A practical and effective audit procedure for the detection of lapping is:

Question

Quizplus · Accepted Answer

Lapping occurs when an employee steals cash received from one customer and then uses cash received from another customer to cover up the theft. By comparing recorded cash receipts in detail against items making up the bank deposit as shown on duplicate deposit slips validated by the bank, an auditor can detect any discrepancies or irregularities in the timing or amounts of deposits, which could indicate lapping. The other choices may be useful audit procedures, but they are not specifically designed to detect lapping.

A Practical and Effective Audit Procedure for the Detection of Lapping