What is Interbank transfer schedule?
In short
An interbank transfer schedule lists cash transfers between the entity's bank accounts around year-end, comparing the dates each transfer was recorded in the books with the dates the banks recorded it.
Key takeaways
- It detects kiting, where the same cash is counted in two accounts at once.
- It also finds cutoff errors in recording transfers.
- A transfer recorded as a deposit in one account but not yet as a withdrawal in the other overstates cash.
Where it's tested
AUD: Responding to Assessed Risks — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor assesses control risk as very low for the revenue cycle after successfully testing controls. Which statement is correct regarding substantive procedures for revenue?