I have chosen to discuss lapping fraud. Lapping fraud, as described in "The Definitive Guide to Accounts Receivable's Fraud," seems to be as if an A.R. clerk is running an internal Ponzi scheme. In a lapping fraud scheme, the accounting clerk is constantly "robbing Peter to pay Paul." It starts with the defrauding representative stealing a payment made by client and then covering it up with the payment from the next customer. The books will remain behind the number of payments used to cover up the stolen funds. Lapping fraud is often occurring in conjunction with another type of fraud such as skimming fraud where an incoming payment is intercepted and pocketed by the fraudster before the clerk records it the accounting. To cover up the stolen payment the fraudster representative will cover the payment with a subsequent payment, thus leaving a revolving gap. The skimming part is when the client "skims" the payment before it hits the books, and the lapping part is the subsequent cover-up. According to the article, "The Definitive Guide to Accounts Receivable's Fraud," a company can prevent fraud by implementing various systems to prevent and discover fraud. These systems range from accessing the integrity of the company's current systems, separating tasks as well as creating checks and balances, and lastly, keeping an eye out for changes in employees' behaviors that may signal personal issues which could potentially lead to acting out of character