What does lapping mean in business?
Lapping occurs when a cashier or clerk steals cash from one customer’s payment and covers it up by stealing cash from the next customer’s payment and so on. It is easier where cash handling and cash recording duties are handled by the same person. Also called teeming and lading.Click to see full answer. Simply so,…
Lapping occurs when a cashier or clerk steals cash from one customer’s payment and covers it up by stealing cash from the next customer’s payment and so on. It is easier where cash handling and cash recording duties are handled by the same person. Also called teeming and lading.Click to see full answer. Simply so, what is mean by lapping?Lapping is a machining process in which two surfaces are rubbed together with an abrasive between them, by hand movement or using a machine. This can take two forms. The other form of lapping involves a softer material such as pitch or a ceramic for the lap, which is “charged” with the abrasive.Likewise, what is lapping and kitting? Lapping occurs when cash is stolen upon receipt from one customer’s account. Kiting occurs when funds are stolen from the company and, to cover this theft, the employee transfers money from one bank account to another account right before year-end. Besides, is lapping illegal? Lapping is the illegal practice of allocating one customer’s payment to another customer’s account. The fraudster does this to make the books balance, usually to hide a theft or shortfall. A clerk or cashier may steal cash from one customer’s payment. Lapping is a white-collar crime.How do you detect lapping?A lapping scheme can be detected by tracing how cash receipts have been applied to customer accounts. If there is evidence that cash receipts are routinely being applied to the wrong customer accounts, then there is likely an active lapping scheme in progress.
