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1. Brendan Mallon

According to the textbook, "Skimming is the theft of cash from a victim entity prior to entry in an accounting system. Because the cash is stolen before it has been recorded in the victim company’s books, skimming schemes are known as “off-book” frauds, and, because the missing money is never recorded, skimming schemes leave no direct audit trail. Consequently, it may be difficult to detect that the money has been stolen. This is the principal advantage to the fraudster of a skimming scheme....a cash larceny may be defined as the intentional taking away of an employer’s cash (the term cash includes both currency and checks) without the consent and against the will of the employer," (Kranacher 2019). Skimming can occur at any moment where money enters a business. Anyone handling money, in any form, can potentially skim money from the business. Larceny is similar to skimming however it is a little different. Larceny occurs whenever an employee has access to cash and usually occurs either at the point of sale, from incoming receivables, and from the victim organization’s bank deposits.

An example of skimming is when a criminal installs a debit card reading device inside an ATM machine that way the criminal can obtain the person's card number. An example of larceny is when an employee steals money from the register. A couple internal control examples that could reduce the amount of cash receipt schemes are the segregation of duties of your employees and the other would be the reconciliation of cash. Believe both of these methods could reduce the amount of cash scheme theft for a company.

References

Kranacher, J. M., & Riley, R. (2019). Forensic accounting and fraud examination (2nd ed.). Wiley & Sons. ISBN-13: 9781119494331

https://jcrogerscpa.com/Internal%20Controls.html

2.Kessel Kua

Two terms that are used when theft of cash occurs are skimming and larceny. Skimming is a type of white-collar crime that involves the theft of cash before it is entered into the victim entity's accounting system. For example, a cashier who receives the exact amount from a customer and does not input the amount received in the register is known to have skimmed cash. Larceny is also a white-collar crime that involves the theft of cash except it occurs after the organization accounted for it. For example, when the cash is accounted for in the register the employee responsible for collecting the register tape and the cash from the register could easily destroy the register tape and pocket the cash.

There are several internal controls that should be implemented to prevent cash skimming and larceny from occurring. First, management should conduct random onsite reviews to ensure cashiers are handling and recording payments properly. Second, certain responsibilities should be divided to prevent the employee from having an opportunity to pocket the cash. Third, management should separate recordkeeping from the custody of assets. One employee should have custody of the register tape and the other employee custody of the cash. The separation can prevent employees from falsifying records.

ACFE. (n.d.). Introduction To Fraud Examination. Www.acfe.com. https://www.acfe.com/uploadedFiles/Shared_Content/Products/Self-Study_CPE/Intro%20to%20Fraud-Chapter%20Excerpt.pdf

3.

Gindira Kelly Cervantes

Posted Date

Oct 08, 2021, 2:47 PM

Five major categories of fraud disbursements are billing schemes, check tampering, payroll schemes, expense reimbursement schemes and register disbursement schemes. Some common red flags to billing schemes include the following: an employee's home address matches a vendor's address, checks are written to cash, vendor data are missing. Some red flags to payroll schemes are high percentage of casual employees, sharing logins or using obsolete logins, Loose security, Loose payroll audit trails, regular masterfile changes. Companies need to fight against employee fraud, and the first step to doing so is taking the time to fully understand the various red flags that could point towards fraud being present. Employers can protect themselves against payroll fraud by limiting access to payroll information, having a Culture of integrity. This tone needs to be conveyed in words and actions from the top and reinforced in internal communications. Fraud prevention goals can also be included in performance evaluations; by encouraging direct deposit, by having positive pay for checks and ACH. This fraud mitigation service verifies that checks/ACH withdraws pulled from your account match a file listing all approved transactions. This helps to stop unauthorized transactions and altered payments from clearing.