Cash Larceny, Part Four

Alteration of manual cash receipt forms

By Joseph R. Dervaes, CFE, CIA, ACFE Fellow
Fraud's Finer Points: Case history applications

Unscrupulous cashiers often alter manual cash receipt forms for customer payments to misappropriate funds from the entity. These manual cash receipt forms usually come in a book with three or more receipts to a page. Each receipt has three copies:

  • original (white), which is given to customers as a record of their payment;
  • accounting (yellow), which is retained with the daily activity reports for accounting purposes and subsequently used to verify the sequential use of all cash receipts forms issued by each function; and
  • file (pink or blue), which is retained and stored permanently as the used book of manual cash receipt forms issued by each function collecting revenue.

Cashiers alter cash receipt forms to commit fraud using two primary methods. In the first method, the cashier removes the original copy of the cash receipt form from the receipt book before completing any of the information. He then completes all data entries on this stand-alone original cash receipt form and gives it to the customer once the payment has been received. The actual amount of the payment is shown on the customer's copy of the cash receipt form.




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