Auditors should consider the possibility of kiting if there are frequent deposits of round amounts.

Question

Quizplus · Accepted Answer

Frequent deposits of round amounts may indicate that the client is engaging in kiting, which is the fraudulent practice of creating artificial cash balances by transferring funds between bank accounts. Therefore, auditors should be vigilant and consider the possibility of kiting when they observe such transactions.

Auditors Should Consider the Possibility of Kiting If There Are