Question

three Articles on embezzlement and frud in accounting.Articles can be locally,nationally or internationally.please provide a brief paragraph telling how the article relates to embezzlement or frud in accounting.also,please provide a copy of the article or a URL to access the article.

Answer 1

Answer : Defalcation of Cash: Defalcation of cash has been found to perpetrate generally in the following ways -
(i) By inflating cash payments.
Some of Examples of inflation of payments:
(1) Making payments against fictitious vouchers.
(2) Making payments against vouchers, the amounts whereof have been inflated.
(3) Manipulating totals of wage rolls
(ii) By suppressing cash receipts.

Few Techniques of how receipts are suppressed are:
(1) Teeming and Lading:

Amount received from a customer being misappropriated; also to prevent its detection the money received from another customer subsequently being credited to the account of the customer who has paid earlier. Similarly, money received from the customer who has paid thereafter being credited to the account of the second customer and such a practice is
continued so that no one account is outstanding for payment for any length of time, which may lead the management to either send out a statement of account to him or communicate with him.
(2) Adjusting unauthorised or fictitious rebates, allowances, discounts etc. to
customer’ accounts and misappropriating amount paid by them.
(3)not accounting for cash sales fully