Which of the following balance-related audit objectives typically is assessed as having high inherent risk for cash?
A) existence
B) cutoff
C) detail tie-in
D) presentation and disclosure

Question

Quizplus · Accepted Answer

Cash is a highly liquid asset and is therefore susceptible to fraud and misappropriation. Ensuring that cash exists is therefore a crucial balance-related audit objective with high inherent risk. Cutoff, detail tie-in, and presentation and disclosure are also important objectives, but they do not necessarily have higher inherent risk for cash than for other balance sheet items.

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