Larceny Definition
Larceny Definition

See Also:
Skimming (fraud)
The Fraud Triangle
Accounting Fraud Prevention using QuickBooks
Audit Scope
Forensic Audit

Larceny Definition

The Larceny definition is the act of stealing cash from a company after it has been recorded on the company books or accounting records. Larceny is often easier to detect because it is on the books, but can often go undetected for a long time.

Meaning of Larceny

Larceny most often occurs at the point of sale or another point of the business where cash is held. It is much easier to detect than skimming and is therefore less common in the business place. However, larceny in business occurs everyday. Because the cash appears within the accounting records, the cash taken should result in an imbalance and alert the company.
Many often overlook larceny because the amounts are usually small and considered immaterial. If the larceny scheme were allowed to continue though, then it could very well add up to material amounts. Best describe this by the saying “death from a thousand cuts.” In other words if a company does not look for the little frauds like larceny then it could definitely push the company into financial trouble. Companies should therefore take note of all the little changes in cash to try and pick up on the scheme as quickly as possible.
Check out our free Internal Analysis whitepaper to assist your leadership decisions and create the roadmap for your company’s success!

Larceny Definition
[box]Strategic CFO Lab Member Extra
Access your Exit Strategy Checklist Execution Plan in SCFO Lab. The step-by-step plan to put together your exit strategy and maximize the amount of value you get.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]
Larceny Definition

The Accounting Gap Between Large and Small Companies

The Accounting Gap: It’s unfortunate, but true. A large gap exists between the accounting departments of large or publicly traded companies and smaller or private companies. In our past 25 years of consulting we’ve noticed that more often than not, these smaller/private companies will fill the gap with Bookkeepers, rather than the degreed Accountants/CPAs they

Read More »

The Struggles of Private Company Accounting

Building your Accounting Department… When I meet a business owner operating at a successful $10+ mil in revenue I often hear them say “My CPA…” and I immediately know they are referring to a tax CPA. One thing ALL entrepreneurs have in common is that they have to file a tax return. So from day

Read More »

Financial Ratios

See also:Quick Ratio AnalysisPrice to Book Value AnalysisPrice Earnings Growth Ratio AnalysisTime Interest Earned Ratio Analysis Use of Financial Ratios Financial Ratios are used to measure financial performance against standards. Analysts compare financial ratios to industry averages (benchmarking), industry standards or rules of thumbs and against internal trends (trends analysis). The most useful comparison when

Read More »


Financial Leadership Workshop

MARCH 28TH-31ST 2022


Financial Leadership Workshop


June 12-15th, 2023

WIKI CFO® - Browse hundreds of articles