Factors That Would Lead an Employee to Commit a Lapping

question 19

Multiple Choice

Factors that would lead an employee to commit a lapping scheme include:

• A)a proper separation of duties.
• B)not allowing the bookkeeper to access to cash.
• C)appropriately monitoring the activities of employees who handle cash.
• D)allowing employees to not take time off for earned vacations.

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Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the return on investment for savings.

Inflation

The frequency at which the overall cost of goods and services elevates, depreciating the purchasing power.

Cost-Of-Living Adjustment

An increase in income or benefits to compensate for a rise in the prices of goods and services, maintaining the purchasing power.

Employment Contract

A formal agreement between an employer and an employee outlining the terms of employment, including responsibilities, compensation, and duration.