Question

What techniques are generally used to conceal a receivables skimming scheme?

What is the difference between skimming and cash larceny?

Answer 1

Following are some of the common techniques used in concealing skimmed receivables:

• Forcing Account Balances or Destroying Transaction Records
• Lapping
• steal an incoming cheque intended as payment on a receivable, and they simply act as if the cheque never arrived.
• Debits to expense account
• Debits to fictitious receivable
• Writing off account balances

Some of the common differences between skimming scheme and cash larceny are:

Its difficult to detect skimming as compared to cash larceny.

Skimming schemes do not have audit trail where as cash does have.

In skimming scheme cash is removed from the victim organisation before the cash is entered in books of the organisation whereas in cash larceny the cash is removed after the being entered in the books of the organisation.