UGBA 127-5; Homework Antonia FICOVAHaas School of Business, 24116680UC Berkeley; 2012–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

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.

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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 F

received and logged into the accounting systemm, third usually customers com-plain when they receive second bill for already realized payment. As a 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,

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UGBA 127-5; Homework Antonia FICOVAHaas School of Business, 24116680UC Berkeley; 2012–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––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 at 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

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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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