The most basic skimming scheme occurs when:
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A. B. C. D.A
The most basic skimming scheme occurs when:
Answer: A. An employee sells goods or services to a customer, collects the customer's payment, but makes no record of the sale.
Detailed explanation: Skimming refers to a type of fraud scheme in which cash or other valuable assets are stolen from an organization before they are recorded in the accounting system. It is usually perpetrated by an employee who has access to incoming payments. Skimming can occur in various ways, but the most basic form involves the scenario described in option A.
In this scheme, an employee sells goods or services to a customer and collects payment from the customer. However, instead of recording the sale in the organization's records, the employee pockets the cash without leaving any trace of the transaction. This means that the revenue generated from the sale is not reported, and the employee can personally benefit from the stolen funds.
Skimming schemes like this are particularly difficult to detect because there is no apparent discrepancy between the amount of cash collected and the recorded sales. Since no record of the sale exists, the organization remains unaware of the missing funds unless other controls or investigations uncover the fraudulent activity.
To prevent and detect skimming schemes, organizations should implement internal controls such as segregation of duties, regular reconciliation of cash receipts, surprise audits, and close monitoring of customer payments. These measures help ensure that all sales transactions are properly recorded and that any discrepancies are identified and investigated promptly.
It is important for fraud examiners and professionals to be familiar with various fraud schemes, including skimming, as part of their role in preventing, detecting, and investigating fraudulent activities within organizations.