In Working with the Bank Reconciliation and the Subsequent Period's

question 31

Multiple Choice

In working with the bank reconciliation and the subsequent period's bank statement, the auditor finds that a prior-period cheque was not on the reconciliation as an outstanding cheque. This may be an indication of:

• A) lapping.
• B) kiting.
• C) window dressing.
• D) an attempt to conceal a cash shortage.

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Definitions:

Unimodal

A distribution with a single peak or mode.

Skewed

Describes a distribution that is not symmetrical, with data points clustering more on one side of the mean than the other.

Symmetric

In mathematics, describing a shape or system that is identical in form on both sides of a central axis.

Histogram

A graphical representation of data that groups the data into ranges or bins and displays the frequency of data within each range using bars.