Inherent risk for cash is usually assessed as high for which of the following reasons?
a. The volume of transactions flowing through cash accounts throughout the year makes the account more susceptible to error.
b. The cash account is more susceptible to fraud because cash is liquid and easily transferable.
c. The electronic transfer of cash and the automated controls over cash are such that if errors are built into computer programs, they will be repeated on a large volume of transactions.
d. Cash can be easily manipulated.
e. All of the above.
Answer: E
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