// Fraud schemes
Cash receipts
Skimming — unrecorded sales
An employee collects payment for a sale or service and never records the transaction, so the money never enters the accounting records. The scheme depends on the same person taking…
S02Skimming — understated sales (false voids and discounts)
The sale is recorded, but for less than the customer paid. The employee keeps the difference by voiding the sale after the customer leaves, posting an unauthorized discount or price…
S03Receivables skimming — lapping
An employee takes one customer's payment and covers the shortage by applying a later payment from a second customer to the first customer's account, then a third customer's payment to…
S04Receivables skimming — false write-offs and credits (including utility billing adjustments)
An employee keeps a customer's payment and removes the balance from receivables with a write-off, credit memo, false return, discount, or, in utility and municipal billing, a meter or billing…
S05Cash larceny (theft after recording)
Cash is stolen after the receipt has been recorded: from the register drawer, the deposit bag, or the deposit itself. The books show the receipt but the bank never receives…