Boris turner, cfe, was hired to investigate some suspicious activity in the accounts receivable department of one man and a truck. while examining the company's accounting records, she noticed severa payments posted to customers' accounts that were later reversed with journal entries to "courtesy discounts." what type of scheme might this situation indicate?

This involves Cash Larceny of Receivables

Explanation:

Cash Larceny of Receivables involves stealing of cash that has already been recorded in a companie's books for a specific period.

Forced adjustment entries are posted (reversed journal entries) to balance the companie's accounts.

For example, if cash is received from a customer and posted to his account. After theft of the physical cash, journal entries are posted to reduce balance on customer's account. This is done in a bid to force balance the account and physical cash on hand.

Note: Cash Larceny is more easily discovered compared to Skimming.

In Cash Larceny entries are posted to the companie's books and this leaves an audit trail. While in Skimming the fraudster does not record initial receipt of cash.

Explanation:

Cash larceny of receivables is the act of stealing cash that has already been recorded i in the books of company accounts  at a specific period. This fraud, which is wrecked by an employee and the employer is unaware of it.

After stealing money from the employer, some employees may reverse certain transactions as a way of covering up the cash larceny. They can do this by recording returns that are deceptive and false voids as a way of reducing the amount of cash balance that is reflected in the register log.

Reversing transactions is a way of reducing the balance shown on the register log so that it equals the cash on hand. Like in the case posted in the question the investigator noticed several payments posted to a customers account were later reversed with joirnal entries to "courtesy discounts" , which shouldn't be so. This is a case of cash larceny