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Commerce · Q271

Auditing

Graduate and Post Graduate · Commerce · question 271

Q271

The balance of cash in often between one to five per cent of total assets. Tick the most appropriate statement with regard to verification of cash in context of this:

A.
Cash in always material as materiality is qualitative concept
Answer
B.
No audit of cash is needed when, in auditor's opinion, cash is immaterial. Materiality is a relative concept
C.
The cash balance need only be audited if the balance is in overdraft
D.
Cash is to be verified if control risk is assessed as high

Answer: Option A

Solution

Answer: Option A
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