register disbursement scheme
tricking company through register to think its a legit return
overstated refund
legit refund, but they add on the price
ex: return = 8, record 18, take 10
false refunds used frequently bc…
built in excuse for register to balance
cvs example
take items off shelf and take the money
macys aka silent crime in shoe dept
- follow the money
- ordered 5 mo of sales data for department
–> saw trend every month on the 28th , certain credit #s would be credited returns for $300. NO corresponding sales, each mo credit card used ONCE per month - 50% commission
- part time employee
NEW CONTROLS :
- manager approval (Bed bath and beyond had collusion of employee and manager)
- returns now have to go on the same credit card
**look at patterns
cash and inventory accounts relation
inventory overstated
cogs understated
NI overstated
cash skimming
take money before its recorded
- unrecorded sales
- sales never recorded
- off site employees
ex: parking during off season and application fees
–> easier to skim bc don’t know how many ppl parked or applied
understated sales
skimming
not scanning some items
check for currency subsitutions
steal cash and replace with fake checks
–> fake name and dont do it too often
receivables skimming
taking before its recorded, but youre expecting it as it is already a receivable on the books
lapping
receivables skimming
- receipts came on monday –> steal
- receipts came on tuesday, record for monday
- wednesday receipts recorded for tuesday
**control of mandatory vacation and job rotation
force balancing
receivables skimming
plug in journal entry to cover up tracks
ex: correct journal entry
cash XX
AR XX
force balancing
misc. exp XX
AR XX
larceny
cash already on the books and the books wont balance
UF dunkin donuts
store manager responsible for verifying cash sales and make cash deposits
3 deposit slips $1600, didnt make it to bank and were not in safe
