Which statement about surprise audits is correct?

Which statement about surprise audits is correct?

• A. Some audit steps, such as cash counts, are often done on a surprise basis.
• B. All audit steps are announced in advance.
• C. Surprise audits are prohibited.
• D. Cash counts are never performed without notice.

Answer: (A)

Surprise audits use unannounced checks to capture an accurate snapshot of assets and records, reducing the chance of manipulation. Cash counts are often performed without prior notice because money on hand must be verified promptly to ensure the recorded balance matches reality and to deter misappropriation. While some audit steps may be scheduled for efficiency, not every step is announced in advance, and surprise audits are not prohibited. The statement that cash counts are never done without notice contradicts the common practice of using unannounced cash verification to protect accuracy.

Surprise audits use unannounced checks to capture an accurate snapshot of assets and records, reducing the chance of manipulation. Cash counts are often performed without prior notice because money on hand must be verified promptly to ensure the recorded balance matches reality and to deter misappropriation. While some audit steps may be scheduled for efficiency, not every step is announced in advance, and surprise audits are not prohibited. The statement that cash counts are never done without notice contradicts the common practice of using unannounced cash verification to protect accuracy.