Auditing cash and cash equivalents


Describe why there is a big emphasis placed on auditing cash and cash equivalents. Address the following:

· Why is this area more susceptible to fraud?

· How do the controls of traditional financial instruments differ from new types of marketable securities investments?

· What are some new risks that you should be concerned with?

· How is collateral figured out in these types of audits?

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Accounting Basics: Auditing cash and cash equivalents
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