Short-Term Skimming Scheme

A

Short-term skimming schemes involve the theft of cash or other assets that are not recorded in a company's accounting system, usually over a short period. Typically, these schemes involve employees who have access to incoming cash or checks and manipulate records to conceal the theft.

Let's go through each of the answer options and see which ones are used in a short-term skimming scheme:

A. Unrecorded sales, understated sales, and theft of incoming checks: Unrecorded sales occur when cash is collected but not recorded in the company's books, allowing the employee to keep the cash without detection. Understated sales involve recording a lower amount of sales than what was actually received, allowing the employee to pocket the difference. Theft of incoming checks is when an employee steals checks received by the company before they are recorded in the books, allowing the employee to deposit the checks into their personal account.

B. Unrecorded sales, understated sales, and dual endorsements: Dual endorsements are when an employee endorses a check made payable to the company and then deposits it into their personal account. Unrecorded and understated sales are the same as in option A.

C. False company accounts, understated sales, and theft of incoming checks: False company accounts involve creating fictitious accounts in the company's books and recording false sales or expenses. Understated sales and theft of incoming checks are the same as in option A.

D. Understated sales, theft of incoming checks, and check-for-currency substitutions: Check-for-currency substitutions involve an employee substituting a check received by the company with another check of the same amount drawn on a personal account. The employee then deposits the original check into their personal account. Understated sales and theft of incoming checks are the same as in option A.

Therefore, based on the above analysis, the correct answer is A - Unrecorded sales, understated sales, and theft of incoming checks - as all three are commonly used in short-term skimming schemes.