During the testing of a year-end bank reconciliation, an auditor noticed that the majority of checks listed as outstanding at year-end had not cleared the bank. Which of the following is a likely explanation?
a. A high probability of kiting.
b. A high probability of lapping.
c. The year-end cash disbursements records had been closed prior to year-end.
d. The year-end cash disbursements records had been held open past year-end.
Answer: D
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