ACCA AA · Chapter 7 · Question 3 of 8
A cashier at Gusset Co steals cash received from one customer and covers the shortfall by allocating a later receipt from another customer to the first customer's account. How is this fraud best described?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Misappropriation of assets, known as teeming and lading
Explanation
Teeming and lading is a form of asset misappropriation in which receipts are stolen and the theft is concealed by misallocating later receipts. It is not fraudulent financial reporting because the aim is theft of assets rather than deliberate misstatement of reported results. Ghost employees relate to payroll fraud.
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