In Obtaining Evidence Concerning the Cash Balance, the Auditor Performs

Multiple Choice

In obtaining evidence concerning the cash balance, the auditor performs the following procedures: Obtain bank statements directly from bank, prepare bank reconciliation, and verify all reconciling items. In this case, it is most likely that:

A) detection risk is set at moderate to high.
B) detection risk is set at low to very low.
C) inherent risk is set at low.
D) control risk is set at moderate to low.
E) detection risk is set at minimum to moderate.