Answer to Question #126478 in Accounting for Uche David

Question

Describe FIVE types of fraud but include embezzlement, larceny and teeming and lading.

Answer 1

The main types of financial fraud are:

1) 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.

2) Embezzlement is the act of withholding assets for the purpose of conversion (theft) of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes.

3) Larceny is a crime involving the unlawful taking or theft of the personal property of another person or business. 

4) Bribery and corruption. It’s estimated that about 30 percent of uncovered fraud is from bribery and corruption. 

5) Misappropriation of funds happens when someone takes money and payments not meant for them.