Cash Larceny

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Chapter 3

• Cash Larceny

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Pop Quiz

• What is the difference between larceny and
  skimming?
•  

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Larceny
Of Cash on Hand
From the Deposit
Other
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What is Cash Larceny?

• Intentional taking away of an employers cash
  without the consent and against the will of the
  employer
• Fraudulent disbursements
• Cash receipt schemes

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How Frequent?

• 16.2 of all fraud cases
• Median loss 73,000
• How much is lost?
• About ¼ -- 100 500k
• Who did it? And who got the most?
• How were they found out?
• Auditors?
• Size of victim organization?

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Cash Larceny Schemes

• access to cash
• Point of sale
• Incoming receivables
• Bank deposits

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Larceny At The Point of Sale

• Ready cash
• Results?

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Larceny Schemes

• Theft from other registers
• Death by a thousand cuts
• Reversing transactions
• Altering cash counts or cash register tapes
• Destroying register tapes

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How Can you Detect/Prevent Cash Larceny at the
Point of Sale?

• separation of duties
• Independent checks
• Control of cash
• Check discrepancies/patterns

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Larceny of Receivables

• What is it?
• How is it hidden?
• Force balancing
• Reversing entries
• Destruction of records

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Cash Larceny From The Deposit

• What is it?
• Controls dont always work

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Cash Larceny From The Deposit -- Types

• Deposit lapping
• . . . .
• Deposits in transit

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Preventing and Detecting Cash Larceny From The
Deposit

• Separation of duties
• Centralized receiving of revenues
• Comparisons
• Bank statement comparisons
• Use of bank night drops