Discuss ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Topic 5 Question 8

Skimming is:

AThe removal of cash from a victim entity prior to its entry in an accounting system.

BThe addition of cash from a victim entity prior to its entry in an accounting system.

CThe removal of cash from a victim entity after its entry in an accounting system.

DNone of above

Suggested Answer: A

Rationale for Correct Answer:

Skimming is defined as the theft of cash before it is recorded in the books. Because the stolen funds are never entered into the accounting system, this is often referred to as an ''off-book'' fraud. It is distinct from cash larceny, which occurs after cash has been recorded.

Analysis of Incorrect Options:

B . The addition of cash -- Incorrect; skimming involves removal, not addition.

C . Removal after entry -- This describes cash larceny, not skimming.

D . None of above -- Incorrect since option A is correct.

Key Concept:

Skimming schemes --- off-book cash theft.

ACFE Fraud Examiners Manual (2020 International Edition), Cash Receipts --- Skimming Schemes.

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14 comments · newest first

Hyman 4 days ago

No, I believe it’s A. Timing is key here.

Gwenn 9 days ago

I lean towards C. It’s about after the entry, right?

Deonna 14 days ago

I’m not sure, but A sounds right to me.

Elbert 19 days ago

Definitely A! It makes sense to remove it early.

Cheryl 24 days ago

I think skimming is about taking cash before it's recorded.

Galen 30 days ago

I agree with A, makes the most sense to me!

Micaela 1 month ago

Wait, is skimming really just about cash? Sounds too simple.

Paulina 1 month ago

No way, it's definitely not D!

Dick 2 months ago

I thought it was C, but now I'm not so sure.

Roy 2 months ago

Definitely A, that's how it works.

Carrol 2 months ago

I vaguely recall that skimming is related to cash removal, but I can't remember if it’s before or after entry. This is tricky!

Yong 2 months ago

I’m really torn between A and C. I feel like I need to double-check what I studied about cash handling.

Carmelina 2 months ago

I remember practicing a question like this, and I think skimming is definitely about taking cash out before it hits the books.

Deeanna 2 months ago

I think skimming has to do with removing cash, but I'm not sure if it's before or after it gets recorded.

ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam - Topic 5 Question 8 Discussion