Final answer:
Kiting is not a procedure to test the accuracy of cash receipts; it is a fraudulent activity that auditors may investigate during an audit.
Step-by-step explanation:
The statement that 'kiting is an audit procedure used to test the accuracy of the cash receipts' is false. Kiting is actually a fraudulent scheme that involves inflating bank balances by taking advantage of the time it takes for checks to clear (known as the float).
Auditors might look for signs of kiting as part of fraud detection procedures, but it is not a procedure used to test the accuracy of cash receipts. Instead, audit procedures to test cash receipts might include reviewing and confirming deposit documentation, reconciling bank statements, and testing receivables.