The auditor should trace bank transfers using a bank transfer schedule primarily to determine if:

Question

Quizplus · Accepted Answer

Kiting involves artificially inflating the balance of a bank account by making checks or wire transfers between accounts to make it appear as if there are more funds available than there actually are. Tracing bank transfers helps auditors identify if cash balances have been overstated due to such activities.

The Auditor Should Trace Bank Transfers Using a bank