Lapping schemes and audting Assignment Example | Topics and Well Written Essays - 500 words

Lapping schemes and audting - Assignment Example It is much harder to scheme receivables because it directly relates to customer accounts, and any discrepancies and delinquencies are more likely to be noticed and further investigated. It is common for a frauder, in the midst of a lapping concealment, to â€Å"pocket† the monies from one customer and then use another customer to cover the account, and continue this pattern with other accounts, to avoid attention. However these scams can be tricky, and require the wrong-doer to keep organized documentation to keep track of the accounts they are frauding and the process can get quite complex.("Norton Group") If one can find these documents then the proof is ever-present. It therefore carries an element of risk. However, with point of sale employees it is much easier to deter, discourage, and prevent some fraud. With in-store employees having security cameras and updated computer programs that keep detail accounts that are difficult to bypass are quite useful. It is much harder to predict the actions of off-site employees and more covert actions within a company. However, it is suggested that businesses owners take the time to overview the transactions going on in their company. They cannot afford small, random, inconsistencies to go uninvestigated. The more vigilant a company is about being present and conscious of everything going on within the business then it is less likely employees, who are potential frauders, would be willing to take the chance. Collusion is defined as a secretive agreement between two, or more, individuals who knowingly agree to commit a deceitful act or an act of fraud. It is particularly difficult to expose this type of fraud because it is no easy task to find a single frauder, but exposing a team working together is all the harder.(Leisner) In order to detect and deter the act of collusion there are a few suggestions for businesses to consider. It is important to have regular disclosures of