Management discovers that a supervisor at one of its restaurant locations removes excess cash and resets sales totals throughout the day on the point of sale (POS) system. At closing, the supervisor deposits cash equal to the recorded sales on the POS system and keeps the rest.

The supervisor forwards the close-of-day POS reports from the POS system along with a copy of the bank deposit slip to the company's revenue accounting department. The revenue accounting department records the sales and the cash for the location in the general ledger and verifies the deposit slip to the bank statement. Any differences between sales and deposits are recorded in an over/short account and, if necessary, followed up with the location supervisor. The customer food order checks are serially numbered, and it is the supervisor's responsibility to see that they are accounted for at the end of each day. Customer checks and the transaction journal tapes from the POS system are kept by the supervisor for one week at the location and then destroyed.

Which of the following audit procedures would have detected the fraud?

A.Comparing a sample of the close-of-day POS reports to copies of the bank deposit slips.

B.For selected days, reconciling the total of customer food checks to daily bank deposits.

C.Flowcharting the controls over the verification of bank deposits.

D.On a test basis, verifying that the serial-numbered customer food checks are accounted for.