Ch 3 - Larceny Flashcards
1
Q
What is larceny?
A
Stealing any property
2
Q
What is Cash Larceny?
A
Stealing cash that has already been entered into the accounting system
3
Q
How is cash larceny normally detected?
A
Internal or external audits
4
Q
What are 3 common categories of larceny?
A
Point of Sale
Receivables
Bank Deposits
5
Q
What are some examples of point-of-sale schemes?
A
Cash Larceny -
- Theft from other registers
- Small amounts that are dismissed as errors
- Reversing transactions - false foids or refunds
- Altering cash counts
- Destroying records
6
Q
What are prevention and detection techniques for point-of-sale schemes?
A
Cash Larceny -
- Segregate receipt from deposit making
- Independent cash counting
- Reconciling sales to register and cash to bank deposit
- Discrepancies between sales and cash on hand
- Trends that exceed the normal level of “errors”
- Analyze by employee: Sales/Cash discrepancies, discounts, returns, adjustments, etc.
7
Q
How are thefts from deposits normally conducted?
A
Cash Larceny -
- Preparing a new deposit slip
- Lapping deposits
- Stealing from deposits in transit
8
Q
What are prevention and detection techniques for thefts from deposits?
A
Cash Larceny -
- Reconcile bank deposits with cash receipts
- Segregate receipt from reconciliation and deposit
- Itemized Deposit Slip
- Be careful who you entrust with the deposit
- Get cash to the bank ASAP
- Follow up on Bank Reconciliation discrepancies
