In working with the bank reconciliation and the subsequent period's bank statement, the auditor finds that a prior-period cheque was not on the reconciliation as an outstanding cheque. This may be an indication of:
A) lapping.
B) kiting.
C) window dressing.
D) an attempt to conceal a cash shortage.
Correct Answer:
Verified
Q1: The account balance audit objective, "Year-end transfers
Q2: Which of the following would not normally
Q3: Audit tests to detect lapping involve which
Q5: The practice where a cheque is paid
Q6: The control of all funds during the
Q7: During the count of cash on hand,
Q8: If the petty cash account is tested
Q9: Which of these combinations is a
Q10: The starting point for verifying cash balances
Q11: The auditor should trace bank transfers
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