Final answer:
The asset most susceptible to theft and fraud from an internal control standpoint is cash.
Step-by-step explanation:
The asset most susceptible to theft and fraud from an internal control standpoint is cash. Cash is a highly liquid asset that can be easily stolen and used for fraudulent activities. For example, an employee could manipulate cash transactions or steal cash from the company's cash register.
Other examples of assets that are susceptible to theft and fraud include inventory and accounts receivable. Inventory can be stolen or misappropriated, and accounts receivable can be manipulated or embezzled.
To protect against theft and fraud, companies implement internal controls such as segregation of duties, regular audits, and strict cash handling procedures.