The document discusses various techniques for committing and concealing fraud such as sales skimming, skimming of receivables, and cash larceny. Sales skimming occurs when an employee makes a sale but does not record it. Skimming of receivables can be done through techniques like lapping, falsifying receipt records, and stealing customer payments. To detect cash larceny, organizations should enforce separation of duties for cash handling and independent verification of sales records, deposits, and bank receipts.

1. UGBA 127-5; Homework Antonia FICOVA
Haas School of Business, 24116680
UC Berkeley; 2012
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7. 2 Discuss how sales skimming is co-
mmitted and concealed.
imply definition of this term
provided Kranacher, Riley, Wells
(2011, 295-6) and in short means when
an employee makes a sale of goods or
services to a customer, but makes no
record of the transaction. In practice, if
we look at sales of goods at the cash
register, a customer purchase an item
and employee enters the sale on a cash
register, so register shows that sales has
been made and how much of cash
should be in the register. On the one
hand by comparing the register tape to
the amount of money on hand, it may be
potential to detect thefts but on the other
hand most employee does not have to
always record the sale end of the day.
S
7.3 Discuss how the skimming of recei-
vables is committed and concealed.
irst, incoming receivables are
expected, second organization is
likely to notice if they are not received
and logged into the accounting
systemm, third usually customers com-
plain when they receive second bill for
already realized payment. As a
F
conclusion of what was mentioned
earlier, fraudsters attempt to skim
receivables, so that is important to
eliminate these skim by following
techniques that has been described by
Kranacher, Riley, Wells (2011, 301-2).
For example, lapping means crediting
of one account through the abstraction
of money from another account.
Receipting process, especially charge
of collecting and posting payments
due to falsify records to conceal the
theft of receivable payments,
represents techniques of Force balan-
cing. Stolen statement means when
customer´s payment are stolen and not
posted, so his account becomes
delinquent. Due to this fact false
statements lead the customers to
believe that their accounts are up-to-
date. Another methods such as
fraudulent write-offs or discounts,
debiting the wrong account, document
destruction has been identified by these
authors.
7.6 Explain the techniques used to de-
tect cash larceny.
f we look at lack of internal control,
in order to prevent cash larceny atI
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2. UGBA 127-5; Homework Antonia FICOVA
Haas School of Business, 24116680
UC Berkeley; 2012
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
the point of sale, organizations should
enforce separation of duties in the cash
receipts process ad make sure that are
independent checks over the receipting and
recording of incoming cash. The first key of
detection of this fraud is discrepancies
between sales records and cash on hand,
as a result of that organizations should run
reports of discounts, returns, adjustments,
write-offs issued by employee. If we focus
on detection cash larceny from the
deposit, it is necessary to point out that
prevention forms such as calculating
daily receipts, preparing the deposit,
delivering the deposit to the bank,
verifying the receipted deposit slip
should be performed independently of
one another. In sum, organizations can
require that deposits be made in a night
drop at the bank and that each deposit
be verified at the beginning of the next
day´s business. Schemes for detecting
cash larcey according to Kranacher,
Riley, Wells (2011, 311-3) may include
when locations with high adjustments,
employee with high adjustments may also
signal actions to hide cash larceny
schemes.
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