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1) A junior auditor said: Comparing to other accounts, such as property, plant and equipment and accounts receivable, cash account contains less inherent risk. This
1) A junior auditor said: Comparing to other accounts, such as property, plant and equipment and accounts receivable, cash account contains less inherent risk. This is because there is no significant valuation issue with cash. Evaluate the statement and justify your answer. [2 marks]
(2) Use the fraud triangle to explain why revenue recognition is generally considered as having high fraud risk. [3 marks]
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