Sir,for PYQ Mar/June 2016 Q3 (b)(i) "cash transfer"
Extract from examiner answer:
"The amt which has been transferred represent 1.3% of total asset,which is material to the financial statements.The engagement,and particularly matters relating to cash transactions ,should now be considered as high risk and ....professional scepticism"
Will it be still considered high-risk area if the amt involved is not material to the FS?due to the nature of the fraud(money laundering)
Thank you.
Ask the Tutor ACCA AAA
York Co
6y ago#1If there are a lot of cash transactions then I suggest yes - i.e. what you have is a fraud risk factor which requires further investigation.
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