CFE – Financial Transactions and Fraud Schemes — Question 31

Which of the following measures is MOST LIKELY to prevent cash larceny schemes from occurring?

Answer options

• A. Having all employees use the same cash register
• B. Requiring the accounts receivable clerk to deposit cash receipts at the bank and perform bank reconciliations
• C. Restricting other employees from performing the duties of an employee on vacation
• D. Announcing that the company performs surprise cash counts

Correct answer: D

Explanation

Announcing that the company performs surprise cash counts (D) is effective because it creates uncertainty for potential thieves, making them less likely to attempt theft. The other options either do not provide sufficient oversight or may not be effective in preventing cash larceny since they don't create the same level of deterrence.