Indicate whether each statement below is true or false. Kiting is a fraudulent scheme that involves an employee covering a cash shortage by transferring money from one A. True intercompany bank account to another. B. False It is generally more effective to use substantive analytic procedures for auditing cash. The financial statement line item called "Cash and Cash Equivalents" includes cash and short-term highly liquid investments such as treasury bills and money market funds. Lapping is the removal of cash from an organization prior to its entry in the accounting system. The type of bank account that is used for a specific purpose and generally maintains a very small balance is called an imprest account. This type of cash account is commonly used for payroll