Kiting may be detected by the auditor by preparing a bank transfer schedule of all client accounts.

Question

Quizplus · Accepted Answer

By preparing a bank transfer schedule of all client accounts, the auditor may be able to detect kiting, which is a fraudulent practice of creating artificial balances in bank accounts. The schedule helps the auditor identify transfers between accounts and any delays or abnormalities in the timing or frequency of the transfers, which can be clues of kiting. Therefore, option A is correct.

Kiting May Be Detected by the Auditor by Preparing a Bank