Q. The balance of cash in often between one to five percent of total assets. Tickthe most appropriate statement with regard to verification of cash in context of this (Solved)
1. Cash in always material as materiality is qualitative concept
2. No audit of cash is needed when, in auditor’s opinion, cash is immaterial. Materiality is a relative concept
3. The cash balance need only be audited if the balance is in overdraft
4. Cash is to be verified if control risk is assessed as high
- a. Cash in always material as materiality is qualitative concept