Question

2. Skimming is:

MULTIPLE CHOICE

a. The theft of cash from a victim organization prior to its entry in the organization=s accounting system.

b. The theft of cash from a victim organization after its entry in the organization=s accounting system.

c. The theft of cash from a victim organization prior to or after its entry in the organization=s accounting system

4. In regard to the cash proof which of the following is false?

MULTIPLE CHOICE

		a. The proof of cash method proves that all the receipts and payments by the bank agree with all the cash receipt and cash disbursement records of the organization.
		b. The proof of cash method will isolate and identify specific unrecorded transactions.
		c. The proof of cash is for a period of time.
		d. The proof of cash is the best tool to use when you suspect that transactions may be deposited and withdrawn from a bank account, but are unrecorded in the company's internal books.
		e. The proof of cash is for a point in time.

6. Lapping almost always goes beyond robbing Peter to pay Paul. Once the first attempt is successful, lapping tends to increase at exponential rates. Now, the fraudster has to steal from other customers. Then, there are many accounts to keep track of. The more lapping occurs, the greater the chance of making a mistake.

MULTIPLE CHOICE

True or false

7. True of false?   Lapping is a skimming method that is doomed to failure over time.

MULTIPLE CHOICE

True or false

9. Lapping schemes require constant manipulation of the accounts receivable in order to avoid detection.

MULTIPLE CHOICE

True or false

13. True of false?  Checks are likely to be stolen if a single employee is in charge of opening the mail and preparing the deposit.

MULTIPLE CHOICE

True or false

14. Which of the following is the most effective control to prevent accounts receivable skimming?

MULTIPLE CHOICE

		a. Prepare a bank reconciliation.
		b. Provide the customer a receipt.
		c. Separate the functions of the person handling the cash and the person keeping the books.
		d. Safeguard blank checks.

Answer 1