how to prevent lapping schemes
companies can prevent lapping schemes by doing the following example of a lapping schemesuppose that a company receives 150 for payment but an accounting clerk diverts that to a personal account to hide the theft the clerk will apply the second receivable to come in for example in the amount of 200 to the first receivable that leaves 50 leftover to be applied to the second receivable and 150 of it still to be paid the clerk continues allocating lapping money from successive sales to the preceding receivables so the store s accounting records fail to reveal the discrepancy 