CFE – Financial Transactions and Fraud Schemes — Question 14

All of the following methods are useful in the detection of cash larceny schemes EXCEPT:

Answer options

• A. Reconciling cash register totals to the amount of cash in the drawer
• B. Performing surprise cash counts
• C. Having the accounts receivable clerk prepare the bank deposit
• D. Analyzing journal entries made to cash accounts

Correct answer: D

Explanation

The correct answer is D because analyzing journal entries to cash accounts may not directly reveal cash larceny occurrences, whereas the other methods, such as reconciling totals and performing surprise counts, are proactive measures that help in identifying discrepancies and potential theft.