CPA Firm Gettry Marcus Warns Clients about the Risk of Skimming
(PRWEB) November 20, 2014 -- According to Andrew P. Ross, Partner at Gettry Marcus, skimming is not easily detected by analyzing an organization's books and records. Skimming is defined by the Association of Certified Fraud Examiners (ACFE) as “a scheme in which an incoming payment is stolen from an organization before it is recorded on the organization's books and records.”
“Skimming is the classic 'off the books' type of fraud,” says Ross. “An employee might sell a customer a product or service for cash, and then pocket the money and receipt instead of giving the funds back to the company for proper recording. The transaction will never be recorded as a sale, and the employers may never know it occurred. This is potentially very difficult to prevent for companys that deal primarily in cash.”
If you suspect your company has been the victim of skimming, you may require the services of a trained forensic accountant. Ross recommends the following measures to prevent and detect skimming in-house:
- Analyze the ratio of cash receipts to total receipts.
- Examine revenue and cost of sales over a period of time. “This will help you detect whether revenue has been flat or declining while cost of sales has been increasing,” said Ross.
- Analyze the ratio of net sales to gross sales to determine if any refunds due to the company are missing.
Ross added that the simplest means of discouraging skimming is to maintain a visible presence at points where cash is likely to flow. “A common and effective tactic is to set up cameras around cash registers and in mail rooms,” he said. “When an employer implements safeguards like that, employees take notice.”
About Gettry Marcus:
Gettry Marcus CPA, P.C. is a Top 200 firm nationally with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include Real Estate and Health Care. We have one of the premier and most credentialed Business Valuation and Litigation Groups in the New York Area.
Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.
Gettry Marcus is "Always Looking Deeper" to build value for our clients. Always Looking Deeper is our promise to you that we will find meaningful answers and solutions to critical business and personal issues. It means that Gettry Marcus is invested in contributing to the success of our clients. It defines our corporate culture.
Fayellen Dietchweiler, Gettry Marcus, http://www.gettrymarcus.com, +1 5163643390 Ext: 225, [email protected]
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