chapt 4

Question 1

skimming schemes

Answer 1

cash is stolen before entred into books

Question 2

skimming is

Answer 2

difficykt to detect

Question 3

2 types of skimming

Answer 3

sales and reicievales

Question 4

sales skimming is when

Answer 4

employee makes sale collects payment and does not record the transaction and pockets money

Question 5

sales skim is

Answer 5

most basic skimming scheme

Question 6

other sales skimming schemes are

Answer 6

cash register manipulation, after hours sales, off site, understated sales, theft in mail room

Question 7

preventing and detecting sales skimming

Answer 7

issue reciepts always
cameras near registers and mail rooms where can steal easily

segragation of duties

mail opened in clear places

Question 8

receivables skimming

Answer 8

sale is already recorded in books

Question 9

receiveables skimming is

Answer 9

harder to do than sales

Question 10

6 Techniques Used to Conceal Receivables Skimming

Answer 10

lapping
stolen statements
force balancing
writeoffs
debitied wrong acc
docement destruction

Question 11

lapping

Answer 11

Using funds from one customer to cover theft from another customer’s payment

Question 12

force balancing

Answer 12

Employees manipulate records to cover missing funds

Question 13

preventing and detecting receivables skimming

Answer 13

mandate vacations to see if fraud is in their absence

supervisory approval with account changes

train audit staff and conduct audit tests

segregation of duties

Question 14

cash larceny

Answer 14

stealing money when already recorded

Question 15

cash larceny schemes can occur at

Answer 15

any point where employee has access to cash

Question 16

larceny at point of sale

Answer 16

Employees steal cash from registers after a sale has been recorded

Question 17

death by thousand cuts is

Answer 17

steal in small amounts over period of time

Question 18

reversing transactions

Answer 18

Employees make fake refunds or void transactions to cover stolen cash

Question 19

Preventing and Detecting Cash Larceny at the Point of Sale

Answer 19

reconcillation at end of shift maybe get two people to do it

discrepancies should be checked in accounts and look for patterns is identified

Question 20

cash larceny from the deposit

Answer 20

steal deposits before they reach the bank

Question 21

deposit lapping

Answer 21

Using funds from one day’s deposit to cover a stolen deposit from the previous day.

Question 22

deposits in transit

Answer 22

says money is still in transit

Question 23

Preventing & Detecting Cash Larceny from Deposits

Answer 23

separation of duties from transporting to deposits and delivering all independent

two copies of bank statement delivered to diff ppl in org

deposits required to be dropped at night

Question 24

2 ways a person can misappropriate a company asset:

Answer 24

misuse
larceny

Question 25

Non-Cash Asset Misappropriation

Answer 25

employees steal inventory, equipment, or other assets instead of cash.

Question 26

misuse term

Answer 26

misused not stolen

Question 27

misuse ex

Answer 27

Company cars, supplies, computers, office equipment etc

Question 28

the fake sale

Answer 28

Employee has outside accomplices to help steal an orgs property

Question 29

Preventing and Detecting Unconcealed Larceny of Non-Cash Tangible Assets

Answer 29

segregate duties between requisition purchasing receiving physical security count inventory counts on a periodic basis

Question 30

key concealment issue is

Answer 30

shrinkage

Question 31

2 ways of misappropriation of intangible assest

Answer 31

info secyurities