Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:

The diligent review of bank statements and cleared checks for alterations to amounts, payees, or signatures is a critical detective control within a company's cash disbursement system. This activity is designed to identify instances of check tampering fraud after a payment has been processed by the bank. By scrutinizing these documents, a company can uncover unauthorized or fraudulent transactions, thereby strengthening its internal controls over the check payment process. This review is a fundamental component of safeguarding cash assets against misappropriation through fraudulent disbursements.

A. Account analysis: This is a broad term for reviewing financial accounts for various purposes, not specifically the control activity of checking for altered checks.
B. Bank reconciliation: While this review often occurs during bank reconciliation, the primary purpose of reconciliation is to match book balances to bank balances, not specifically to detect alterations. The described activity is a specific control within the disbursement process.
D. Check tampering: This is the category of fraud that the control activity is designed to detect. It is the problem, not the preventative or detective action. ---

1. Association of Certified Fraud Examiners (ACFE). (2023). Fraud Examiners Manual

International Edition. "Cash Asset Misappropriation: Disbursement Schemes

" Section 2: Cash Schemes. The manual details that a key control for detecting check tampering is the independent reconciliation of the bank statement

which includes examining canceled checks for possible alterations

dual endorsements

and forged signatures. This is presented as a fundamental control over cash disbursements.

2. Singleton

T. W.

& Singleton

A. J. (2010). Fraud Auditing and Forensic Accounting (4th ed.). John Wiley & Sons. In Chapter 6

"Cash Larceny and Skimming

" the authors discuss controls over cash disbursements. They emphasize that "independent bank reconciliation by a manager who does not have access to the checkbook or cash" is a crucial control

and part of this reconciliation involves scrutinizing canceled checks for signs of tampering (p. 134).

3. Albrecht

W. S.

Albrecht

C. O.

Albrecht

C. C.

& Zimbelman

M. F. (2019). Fraud Examination (6th ed.). Cengage Learning. Chapter 8

"Cash Misappropriation Schemes

" discusses check tampering and the controls to prevent and detect it. The text explicitly states that reviewing bank statements and canceled checks for suspicious activity

such as altered payees or forged signatures

is a primary detective control for check disbursement fraud (pp. 268-270).