Ways of covering;

              Bulletin HASKINS & SELLS 83
Ways of Covering
PARAPHRASING the well-known
quotation of "nothing succeeds like
success," it may be said, "Nothing illus­trates
the application of a principle like a
concrete case." The work of detecting
financial irregularities is complicated, ex­acting,
and must be carried on, often
under troublesome conditions and mental
strain, with speed and sureness. Admit­tedly
it is trying work. But any amount
of abstract generalization will not convey
adequately, like actual cases, an idea of
the difficulties involved in this kind of
work. One fundamental fact must always
be kept in mind, namely, if there has been
a defalcation, there is strong likelihood
that an attempt has been made to cover it.
The ways of covering are legion. As a
matter of interest as well as for the educa­tional
value which attaches thereto, several
cases from actual experience, illustrating
ways of covering, are reproduced below.
The cashier and bookkeeper of a whole­sale
jewelry house perpetrated a shortage
of about $8,000, through the interception
of collections from customers, crediting
certain customers' accounts without en­tering
the corresponding amounts in the
cash book, and substituting certain checks
in place of currency when making deposits
in the bank.
In a clumsy attempt to bring the details
of the customers' debit balances into
agreement with the control certain ac­counts
were charged with fictitious
amounts or existing charges were increased
without any corresponding credits.