An audit procedure that compares the name,amount,and dates shown on remittance advices with cash receipts journal entries and with related duplicate deposit slips would be effective in detecting
A)kiting.
B)lapping.
C)illicit write-offs of customers as uncollectible accounts.
D)sales without proper credit authorization.

Question

Quizplus · Accepted Answer

This audit procedure compares the information on remittance advices with cash receipts journal entries and duplicate deposit slips. This helps to ensure that all cash payments received from customers have been properly recorded and deposited, and it can help to detect lapping, which is the fraudulent practice of applying payments from one customer's account to another customer's account to cover up a theft or embezzlement. The other answer choices do not specifically relate to this audit procedure.

An Audit Procedure That Compares the Name,amount,and Dates Shown on Remittance