Question: Assume a client who owns a small apartment complex in
Assume a client who owns a small apartment complex in a different city than where he lives has discovered that the apartment manager has been skimming rental receipts, which are usually paid by check. The manager endorsed the checks with the apartment rental stamp, then endorsed her own name and deposited the proceeds into her own checking account. Because of the size of the operation, hiring a separate employee to keep the books is not practical. How could a scheme like this be prevented in the future?
Answer to relevant QuestionsIn many cases involving skimming, employees steal checks from the incoming mail. What are some of the controls that can prevent such occurrences? What are the main weaknesses in an internal control system that permit fraudsters the opportunity to commit cash larceny schemes? Why is it generally more difficult to detect skimming than cash larceny? What are the five categories of fraudulent disbursements, and where did billing schemes rank in terms of frequency and cost in the 2011Global Fraud Survey? How does an employee make personal purchases on company credit cards, purchasing cards, or running charge accounts?
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