fraud Flashcards
theft of cash after the cash has been recorded on the books, such as directly from a cash register or petty cash.
Larceny of Cash
“off-book” technique to remove cash before a company records the receipts.
Skimming
Removing checks before they are cashed so any personal checks by the cashier found in the register flag cover-up of a theft.
Swapping checks for cash
counterfeiting of checks, altered easily
Check tampering
building up balances in two or more bank accounts based upon floating checks drawn against the other accounts.
Kiting
employees divert refunds to their own credit card accounts
Credit card refund and cancellation schemes
recording of payment on a customer’s account sometime after the receipt of the payment.
Lapping
Covering a phony sale with an equally phony receivable, which may be eventually written off.
Fictitious Receivables
perpetrator puts up accounts receivable as collateral for a loan.
Borrowing against accounts receivable
employees may steal inventory and supplies for personal use or sell the stolen items to outsiders at flea markets/garage sales
Stealing inventory
Payment is paid in full to an outside accomplice
Short shipments with full prices
providerattempt to charge more than once for the same service, for example bybillingusing an individual code and again as part of a bundled set of tests.
Double billing
a publicly heldcompanywith no or nominal assets other than money used to launder money, evade taxes
Shell companies
unrecorded sales, understates sales, creating false sales, padding prices to increase commission
Doctored Sales Figures
invent fictional accounts payable such as multiple payments to payee, inflated invoices, shell companies, ghosts on the payroll
Sham Payments
