Management and Organizational Studies 3367A/B Chapter Notes - Chapter 2-3: Trend Analysis, Bank Statement, Remittance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3367A/B
• Professor: Maria Ferraro

Document Summary

The theft of cash from a victim entity prior to its entry in an accounting system. Missing money is never recorded, no direct audit trail. 3 major categories of occupational fraud: asset misappropriations (most common, corruption, fraudulent statements. Sales skimming: occurs when employee makes a sale of goods or services to a customer, collects the customer"s payment at the point of sale but makes no transaction, cash register manipulation. Incoming mail should be opened in a clear, open area free from blind spots and with supervisory presence. Receivable skimming: more difficult to conceal than sales skimming, conceal either the payment is stolen or it is due, lapping. The crediting of one account through the abstraction of money from another account. The perpetrator hides the imbalance by forcing the total on the cash account, overstating it to match the total postings to accounts receivable.