Which of the following statements is true?
A)The risk that material misstatement will not be prevented or detected on a timely basis by internal controls 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 inherently more susceptible to theft than inventory items such as coal because it is more liquid and easily transferable, making it a more attractive target for theft.

Which of the Following Statements Is True