concealing a shortage by delaying the recording of cash receipts. For example, cash received from customer X is withheld by the cashier, and a subsequent cash receipt from customer Y is entered as a credit to X's account. Customer Y's account will not be credited until a collection is received from customer Z. If the money taken by the cashier is not replaced, there is an overstatement in total accounts receivable. However, by carefully shifting the overstatement from one customer to another the bookkeeper averts customer complaints when the monthly statements are received. Cashiers with access to the general accounting records have been known to transfer shortages to inventory or other accounts for temporary concealment. Lapping is possible when the bookkeeper receiving customer collections also records transactions to customer accounts. To prevent lapping, the accountant should prepare a control listing of cash receipts by a department not having access to the accounting records. But even without the control listing, it is difficult for the bookkeeper to have agreement between the detail of daily entries in the books and daily bank deposits. It should be noted that duplicate deposit tickets may be altered. The CPA should compare the duplicate copy with the original retained at the bank. In conclusion, the auditor should compare entries in the cash receipts journal and postings to customers' accounts to mailroom listings and daily deposit slips.
concealing a shortage by delaying the recording of cash receipts. For example, cash received from customer X is withheld by the cashier, and a subsequent cash receipt from customer Y is entered as a credit to X's account. Customer Y's account will not be credited until a collection is received from customer Z. If the money taken by the cashier is not replaced, there is an overstatement in total accounts receivable. However, by carefully shifting the overstatement from one customer to another the bookkeeper averts customer complaints when the monthly statements are received.
