Which of the following best represents an example of fraud utilizing the lapping technique?
A)An employee transfers cash on the last day of the year in order to double record it in the bank accounts.
B)An employee creates a fictional vendor and requests payment to a personal P.O.box.
C)An employee opens the mail to cover up payroll fraud received on a fictional person.
D)An employee covers up the stealing of receipts by posting to the wrong customer accounts.

Question

Quizplus · Accepted Answer

The lapping technique involves using subsequent payments to cover up previous thefts. In this scenario, the employee is covering up the theft of receipts by posting them to the wrong customer accounts, and then using subsequent receipts to cover up the discrepancy in the original accounts. Option A refers to overlapping deposits, which is not the same as the lapping technique. Option B refers to a shell company scheme, and Option C refers to payroll fraud, neither of which involve the lapping technique.

Which of the Following Best Represents an Example of Fraud