<p>Which one of the following is a reason that the cash account is material to t

Question

<p>Which one of the following is a reason that the cash account is material to the auditor?<br />Question 1 answers<br />&#160;&#160;&#160; a. &#160;&#160;&#160; The cash account is the culmination of transactions that are of little significance.<br />&#160;&#160;&#160; b. &#160;&#160;&#160; The cash account is more susceptible to fraud than most other accounts<br />&#160;&#160;&#160; c. &#160;&#160;&#160; Many debt or loan agreements may be tied to dividend restrictions<br />&#160;&#160;&#160; d. &#160;&#160;&#160; Automated systems may have strong electronic controls built-in<br /><br /><br /></p>

Explanation / Answer

Cash Account is material to the Auditor because : The Cash Account is more susceptible to fraud than most other accounts .

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