Which of the following would be used by the auditor to address the possibility of kiting?
A)Cut-off bank reconciliations.
B)Interbank transfer schedules.
C)Bank confirmations of account balances.
D)Bank confirmations of loan guarantees.

Question

Quizplus · Accepted Answer

Interbank transfer schedules are used by auditors to trace the movement of cash from one bank account to another, helping to identify any discrepancies that might indicate kiting, which is the fraudulent practice of exploiting the float to make use of non-existent funds.

Which of the Following Would Be Used by the Auditor