Which of the following statements is true regarding skimming schemes?

Skimming schemes involve the theft of cash before it is recorded in the accounting system, making the statement that they involve theft of cash before it appears on books accurate. In skimming, an individual takes cash at the point of sale or during a transaction, which bypasses the company's accounting records altogether. This means that the cash does not appear on the books initially, making it challenging to trace.

This characteristic inherently makes skimming more insidious than other forms of fraud, like cash larceny, where stolen cash has already been recorded in the books but is removed afterward. Skimming thrives on the absence of any record, contributing to its effectiveness as a fraud technique.

Furthermore, because skimming does not leave an immediate or clear audit trail, it becomes much harder to detect, aligning with the idea that it is often less evident than cash larceny schemes. While manipulation of records does occur in cash larceny—not typically the case with skimming—such manipulation is not a fundamental part of the skimming process itself. Thus, the statement regarding skimming schemes accurately reflects their operational mechanics and effects.