Lapping schemes and audting - Assignment Example

Due Preventing and Detecting Larceny in Lapping Schemes at Point of Sale Larceny and Skimming go hand and hand. There an assortment of different types of fraudulent schemes that exist within the business world. Skimming is the actively taking of cash monies from the business before the sale in legitimately recorded within the register or computer system.("Norton Group") That said it is at the point of sale, or the moment that the transaction with the customer or client takes place, where the greatest potential of such a scam is easiest.

Lapping, specifically, is essentially a concealment technique used by frauders to cover of skimming that involves receivables. 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 “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.

Work Cited”Subject:" How to Prevent Business Fraud." The Norton Group. The Norton Group, n.d. Web. 17 Oct 2012. .Your NameInstructor’s Name Course NameDue DateAvoiding Collusion in Auditing 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 relationships and policies, inform suppliers and vendors that gratuities to employees are not allowed, and lastly, and most importantly, to provide a secure and anonymous means that the employees may report suspicious or dishonest behavior. Analytical review of what is going one regularly within the business is essential. Do not allow small discrepancies to be overlooked, it could lead to greater losses. They, also, suggest that one of the best ways to deter and interfere in fraudulent actions is to rotate personal and their responsibilities, those involved in a collusion scheme within the auditing, will be hampered if their job responsibilities and access is regularly changing.

It would be advised, as well, if they put these anti-fraud measures to the test regularly. When potential frauders see that the business has the structure to detect and expose collusion, and have tested those structures with success, that the potential frauder’s will be deterred from considering future fraudulent actions. Works CitedLeisner, James. "When Theres a Team Effort to Defraud." StoneBridge Business Partners. EFP Rotenberg Company, n.d. Web. 17 Oct 2012. .