Chapter 2 Notes

Chapter 2 Notes - Chapter 2 Skimming Skimming is the theft...

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Chapter 2 – Skimming Skimming – is the theft of cash from a victim entity prior to its entry in an accounting system. - Known as “off-book” frauds because it’s before it’s recorded. - Can occur at any point where funds enter a business, so anyone who deals with the process of receiving cash may be in a position to skim money. Data from ACFE 2004 National Fraud Survey 1. Frequency and Cost a. Three types of occupational fraud: i. Asset misappropriations (85-90%) ii. Corruption iii. Fraudulent statements b. Skimming occurs about 28.2% of the time. c. About $85,000 median loss of cash 2. Detection of skimming schemes a. Customer tips – twice as likely b. Less likely to be detected by internal audit 3. Perpetrators of Skimming Schemes a. 68% were employees b. 30% were managers c. 13% were owner/executives 4. Victims of Skimming Schemes a. Particularly small businesses at about $100,000 Skimming Schemes 1. Sales Skimming – the most basic that occurs when an employee makes a sale of goods or
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This note was uploaded on 04/18/2008 for the course ATG 226 taught by Professor Johnsons during the Spring '08 term at Bradley.

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Chapter 2 Notes - Chapter 2 Skimming Skimming is the theft...

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