Bank transfer schedule definition
/What is a 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.
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Examples of Kiting
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.
