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Chapter 4: Cash Larceny PowerPoint PPT Presentation


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Chapter 4: Cash Larceny . Cash Larceny . Larceny is the least common of the three major cash misappropriation categories. 45 cash larceny cases were reported, with a median loss of $22,000. . What is Cash Larceny? . Definition: Intentional taking Of employer’s cash

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Chapter 4: Cash Larceny

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Chapter 4 cash larceny l.jpg

Chapter 4: Cash Larceny


Cash larceny l.jpg

Cash Larceny

  • Larceny is the least common of the three major cash misappropriation categories.

  • 45 cash larceny cases were reported, with a median loss of $22,000.


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What is Cash Larceny?

  • Definition:

    • Intentional taking

    • Of employer’s cash

    • Without employer’s consent

  • “Cash” includes currency and checks


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Cash Larceny v. Skimming

  • Skimming is theft of off-book funds

  • Cash larceny is theft of on-book funds

  • Cash larceny:

    • Less common than skimming

    • Less costly than skimming

    • Direct audit trail


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Cash Larceny Schemes

  • Theft of cash on hand

    • From cash register or cash box

    • Posted customer payments

  • Theft from the deposit


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Theft of Cash On Hand

Concealing larceny of cash on hand

  • Unconcealed

  • Personal check in register

  • Reversing transactions (voids/refunds)

  • Alter cash counts

  • Destroy/alter transaction records


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Cash Larceny from the Deposit

  • Perp usually in charge of daily deposit

  • Steal the currency, deposit the checks

  • Poor controls are the key

    • One person prepares/makes deposit, reconciles bank account

    • Failure to reconcile deposits/receipts

    • Deposit left unattended before going to bank


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Concealing Larceny from the Deposit

  • Deposit lapping

    • Steal Day 1 deposits

    • Cover with subsequent receipts

  • Deposits in transit

    • Missing money carried on books as “deposits in transit”


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Cash Larceny - Countermeasures

  • Investigate shortages in cash drawers, deposits, etc.

  • Investigate missing or altered sales records

  • Have two people independently verify deposits on bank statement to postings in general ledger

  • Maintain and review daily cash availability amounts


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Cash Larceny - Countermeasures

  • Have deposits delivered to bank under dual control

  • If fraud suspected, verify deposit prior to dispatch without suspect’s knowledge; then contact bank to confirm that deposit was made

  • Have deposits made in night drop, verify at beginning of next day

  • Make sure deposits in transit are first items to clear on next statement


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Cash Larceny Controls

Separate the following duties:

  • Cash receipts

  • Cash counts

  • Bank deposits

  • Deposit receipt reconciliation

  • Bank reconciliation

  • Posting deposits

  • Cash disbursements


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Cash Larceny Controls

  • Surprise cash counts

  • Review check and cash composition of daily bank deposit

  • Review timeliness of deposits from locations to central treasurer function

  • Observe cash receipting operations at all points of entry


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