Please help me with this:

What occurred in this problem? What happened to the checks? Is it possible that Kiting happened in this situation? What would the auditor do in this case, possible action that he/she would take? Why is comparison of receipts and disbursement needed to solve the problem? Can i ask a comprehensive understanding of the problem please?

During the audit of Sunset Building Supply, you are given the following year-end bank reconciliation prepared by the client:

SUNSET BUILDING SUPPLY Bank Reconciliation December 31 Balance per 12/31 bank statement $48.734 Add: Deposits in transit 4.467 $53.201 Less: Checks outstanding 20.758 Balance per ledger, 12/31 $32 443Sunset Building Supply, Comparison December 31 Checks returned or still outstanding Returned in cutoff statement 50,440 Outstanding checks on 1/14 (3,600+8,200) 11,800 62,240 Disbursements per client record Outstanding checks on 12/31 20,758 Issued between 1/1 and 1/14 31,482 52,240 Excess of checks over disbursements 10,000