Friday, November 23, 2007

LAPPING

Today we have trick using by enormous in Accounting Career and the most awful thing is that Accountants whom they didn't have ethics
is the one we are talking about now ..
any way the trick is LAPPING...the name is kinda of confusing ! What does the name mean ?
simply in the big firms or corporations we have deals with other Clients. Some of it in cash and others on credit
So the Lapping Commence here when Cash sales occurred regardless to Career Ethics .
as usual the firm will handle the sales through an Accountant(Financial Accountant) So his role with this Account to record and Classify
every deal with Clients and Customers ..
Generally Most of Customers or Clients don't deal in Cash manner Hence they try with the credit one ...
Furthermore that The Customer who deal in Cash is Acceptedly Had Paid but the Accountant who handle this transaction Do other thing
he record this transaction as credit not cash .. now you figure that there is amount of money is out of records and already paid
beside this the creditors is increasable which influence on profitability
Once the Accountant get the money he involve in personal business Using it ..
before this LAPPING Discovered he repay the amount he had stolen .
So The way to figure this trick is the internal control and Continuous Stocktaking on Cash and the records
Best Hopes,
Mostafa

1 comment:

Unknown said...

I enjoyed your post. thank you for sharing your thoughts and time.
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