Danielle Boyle, CFE, was hired to investigate some suspicious activity in the ca

Question

Danielle Boyle, CFE, was hired to investigate some suspicious activity in the cash receipts for Highway 53 Mini-Storage. While examining the company’s cash receipts journal, she noticed several edits to the cash receipts journal posted to manager that reduced cash receipts by $150 to $700 a week. She vouched the lower amounts to the deposit slips and bank statements. Ms. Boyle also traced the original cash receipts to customer sub-ledger accounts. What type of fraud scheme might she have found and why?

Explanation / Answer

Ans.1 - Type of fraud scheme - Skimming of cash and cash larcency scheme.

Ans.2 - Why?

because there wa reduction in cash receipts of $150 to $700 a week, and when she traced the journal she found several edits to the cash reciept journal

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