Foensic Accounting - Assignment Example

Forensic Accounting Assignment Question Why is sales skimming called an “off-book” fraud? A sale skimming refers to a practice or scheme where a sale person makes a sale of goods or products to a customer but fails to remit the money collected to the accounting department. This kind of scheme is extremely easy to conceal as payments are made without any direct audit trail; hence, this is the reason why it is called an “off-book” fraud. It is the most common form of cash fraud as the books remain balanced while there could be unrecorded sales or understated sales (Silverstone & Sheetz, 2007).

It can also be practiced by manipulation of the cash register by the cash clerk, who pockets the money and then make it appear like the transaction was recorded. Practicing sales of the company’s merchandise during off-hours can also result in “off-book” frauds.Question 2: Which is the most effective control to prevent receivables skimming?Ways to prevent this include: surveillance of the employees at all point-of-sales; investigating of gaps in the transaction sequence or the pre-numbered receipts; and encouraging customers to ask for receipts for any purchases made so as to make employees ring up sales.

Question 3: How is case management software used in an investigation?Case management software refers to an immensely powerful tool used by investigators to conduct timely, effective and efficient investigations in an organization. It can be used to investigate issues such as workers’ compensation cases, customer cases, fraud and insurance claims among others (Silverstone & Sheetz, 2007). It works in a variety of forms including alerts to the mangers or investigators when a new case is entered, capturing of new referrals by employees when they notice any form of fraud but, anonymously, and identifying of repeat offenders of misconduct in an organization.

Mostly, this software is used in internal investigations and risk management in a company.ReferenceSilverstone, H., & Sheetz, M. (2007). Forensic accounting and fraud investigation for non-experts (2nd ed.). Hoboken, N.J.: Wiley.