Which of the following is an effective audit procedure that an auditor might use to detect kiting between intercompany banks?
A) Review the composition of authenticated deposit slips.
B) Review subsequent bank statements.
C) Prepare a schedule of the bank transfers.
D) Prepare a year-end bank reconciliation.

Question

Quizplus · Accepted Answer

Preparing a schedule of bank transfers helps the auditor identify any transfers that are recorded in both banks at the same time, which is indicative of kiting.

Which of the Following Is an Effective Audit Procedure That