Cash Larceny is the act of stealing cash which has already been
recorded in the books of accounts.
Cash Larceny can be caught by the following
methods:
- Surprise cash checks: The most popular way to find out cash
larceny is to do surprise cash counts at random days. Frauds will
be identified if there is any difference between cash as per books
and cash available in physical.
- Forensic Audits - The company can hire a special forensic
auditor to check if there's any cash fraud or cash larceny. They
are professional fraud examiners trained for finding frauds.
- Separation of duties and mandatory holidays - Employees should
be encouraged to go on leaves, as frauds can be found out only when
such employee is not on leave.
- Bank Reconciliations - One can easily find out about frauds if
we do regular bank reconciliations and check matches.