A general rule that should be followed when developing control procedures for a company's assets is:
A)The cost of the control procedure will likely exceed the procedure's benefit
B)The procedure should not be designed and implemented unless an asset's cost exceeds $5,000
C)The more liquid an asset is, the greater the risk of its misappropriation
D)The procedure should not be designed and implemented in situations where a risk assessment has been previously performed

Question

Quizplus · Accepted Answer

The more liquid an asset is, the greater the risk of its misappropriation. This is because liquid assets, such as cash, are easier to divert without detection compared to less liquid assets.

A General Rule That Should Be Followed When Developing Control