An Audit Procedure That Compares the Name,amount,and Dates Shown on Remittance

question 75

Multiple Choice

An audit procedure that compares the name,amount,and dates shown on remittance advices with cash receipts journal entries and with related duplicate deposit slips would be effective in detecting

• A)kiting.
• B)lapping.
• C)illicit write-offs of customers as uncollectible accounts.
• D)sales without proper credit authorization.

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Definitions:

Bank Charges

Fees charged by banks for various services and transactions, such as account maintenance, transfers, and non-sufficient funds.

Bank Reconciliation

The process of reconciling the checkbook balance with the bank balance given on the bank statement.

Phishing

Fake e-mails that attempt to obtain information about online banking customers.

Drawee

The party in a draft or bill of exchange who is directed to pay, typically a bank.