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

ACFE CFE-Fraud-Schemes-and-Financial-Crimes Question Answer

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

Laura pretends to record a sale on the cash register when Amy makes a purchase, but she steals Amy’s cash instead and gives her the merchandise without recording the sale.

Anne buys a $500 table from a shop. Olive, the cashier, records a $400 sale on the cash register and steals the excess $100.

Scott performs a No-Sale transaction on the cash register, opens the register drawer, and takes a $100 bill.

Michael is a cashier at a store. He records a fictitious return of a $50 jacket and takes $50 from the cash register.

Explanation:

The ACFE Manual treats Cash Larceny under Asset Misappropriation: Cash Receipts , and specifically identifies “Theft of Cash from the Register” as a cash larceny scheme.

Cash larceny differs from skimming because in a larceny scheme, the cash has already been recorded on the books before it is stolen. By contrast, skimming occurs before the cash is recorded. The Manual separately covers Skimming and includes schemes such as understated sales , showing that skimming involves stealing cash receipts without fully recording the transaction.

Why C is correct

In Option C, Scott performs a No-Sale transaction, opens the drawer, and removes cash directly from the register. This is the clearest example of theft of cash from the register , which the Manual classifies as cash larceny .

Why the other options are incorrect

A. Laura pretends to record a sale, steals the cash, and gives the customer the merchandise without recording the sale.

This is skimming , not cash larceny, because the sale is never recorded. The Manual treats unrecorded sales thefts under Skimming .

B. Olive records a $400 sale on a $500 purchase and steals the extra $100.

This is also skimming , specifically an understated sales type of scheme, because the full amount of the sale is not recorded. The difference is diverted before complete recording.

D. Michael records a fictitious return and takes $50 from the register.

This is not cash larceny. It is a register disbursement scheme , specifically a fictitious refund , which the Manual covers under Fraudulent Disbursements .

Conclusion

Because Option C involves taking cash directly from the register after access is obtained through a No-Sale transaction, it is the best example of cash larceny under the ACFE Manual.

References

ACFE Fraud Examiners Manual, 2020 International Edition

Asset Misappropriation: Cash Receipts — Cash Larceny / Theft of Cash from the Register

Asset Misappropriation: Cash Receipts — Skimming / Understated Sales

Fraudulent Disbursements — Register Disbursement Schemes / Fictitious Refunds

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