Explain high risk of misstatement


You are auditing cash for your client Moonbeam, Inc. In meeting with the CFO during the planning stages of the audit, she indicated that there was a high risk of misstatement due to fraud in the cash account, given the lack of proper segregation of duties. As the auditor, what 3 tests could you perform to detect fraudulent activities in the cash account?

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Accounting Basics: Explain high risk of misstatement
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