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Exam CFE - Financial Transactions and Fraud Schemes All Questions

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Exam CFE - Financial Transactions and Fraud Schemes topic 1 question 143 discussion

Which of the following is an example of a cash larceny scheme?

  • A. Paul sold insurance policies to individuals but never filed the policies with the carrier. He then stole the customers’ premium payments, which he was able to do since the carrier did not know the policies existed.
  • B. Mark, a cashier, knew Joe's register access code. He logged in as Joe and processed customer transactions as usual. He then helped himself to $50 from the register at the end of his shift.
  • C. Sarah returned a $250 wall mirror to a home goods store. Jenna, the salesclerk, rang up a $350 return and kept the remaining $100.
  • D. Emily is an accounts receivable clerk. She pocketed Customer A’s monthly payment. When Customer B's payment arrived, she applied it to Customer A's account. When Customer C's payment arrived, she applied it to Customer B's account.
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Suggested Answer: C 🗳️

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AjaiArjuna
3 months, 3 weeks ago
Selected Answer: B
Correct Answer: B. Mark, a cashier, knew Joe's register access code. He logged in as Joe and processed customer transactions as usual. He then helped himself to $50 from the register at the end of his shift. 💡 Explanation: What is Cash Larceny? Cash larceny is the theft of cash that has already been recorded on the organization’s books. It typically happens after the cash has been collected (e.g., from the register, deposit, or petty cash fund). This is different from skimming, where the cash is stolen before it's recorded in the accounting system.
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