HOME

TheInfoList




Teeming and lading is a
bookkeeping Bookkeeping is the recording of financial transactions, and is part of the process of accounting Accounting or Accountancy is the measurement ' Measurement is the number, numerical quantification (science), quantification of the variab ...
fraud In law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by ...

fraud
also known as short banking, delayed accounting, and lapping. It involves the allocation of one
customer In sales Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. The seller, or the provider of the goods or services, comple ...

customer
's payment to another customer's account to make the books balance, often to hide a shortfall or theft. Teeming & lading is a method by which a person who takes or handles payments uses the money personally for some days and posts the transaction later. The handler receives cash, and uses it for personal purposes instead of depositing it. A common practice trait in this fraudulent activity is that the amounts received from the subsequent debtor is credited to the earlier debtor's account so that one debtor's account does not show an outstanding balance for a long time. To make up the shortfall, when another payment comes in, the handler will deposit that money against first money used, and does not show the new amount received until later. Such a process is continued until the time the original amount misappropriated is finally replaced or until the cashier is caught. Another similar strategy is applied when remittances are received by means of Cheque, cheques, where cheques are split up to record payments. This is known as ''splitting cheques''. By encashing the cheques, less amount is credited to the debtor and rest of the amount is misappropriated. Auditors look during the Vouching (financial auditing), vouching process as part of the verification of transaction to identify teeming and lading.


References

* * * Finance fraud Auditing {{accounting-stub