Which of the following statements is true?
A) The risk that material misstatement will not be prevented or detected on a timely basis by the internal control can be reduced to zero by effective control activities.
B) Cash is more susceptible to theft than an inventory of coal because it has a greater inherent risk.
C) Detection risk is a function of the efficiency of an auditing procedure.
D) The existing levels of inherent risk, control risk and detection risk can be changed at the discretion of the auditor.

Question

Quizplus · Accepted Answer

Cash is more susceptible to theft than an inventory of coal because it is more liquid and easily transferable, which increases its inherent risk.

Which of the Following Statements Is True