Which one of the following types of cash defalcation is LEAST likely to be detected by an auditor?
A) That which involves EFT
B) That which occurs before the cash is recorded
C) Lapping
D) That which occurs after the cash is recorded but before it is deposited in the bank

Question

Quizplus · Accepted Answer

Defalcation that occurs before cash is recorded will not be detected by an auditor because there will be no record of the cash ever existing. The other three types of defalcation involve cash that has already been recorded, making it more likely to be detected by an auditor through external confirmations or other audit procedures.

Which One of the Following Types of Cash Defalcation Is