CFE – Financial Transactions and Fraud Schemes — Question 17

All of the following methods would be helpful in detecting a skimming scheme EXCEPT:

Answer options

• A. Comparing register totals to the cash count
• B. Confirming customers’ outstanding account balances
• C. Counting the physical inventory
• D. Examining journal entries for accounts receivable write-offs

Correct answer: C

Explanation

The correct answer is C, as counting physical inventory is not directly related to detecting skimming, which involves the unauthorized taking of cash. The other options, A, B, and D, provide insights into discrepancies that could suggest skimming activities by comparing financial records and customer accounts.