CFE – Financial Transactions and Fraud Schemes — Question 27

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

Answer options

• A. Michael is a cashier at a clothing store. He rings up a fictitious return of a $50 sweater and takes $50 from the cash register.
• B. Scott rings a “no sale” transaction at his cash register, opens the drawer, and takes a $100 bill.
• C. Anne buys a $500 table from a resale shop. Olive, the cashier, rings up a $400 sale on the register and steals the excess $100.
• D. Laura pretends to ring up a sale when Amy makes a purchase, but instead she pockets Amy’s cash and gives her the merchandise without recording the sale.

Correct answer: A

Explanation

Option A is correct because it describes Michael fabricating a return to steal cash directly from the register, which is a classic example of cash larceny. Options B, C, and D involve other forms of theft, such as no-sale transactions and underreporting sales, which do not fit the definition of cash larceny as precisely as option A does.