Which of the following is not a procedure that can be performed on canceled checks in an effort to detect defalcations?
A) Compare the endorsements on checks with authorized signatures.
B) Scan endorsements for unusual or recurring second endorsements.
C) Examine voided checks to be sure they haven't been used.
D) Examine the payroll records in subsequent periods to determine that terminated employees are no longer being paid.

Question

Quizplus · Accepted Answer

Examining payroll records in subsequent periods to determine that terminated employees are no longer being paid is not a procedure that can be performed on canceled checks to detect defalcations. It is instead a procedure that can be performed to detect errors in payroll processing. A, B, and C are all valid procedures for detecting fraudulent activity related to canceled checks.

Which of the Following Is Not a Procedure That Can