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Identify the relevant assertions and risks of material misstatement that ate typically related to the cash...

Identify the relevant assertions and risks of material misstatement that ate typically related to the cash balance.
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Answer #1

Assertions for cash balances

Completeness and existence assertion: Review(inspect) cut off bank statement to verify reconciling items on banks reconciliation.

2.Inspect (review) bank confirmations

3.Inspect/ Reperform bank reconciliation

4. Prepare bank transfer schedule detects kitting.

5.Observe cash in hand.

risk of material misstatements:

Large amounts of cash on hand or processed

Segregation of duties or independent checks

oversight of senior management expenditures

oversight of employees respinsible for cash

Recordkeeping of cash

Physical safeguards of cash

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