Which of the following is one of the better auditing techniques that might be used by an auditor to detect kiting between intercompany banks?
A)Review the composition of authenticated deposit slips.
B)Review subsequent bank statements received directly from the banks.
C)Prepare a schedule of bank transfers.
D)Prepare year-end bank reconciliations.

Question

Quizplus · Accepted Answer

Preparing a schedule of bank transfers is an effective auditing technique to detect kiting because it helps the auditor trace the timing and the recording of deposits and withdrawals across different bank accounts, revealing any discrepancies that might indicate kiting.

Which of the Following Is One of the Better Auditing