CFE – Financial Transactions and Fraud Schemes — Question 47

Schemes in which an employee physically misappropriates cash that has already appeared on the victim organization’s books are known as:

Answer options

• A. Understated sales skimming schemes
• B. Cash larceny schemes
• C. Unrecorded sales skimming schemes
• D. General ledger schemes

Correct answer: B

Explanation

The correct answer is B, cash larceny schemes, which specifically involve the theft of cash that is already recorded in the company's accounts. Options A and C refer to skimming schemes that involve manipulating sales figures rather than directly stealing cash, while D, general ledger schemes, typically pertain to accounting manipulations rather than cash theft.