A proof of cash:

Question

A proof of cash:

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A proof of cash is a tool that compares the cash balance in the accounting records to the actual balance in the bank account. This can be used to test the transactions process, ensuring that all cash received and disbursed is properly recorded in the accounting system. While a proof of cash can be helpful in detecting lapping (a fraudulent practice where an employee steals a payment from one customer and covers it up by applying a payment from another customer to the first customer's account), it is not always foolproof and cannot be relied upon to detect all instances of lapping. The use of a proof of cash is not required by GAAS, but it is a commonly used audit procedure.

A Proof of Cash