ACCA BT · Chapter 8 · Question 8 of 11
A credit controller steals cash received from Customer A, then conceals the theft by recording a later receipt from Customer B against A's account, and so on. What is this type of fraud called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Teeming and lading
Explanation
Teeming and lading (also called lapping) involves misappropriating receipts and covering the shortfall using subsequent receipts from other customers. Rotating duties, mandatory holidays, and sending regular statements to customers help detect it. Ghost employees involve payroll fraud, window dressing is manipulating the appearance of the year-end position, and supplier collusion involves false or inflated invoices.
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