B is corrent because the liquidity of these assets makes substitution (changing the form of the assets and thereby double counting them) possible.
A is incorrect because deposits-in-transit are often not on hand during the cash count.
C is incorrect because an irregular endorsement of securities is more limited, and therefore less complete.
D is incorrect because although the CPA will certainly attempt to avoid theft, such theft is unlikely at the time of the cash counting.
|
