Bulletin HASKINS & SELLS 85
Kiting
A RECENT case in our experience pre-sents
some very interesting features
in connection with the verification of bank
balances. The principle involved is old,
but the practice in this case was rather
novel.
A cashier had misappropriated a considerable
amount of cash. The method of
doing so is not germane to the present
discussion. He had made no attempt to
falsify the accounts, but was merely short
in his bank balance. There were active
accounts in two local banks. Being informed
that an audit of his accounts would
be made at the end of a month, he proceeded
to cover up the shortage in a very
ingenious manner.
On the last day of the month he drew
two checks, one on each bank to the
order of the other bank, for half the amount
of the shortage, taking the checks from the
back of the check books. He had these two
checks signed by two different officers, with
the explanation in each case that it was
