4. Which of the following controls could be used to detect bank deposits that are recorded but never made?

A.Establishing accountability for receipts at the earliest possible time.

B.Linking receipts to other internal accountabilities (i.e., collections to either accounts receivable or sales).

C.Consolidation cash receiving points.

D.Having bank reconciliations performed by a third party.

D. yes. Having an independent third party prepare the bank reconciliations would reveal any discrepancies between recorded deposits and the bank statements. A bank reconciliation compares the bank statement with company records and resolves differences caused by deposits in transit, outstanding checks, NSF checks, bank charges, errors, etc.

A no. This control is implemented before deposits are prepared and recorded in the company’s books. The problem here is the detection of the diversion of funds that have been properly recorded upon receipt.

B C same as A.