A classic fraud scheme related to cash receipts known as lapping is possible when poor segregation exists for duties of cash receipts and posting accounts receivable.

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Lapping is a real fraud scheme that takes place when there's a lack of proper segregation of duties with regards to cash receipts and posting of accounts receivable. The scheme involves the manipulation or covering up of one debtor's unpaid receivable with another debtor's payment or subsequent receivable. This can be done to hide embezzlement or other fraudulent acts.

A Classic Fraud Scheme Related to Cash Receipts Known as Lapping