Lapping Scheme: How to Detect and Prevent
A lapping scheme is a fraudulent practice that involves an employee altering accounts receivables to hide stolen cash. It can be detected by tracing how cash receipts have been applied, and one indicator is an employee who refuses to take earned vacation time. A rise in the aging of accounts receivable can also signal a lapping scheme. A company can prevent this fraud by taking simple steps to reduce the opportunity for fraudulent activities.
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