Anderson embezzled $20,000 from her company's account in Bank X. At year-end, she hid the shortage by making a deposit on December 31 in Bank X, drawn on Bank Y. She has not recorded the transaction on the books. Which of the following is most likely to be effective in detecting this fraud?

A. Bank transfer schedule prepared using only the cash receipts and cash disbursements journals.
B. Comparison of bank cutoff statement to the cash receipts and disbursements records.
C. Receivable confirmation.
D. Bank confirmation.


Answer: B

Business

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