Question

Typically, cash larceny is the least common of cash misappropriation, and usually involves the "intentional" taking of employer cash without employer consent. Let me give you a quick difference between skimming, which we talked about earlier, and larceny.

Basically, skimming is theft of funds "OFF BOOKS" and larceny is theft of funds "ON BOOKS".

Can you give any examples of cash larceny schemes?

Answer 1

Following are the examples of cash larceny schemes:-

1. Stealing cash from the register:-

Employees are always lookout for opportunities to steal the money from the cash box whenever they get the chance since it is the easiest way. Also, whatever the level of protection are employed by employer, risk of stealing is always possible.

2. Reversing cash transactions:-

Sometimes. transactions already recorded are reversed by way of posting reversal entry. It is not easy, but when the accounts balances are massive and no frequent cross checks are done, then only this is possible.

3. Cash account altering:-

This is possible when the person who is in charge of recording the cash also keeps the control of cash book where all the details of cash is being recorded.

4. Destroying the cash register logs:-

Cash registers are being destroyed so that no one is able to match the physical cash with recorded cash and they get away from cash fraud.

Larceny is really a serious crime and can be controlled by segregation of duties, rotation of job, surprise cash counts.

In case of doubt, please comment. And it would be great if you can give a thumbs up.