Describe five (5) common forms of fraud that occurs over accounts receivable in Australia.

An overview of fraud in Australia.
Describe five (5) common forms of fraud that occurs over accounts receivable in Australia.

Expert Solution

Fraud can be defined as the intentional act, false representation or any concealment of a material fact done by one person for the purpose of inducing another person act upon on the same which results in his/her injury.

5 Form of fraud occurs over accounts receivable are as follow:

1. "Skimming sales is one of the fraud of account receivable in which sales receipts involves an employee receiving cash from customer, record the payment & then charging as an expenses Account".

2. "Old & closed accounts are those accounts where customer tend to pay slowly and those accounts are not strictly monitored.

3. Processing of transaction in account receivable ledger by unauthorized person in which he pocket the amount of cash sale due to lack of monitoring by the respective authorities.

4. Sometime there can be a fictitious sale which are recorded by the employees to inflate the sales of company and to strengthen the Balance sheet & Profit/ Loss account.

5. Delay in deposites can also be the one of the reason for fraud in account receivable.

ekkarill92 answered 2 years ago

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Question

Describe five (5) common forms of fraud that occurs over accounts receivable in Australia.

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Expert Solution

Related Solutions

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