Chapter 11
Critical Thinking Q&A
Far off in the woods, there is a cabin. The cabin contains 3 people. Two are in one room; the
other is alone in another room. All doors to the cabin are locked tight and have not been
opened. All three people are dead. There was no sign of violence in this cabin. How did they
die?
Review Questions & Answers
11-1. Why is sales skimming called an “off– book” fraud?
Answer: Skimming is the theft of cash from a victim entity prior to its entry in an
11-2. What techniques are generally used to conceal a receivables skimming scheme?
Answer: When fraudsters attempt to skim receivables, they generally use one of the
following techniques to conceal the thefts:
11-3. Which is the most effective control to prevent receivables skimming?
Answer: Receivables skimming schemes typically succeed when there is a breakdown in
11-4. What is the difference between skimming and cash larceny?
Answer: Cash receipts schemes fall into two categories: skimming and cash larcenies.
11-5. In cash larceny schemes, what methods may be used to conceal these schemes at the point
of sale?
Answer: The methods often used to conceal cash larceny schemes include:
11-6. How are noncash assets misappropriated?
Answer: Noncash assets such as inventory and equipment are misappropriated by
11-7. What types of company assets are typically misused?
Answer: Assets that are misused typically include company vehicles, company supplies,
11-8. How may the larceny of noncash assets be prevented?
Answer: In order to prevent larceny of noncash assets, the duties of requisitioning,
11-9. What is meant by inventory “shrinkage?”
Answer: When inventory is stolen, the key concealment issue for the fraudster is
11-10. What steps should an organization take to prevent fraudulent shipments of merchandise?
Answer: To prevent fraudulent shipments of merchandise, organizations should make