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
ARTICLES YOU MIGHT LIKE

Does your Accounting Department Produce Net Income?

Coaching the Entrepreneur: Learn how to know what you don’t know. How much should I spend on accounting for my company?     I have been in the accounting profession for 32 years, and for the last 6 years, I’ve owned my own consulting firm to assist companies with accounting challenges. There is one common theme that I

Read More »

Is Mexico the New China?

In the wake of the COVID-19 pandemic and escalating tensions with China, American companies are actively seeking alternatives to mitigate their supply chain risks and reduce dependence on Chinese manufacturing. Nearshoring, the process of relocating operations closer to home, has emerged as an explosive opportunity for American and Mexican companies to collaborate like never before.

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

THE ART OF THE CFO®

Financial Leadership Workshop

Days
Hours
Min

August 7-10th, 2023

SHARE THIS ARTICLE
WIKI CFO® - Browse hundreds of articles
Skip to content