Select one of the following and answer each aspect of the item.

1. Define each of these terms:

skimming;

kiting;

lapping;

kickbacks.

For each condition, describe

—in an appropriate level of detail

—a preventative internal control (used by a comp[any to prevent the condition) and a detective internal control (used to detect the condition if it is occurring).

2. What four discrepancies are outlined in SAS No. 99 (PCAOB AS 2401) that indicate the presence of fraud?

For each discrepancy, describe

—in an appropriate level of detail

—a preventative internal control (used by a company to prevent the condition) and a detective internal control (used to detect the condition if it is occurring).

Answer rating: 100% (QA)

1 Skimming is a type of fraud in business or organizations whereby the employee or management team removes cash from the system before it has been recorded For instance skimming can occur when an empl... View the full answer