Audit Tests to Detect Lapping Involve Which of the Following

question 1

Multiple Choice

Audit tests to detect lapping involve which of the following?

• A) confirm accounts payable.
• B) compare details of cash payments journal entries with the details of corresponding daily deposit slips.
• C) use a bank cut-off statement.
• D) make a surprise cash count of currency and customers cheques on hand and oversee the banking of these amounts

---

Definitions:

Payroll Tax

Taxes imposed on employers or employees, often calculated as a percentage of the salaries that employers pay their staff, funding social security and healthcare programs.

Social Security Tax

A charge imposed on both workers and their employers to finance the Social Security system, offering financial support to retirees, individuals with disabilities, and children of workers who have passed away.

Income Tax Decrease

A reduction in the rate at which individuals or corporations are taxed on their income, potentially leading to increased disposable income and consumption.

Federal Deficit

The amount by which a government's expenditures exceed its tax revenues.