In a ________ scheme,customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.
A) kiting
B) laundering
C) bogus expense
D) lapping

Question

Quizplus · Accepted Answer

This is the definition of lapping, where a dishonest employee steals a customer's payment and covers up the theft by using payments from other customers to reconcile the accounts. Kiting involves creating fake balances or deposits between bank accounts to inflate cash balances, laundering involves disguising the origins of illegal funds, and bogus expense schemes create fake expenses to steal money from a company.

In a ________ Scheme,customer Receipts Are Stolen and Then Subsequent