CONDITION	AFFECTED ACCOUNT	AFFECTED ACCOUNT
EXAMPLE The accounting department's chief bookkeeper handles and processes cashreceipts. By deferring the recording of cash received from customers, the bookkeeper can conceal a cash shortage. This is done by applying cash received from one customer to the account of another customer who has already made a payment. As long as there is a steady payment stream by customers, cash can be "pulled out" of the stream and covered by subsequent payments.	CASH	ACCOUNTS RECEIVABLE
a. Globus delayed the recording of a material amount of year 20x1 purchases until 20x2.
b. Management has arranged to have recorded as property, plant & equipment purchases that should have been recorded as inventory. Management has been placing great emphasis on the achievement of earnings projections.
c. Credco is a financial services company. Recently, it transferred its receivables to a third party in exchange for cash. Credco recorded the transfer as a sale of the receivables. The auditors are concerned that the transfer may actually be a secured borrowing.
d. Jolly Co.s inventory manager has figured out a way to ship goods to an accomplice without any sales order documents that authorize such shipments, and without creating any records. He has stolen more than $30,000 in inventory this way.