Lapping Scheme

The video explains a lapping scheme, a type of financial fraud involving accounts receivable. It details how funds are stolen and covered up by overlapping payments, making detection difficult. The scheme is possible when one person controls both the receipt of payments and customer billing, allowing them to alter records. The video concludes by summarizing the lapping scheme as a significant financial fraud issue.

What role do accounts receivable play in a lapping scheme?

What are the potential consequences of a lapping scheme if discovered?

How does an individual typically execute a lapping scheme?

Why is it important for an individual to control both receipts and billing in a lapping scheme?

What is a lapping scheme in the context of financial fraud?