Listing all bank transfers made a few days before and after the balance sheet date and tracing each to the accounting records for proper recording is a useful approach to test for
A) kiting.
B) lapping.
C) income smoothing.
D) channel stuffing.

Question

Quizplus · Accepted Answer

Listing all bank transfers around the balance sheet date and ensuring they are properly recorded helps detect kiting, which involves manipulating the timing of recording cash receipts and disbursements to inflate bank balances.

Listing All Bank Transfers Made a Few Days Before and After