Final answer:
Use the check register report to find gaps in the check number sequences. This financial report lists each transaction in a checking account and can help identify missing checks and potential fraud.
Step-by-step explanation:
The question refers to identifying a specific type of financial report to help an individual or a business track the sequence of check numbers. This would help in identifying any missing or fraudulent checks, maintaining an accurate financial record, and ensuring that all transactions are accounted for. The report that is typically used for this purpose is the check register or the bank reconciliation report.
A check register is a document that lists all checks written, deposits made, and other debit or credit transactions in a checking account. This register displays each check number in sequence along with the date, payee, purpose, and amount of the check. When you review the check register or bank statement, you should look for any gaps in the check number sequence to find missing checks. Additionally, the bank statement reconciliation process can also help to identify discrepancies between your records and the bank's records. This process involves matching each transaction in the check register with those on the bank statement to ensure all checks are accounted for. It's a vital practice for both personal and business finance management, as it helps in detecting any irregularities that might indicate errors or fraudulent activities.