There are numerous methods of skimming and many reasons why it is done. This article walks you through one civil case resolved by a forensic accountant and highlights the difference between a criminal case and civil case. It also addresses numerous types of skimming and how they are perpetuated and caught.
1. What is the difference in the decision making process in criminal case and a civil case? What does this difference mean?
2. Skimming can occur before or after the recognition of revenues. What are some of the common ways revenue skimming occurs and what are some of the effective ways to combat it?
3. Lapping is a common concealment technique which is usually associated with less sophisticated individuals. Why does the “educated criminal” shy away from lapping? What are the possible ways to keep lapping concealed after the perpetrator leaves the firm?
4. What are some of the techniques used to detect skimming and how would you make their presence known to deter skimming?
(Joseph T. Wells, The CPA Journal Online. Retrievable online at http://www.nysscpa.org/cpajournal/2007/607/essentials/p60.htm)