Fraud Test 2

Front 1

cash larceny

Back 1

the intentional taking away of an employer's cash (the term cash includes both currency and checks) without the consent and against the will of the employer.

Front 2

Where do most cash larceny schemes involve the theft of cash?

Back 2

1. At the point of sale
2. From incoming receivables
3. From the victim organization's bank deposits

Front 3

5 Methods used to conceal larceny that occurred at the point of sale?

Back 3

1.Thefts from other registers
2.Death by a thousand cuts
3.Reversing transactions
4.Altering cash counts or register tapes
5.Destroying register tapes

Front 4

Thefts from Other Registers

Back 4

Taking money from someone else's cash register.

Front 5

Death by a Thousand Cuts

Back 5

A very unsophisticated way to avoid detection, to steal currency in very small amounts over an extended period of time.

Front 6

Reversing Transactions

Back 6

Using false voids or refunds, which can cause the register tape to reconcile the amount of cash on hand after the theft.

Front 7

Altering Cash Counts or Cash register Tapes

Back 7

some fraudsters alter the cash counts from their registers to match the total receipts reflected on their register tape.

Front 8

Destroying Register tapes

Back 8

This doesn't allow reconciliations. If one doesn't know how much cash is supposed to be on hand at the time of the cash count, one can't know if the cash on hand is an amount net of theft.

Front 9

Force balancing

Back 9

making unsupported entries in the company's books that produced a fictitious balance between receipts and ledgers.

Front 10

The most important factor in preventing cash larceny from the deposit is...?

Back 10

Separating Duties. Calculating daily receipts, preparing the deposit, delivering the deposit to the bank, and verifying the receipted deposit slip are duties that should be performed independently of one another.