Which of the following is not the skimming scheme?
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A. B. C. D.B
Skimming is a type of fraud where cash or other forms of payment are stolen from an organization before they are recorded on its accounting system. The scheme is usually committed by employees or other insiders who have access to the organization's cash receipts.
Out of the given options, option D, "Understand sales and receivables," is not a skimming scheme. It is a concept that a fraud examiner must understand when investigating skimming schemes. Skimming schemes typically involve the theft of cash or checks that are received by an organization. These schemes can be committed in various ways, including:
A. Unrecorded sales: This scheme involves the theft of cash from sales that are not recorded in the organization's accounting system. For example, an employee may pocket cash received from a customer and not record the sale in the organization's records.
B. Fraud & Cost: This scheme involves the theft of goods or services from an organization. For example, an employee may steal inventory and sell it for personal gain.
C. Theft of checks through the mail: This scheme involves stealing checks that are sent to an organization through the mail. For example, an employee may intercept checks sent to the organization, deposit them into their personal bank account, and then destroy the checks to cover their tracks.
Fraud examiners must be aware of skimming schemes and understand how they are committed to be able to detect and prevent them. Additionally, they must be able to identify the red flags associated with skimming, such as missing receipts or invoices, unexplained adjustments to accounts receivable, and an unusually high number of voided transactions.