Question: The auditor should control and verify all liquid assets simultaneously to prevent: (1) Unrecorded disbursements. (2) Conversion of assets to conceal a shortage. (3) Unauthorized

The auditor should control and verify all liquid assets simultaneously to prevent:

(1) Unrecorded disbursements.

(2) Conversion of assets to conceal a shortage.

(3) Unauthorized disbursements.

(4) Embezzlement.

The above questions deal with discovering fraud in auditing year-end cash. Choose the best response.

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