How Employees Steal Using a Check-for-Cash Scheme

Day 6 of 30 Days of Fraud

The Theft

Kelly is a receipts clerk in the City of Whosville. She normally collects about $25,000 each day with $8,000 of this being in cash and the remainder in checks. Kelly, in accordance with city policy, receipts all monies she receives, but she does not note on the receipt whether the payment is cash or check.

Check for cash theft

The picture is courtesy of AdobeStock.com

Kelly also opens the mail and receipts those checks. Each month the city receives about a dozen alcohol tax checks–each made out to the City of Whosville–in the range of $3,000 to $6,000 each.

Kelly wants to take a trip overseas, but she needs about $15,000 which he doesn’t have. But then she has a novel idea.

She could not receipt an alcohol tax check, place it in her cash drawer and take out an equivalent amount in cash. Since she doesn’t note whether the payments received at his cash window are cash or check, no one will know–the total amount in his cash drawer at the end of the day will reconcile to the receipts written. Over a three month period Kelly steals $17,505, and no one notices.

The Weakness

The cash receipts issued do not note whether cash or checks were received. No one–such as supervisor–is reconciling the composition (total cash received and total checks received) of payments received to the receipts (which should note whether each payment is cash or check).

The Fix

Each receipt should specify the type of payment received (cash or check). Also, the budgeted alcohol tax amount should be compared to the total received.

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