All 25 Control Accounts questions
More in Control Accounts
Why is a control account a form of internal control? What is the effect of a discount allowed on the control accounts? How is a bad debt written off reflected in the sales ledger control account? How do dishonoured cheques appear in the sales ledger control account? How is refund to a customer shown in the sales ledger control account? Which errors affect the control account and which affect the list of balances? How is a contra/set-off recorded in the control accounts? How do you prepare a sales ledger control account from incomplete information? How would an overstatement of the sales day book affect the control account reconciliation? How do you prepare a purchases ledger control account to find missing credit purchases?
Advertisement
Back to results for “Sales & Purchase Ledgers”
Bookkeeping › Control Accounts

What is teeming and lading and how do control accounts help detect it?

Intermediate

Answer

Teeming and lading is a fraud where receipts from one customer are stolen and covered by allocating a later customer's payment to the first account, rolling the shortfall forward. Independent control accounts and reconciliations, plus prompt banking and segregation of duties, help detect the resulting discrepancies and delays in postings.
Real-world example Delayed, mismatched customer allocations flagged by the control account reconciliation reveal a teeming-and-lading fraud.

Common follow-ups: How does the fraud work? | Which controls detect it?

Sales & Purchase Ledgers Bank Reconciliation Control Accounts
All 25 Control Accounts questions