Question：'Teeming and lading' is an irregularity involving extraction of assets by unauthorised persons; the opportunity to perpetrate this class of fraud is enhanced where there is unsatisfactory segregation of duties.

　　Poor segregation between which of the following areas can provide the opportunity for this type of irregularity to occur?

　　A. Wages department and cash department.

　　B. Payables ledger and goods inward.

　　C. Stores department and goods outward.

　　D. Receivables ledger and cash receipts.

　　The correct answer is: Receivables ledger and cash receipts.

　　'Teeming and lading' is said to occur when cash is extracted by manipulation of cash receipts and the receivables ledger accounts of individual receivables. The irregularity is operated by diverting cash intended for one receivable to the account of another. Therefore to be able to perpetrate this fraud then the individual must have access to cash receipts and the maintenance of receivable accounts.