Final answer:
An auditor requests a cutoff bank statement to verify reconciling items on a client's bank reconciliation, ensuring accurate cash balance reflection and reconciled transactions.
Step-by-step explanation:
An auditor who is engaged to examine the financial statements of a business enterprise will request a cutoff bank statement primarily in order to verify reconciling items on the client's bank reconciliation. This is crucial for ensuring the accurate reflection of transactions at and around the end of the reporting period.
It prevents the potential misstatement of cash balances due to errors or fraud such as lapping or kiting. Although a cutoff bank statement can be peripheral in the detection of lapping and kiting, its main purpose is to confirm the accuracy of the reconciling items such as outstanding checks and deposits in transit cited in the bank reconciliation at the reporting date.