Most companies tend to overlook larceny because employees tend to steal small amounts that may not have a significant effect on the overall revenues. However, when the practice can continue, the small amounts may sum up to become material amounts that will push the company into financial distress.
Cash larceny refers to the act of stealing cash that has already been recorded in the books of accounts during a specific period. This fraud is perpetrated by an employee, without the consent or knowledge of the employer. Larceny often occurs at the cash register, cash collection point, or from deposits in transit. However, this form of theft is detectable if the company maintains accurate cash records, and it can be identified during cash reconciliations.