The “Three R’s” of Skimming

There are numerous methods of skimming and many reasons why it is done. This article walks you through one civil case resolved by a forensic accountant and highlights the difference between a criminal case and civil case. It also addresses numerous types of skimming and how they are perpetuated and caught.

1. What is the difference in the decision making process in criminal case and a civil case? What does this difference mean?

2.  Skimming can occur before or after the recognition of revenues. What are some of the common ways revenue skimming occurs and what are some of the effective ways to combat it?

3.  Lapping is a common concealment technique which is usually associated with less sophisticated individuals. Why does the “educated criminal” shy away from lapping? What are the possible ways to keep lapping concealed after the perpetrator leaves the firm?

4.  What are some of the techniques used to detect skimming and how would you make their presence known to deter skimming?

(Joseph T. Wells, The CPA Journal Online. Retrievable online at http://www.nysscpa.org/cpajournal/2007/607/essentials/p60.htm)

Veggies at the Movies?

In response to growing awareness of obesity, the head of Sony Pictures is encouraging movie theater owners to sell healthier snacks in their theaters. While no one is proposing that movie watchers munch on broccoli or spinach while they enjoy a movie, healthier offerings such as dried apple chips and air-popped popcorn are being suggested. But not everyone agrees. Some people argue that splurging is OK when you’re out for an evening at the theater.
Since movies are in the business of promoting “image” they have a unique opportunity to influence peoples’ choices.

Questions:
1. If movie theater owners begin to offer healthier snacks, what might be the impact on their profit margin?
2. If movie theater owners begin to offer healthier snacks, what types of extra costs could they expect to incur and why? (Hint: For example consider spoilage costs related to fresh fruits.)
3. If movie theater owners begin to offer healthier snacks, what sorts of promotions or tie-ins might movie theater owners be able to offer in order to increase their overall sales revenue?

(Retrievable online at: http://www.cnn.com/video/data/2.0/video/living/2010/04/02/dnt.wynter.movie.gut.check.cnn.html)

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