lapping
- The process of dishonestly using funds that someone has been entrusted with, and hiding the deed through the continuous use of other funds given to that person
- A fraud investigation revealed that the business's financial controller had been lapping funds for the last three years.
- To prevent fraudulent practices like lapping, the company implemented stringent financial controls and auditing procedures.
- The auditor was able to detect lapping when she observed irregularities in the cash transactions.
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