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Lapping Scheme


Unveiling the Lapping Scheme: Understanding Fraudulent Accounting Practices

Understanding Lapping Schemes

Explore the deceptive practice of lapping schemes, a form of accounting fraud used to conceal stolen cash by manipulating accounts receivable. Learn about the key characteristics of lapping schemes and how they can be detected.

Detecting Lapping Schemes

Discover the methods used to detect lapping schemes, including tracing cash receipts and identifying unusual patterns in accounts receivable aging. Learn about the warning signs that may indicate the presence of a lapping scheme within an organization.

Preventing Lapping Schemes

Learn proactive measures companies can take to prevent lapping schemes, such as segregation of duties, regular audits of cash receipts, and encouraging employees to take vacation time. Explore strategies to safeguard against fraudulent activities in the workplace.

Example of a Lapping Scheme

Gain insight into how a lapping scheme operates through a detailed example. Understand the mechanics of diverting cash receipts and concealing theft within the accounting records of a company.