CIMA BA3 · Chapter 8 · Question 5 of 10
A cashier steals money received from customer A, then uses money later received from customer B to clear customer A's account, and so on. What is this type of fraud known as?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Teeming and lading
Explanation
Teeming and lading (also called lapping) hides the theft of receipts by using later receipts to cover earlier ones. It can be detected by comparing remittance details with postings, by rotating staff duties and by sending statements to customers. Window dressing is the manipulation of year-end figures.
More Control of accounting systems MCQs
- Q7Which of the following is an authorisation control over purchases?
- Q8Which of the following is an example of an access control in a computerised accounting system?
- Q9Who has the primary responsibility for preventing and detecting fraud in a company?
- Q10Which of the following is a limitation of any system of internal control?
- Q1What is the main purpose of internal controls in an accounting system?