Teeming and lading is a bookkeeping fraud also known as short banking, delayed accounting, and lapping. It involves the allocation of one customer's payment to another customer's account to make the books balance, often to hide a shortfall or theft.
What is teeming and lading with example?
Teeming and lading is a bookkeeping fraud which is also known as short banking, delay accounting and lapping. In this fraud, person involved in cash handling misappropriates the cash and show the transaction after some days when another payment is received to prevent the detection of misappropriation of cash.
What are the different types of frauds in auditing?
What is Fraud in Auditing? Types, Reasons
- Manipulation, falsification or alteration of records or documents.
- Misappropriation of assets.
- Suppression or omission of transactions from records.
- Recording of a transaction without substance.
- Misapplication of the accounting policies knowingly.
