Which of the following is a method to help detect a skimming scheme?

Examining journal entries for accounts receivable write-offs serves as a viable method for detecting a skimming scheme due to the nature of skimming, which involves taking cash before it is recorded in the accounting system. Skimming is often perpetrated by employees who can manipulate financial records to cover up the missing funds. By analyzing journal entries related to accounts receivable, one can identify unusual patterns or discrepancies that could indicate manipulation. For instance, if there are frequent or oddly timed write-offs, it could suggest that an employee is removing evidence of stolen funds.

Additionally, this option allows a forensic review of the financial records to trace anomalies in the accounting entries, which is crucial when looking for hidden or missing cash. Regular examination of these entries can reveal inconsistencies that might lead to the discovery of fraudulent activities, including skimming. The focus on records pertaining to cash and receivables directly connects to the mechanics of skimming, making this a strategic approach in fraud detection.

Other methods might not pinpoint skimming as effectively. Reviewing payroll adjustments does not necessarily relate to detecting cash theft from sales and could highlight different issues, while confirming inventory levels relates more to inventory fraud rather than cash skimming. Auditing employee family connections may reveal conflicts of interest or collusion