Referat tekshirdi: Oblomurodov N. Bajardi: Umarov F. Plan: Audit Cash

Why Cash is High-Risk
There are many reasons why cash is usually considered a high-risk asset. One important reason is probably due to cash is an essential asset where it usually has more transactions comparing to any other asset in the company. Other reasons may include its transferability, liquidity, covenant issue, and theft.
In general, the company with many cash transactions is usually considered risky. This is due to cash is an asset that may be misstated due to many reasons, such as unauthorized use, posting in the wrong account and wrong accounting period.

Also, cash is the asset that is most prone to theft comparing to the other assets on the balance sheet. As a result, cash may be manipulated or stolen by the personnel that has high authority over cash account.

Below are the five reasons why cash is high-risk comparing to other assets:

Why Cash is High-Risk
Volume of Activity	In general, the cash transactions during the accounting period are usually big comparing to other accounts in the company. This due to the cash transactions themselves come from many forms of the business activities, including cash received from sales, cash received from receivables settlement, cash payment for expenses, cash payment for inventory, cash paid for payables settlement, and cash paid for debt settlement and interest. As a result, the big volume of transactions involving cash that flow through the account during the accounting period makes it more susceptible to error than other accounts in the financial statements. This may be the most important reason why cash is high-risk as this reason alone may lead to other risks occurred to other reasons below.