the period. This approach helps to identify any weaknesses in the system and prevent fraud or misuse of funds.

When Auditing Petty Cash, the Emphasis Should Be on Testing