Detecting Skimming Cases
Question
Skimming cases can more likely to be detected by:
Answers
Explanations
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A. B. C. D.B
Skimming is a type of fraud in which cash or other valuables are stolen from a business before it is recorded in the accounting system. Skimming can be difficult to detect since it does not leave an obvious paper trail or record in the accounting system. However, there are several ways in which skimming cases can be detected, as described below.
A. Internal audits: Internal audits are conducted by the internal audit department of the company to assess the effectiveness of the internal controls and identify any instances of fraud or other irregularities. Skimming can be detected during an internal audit by reviewing the accounting records and comparing them to the actual cash receipts. If there is a discrepancy between the two, it could indicate that skimming has taken place.
B. Accidents: Accidents can also lead to the detection of skimming. For example, if an employee who is skimming cash is involved in an accident and requires medical attention, the hospital or other healthcare provider may become suspicious of the amount of cash the employee has on hand and report it to the authorities.
C. Internal controls: Internal controls are policies and procedures that are designed to prevent and detect fraud and other irregularities. Effective internal controls can help to prevent skimming and other types of fraud from occurring in the first place. Additionally, internal controls can help to detect skimming by monitoring the accounting records and the cash receipts to ensure that they are accurate and complete.
D. Occupational frauds: Occupational frauds are frauds committed by employees against their employer. Skimming is one type of occupational fraud. Therefore, if a company has experienced other types of occupational frauds, it may be an indication that skimming is also occurring and needs to be investigated.
In conclusion, all of the options provided in the question can help to detect skimming. However, internal audits, effective internal controls, and the detection of other occupational frauds are likely to be the most effective ways to detect skimming.
