Bank transfer schedule

A bank transfer schedule is used by auditors to test for the existence of kiting by a client. The schedule lists the details of all transfers to and from a client’s banks, as well as between the client’s banks. Withdrawal and deposit dates should have been recorded in the same reporting period to avoid the double counting of cash. Kiting is occurring if the same cash deposit is appearing in two accounts at the same time.  For example, the schedule should show instances in which a check was issued near the end of a reporting period and was not listed as an outstanding check in the bank reconciliation. As another example, the schedule should reveal cases where a deposit was sent to and received by the bank, and yet was still listed as a deposit in transit by the client. Both of these examples are instances of either deliberate or inadvertent kiting.

Related Courses

How to Audit Cash 
How to Conduct an Audit Engagement