Theft of cash prior to its entry into the accounting system
Skimming that involves the theft of sales receipts as opposed to payments on accounts receivable Sales
skimming schemes leave the victim organization book in balance because neither the sales transaction nor the stolen funds are ever recorded
A fraud that occurs outside the financial system and therefore has no direct audit trail. There are several kinds of off-book frauds that will be discussed in this book. Skimming is the most common off-book fraud
A variation of a sales skimming scheme in which only a portion of the cash received in a sales transaction is stolen. this type of fraud is not off-book, because the transaction is posted to the victim organizations books but for a lower amount than the perpetrator collected from the customer.
Check- for-Currency
Substitution
A skimming method whereby the fraudster steals an unrecorded check and substitutes it for recorded currency in the same amount
Skimming that involves the theft of incoming payments on accounts receivable. This form of skimming is more
difficult to hide than sales skimming, because the receivalbe are already recorded on the victim organizations books. in other words the incoming payments are expected by the victim organization. the key to a receivables skimming scheme is to conceal either that the payment was stolen or that the payment was due.
A method of concealing the theft of cash designated for accounts
receivable by crediting one account while abstracting money from a different account. this process must be continuously repeated to avoid detection.
A method of concealing receivables skimming whereby the fraudster falsifies account totals to conceal the theft of funds. This is also sometimes known as "plugging". Typically the fraudster will steal a customers account so that the
account does not age past due. this causes an imbalance in the cash account.
The theft of an organizations cash after it has been recorded in the accounting system.
Frauds that target incoming sales or receivables. Typically the perpetrators in these schemes
physically abscond with the victim organizations cash instead of relying on phony documents to justify the disbursement of the funds. Cash receipts frauds generally fall into two categories Skimming and Cash Larceny
A method of concealing deposit theft that occurs when an employee steals part or all of the deposit from one day and then replaces it with receipts from subsequent
days
Schemes in which an employee illegally or improperly causes the distribution of funds in a way that appears to be legitimate. Funds can be obtained by forging checks, submitting false invoices, or falsifying time records.
A method used to conceal cash
larceny. The perpetrator processes false transactions to void a sale to refund cash, which causes sales records to reconcile to the amount of cash on hand after the theft.
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What is receivables skimming?
An employee who is skimming receivables is intercepting payments from customers and pocketing the cash. The fact that skimming fraud is done before the payment enters the company's accounting system is what separates it from cash larceny.
What techniques are generally used to conceal a receivables skimming scheme?
Lapping is the crediting of one account through the abstraction of money from another account. It is used to conceal receivables skimming because the fraudster will use a customers paying to cover-up a stolen payment from another customer.
Which of the following computer audit tests can be used to detect skimming schemes?
Which of the following computer audit tests can be used to detect skimming schemes? Computing the percentage of assigned time to unassigned time for employees is one method to detect an employee skimming scheme.
What is the primary difference between cash larceny and skimming?
The difference in the two types of fraud depends completely on when the cash is stolen. Cash larceny is the theft of money that has already appeared on a victim organization's books, while skimming is the theft of cash that has not yet been recorded in the accounting system.