Cash Removal and Inventory Debit Scheme

D

The situation described in the question is an example of "Concealing register disbursement." This type of fraud involves removing cash from the register and covering it up by recording a false transaction. In this case, the employee is removing cash from the register while also debiting an item back into the inventory, which gives the appearance that the item was returned, and the cash was deposited.

This type of fraud can be difficult to detect because it involves altering the books and records to conceal the theft. The employee may also be able to cover up the fraud by using their position to manipulate or override the system.

To prevent this type of fraud, companies can implement internal controls such as segregation of duties, regular audits, and strict cash handling policies. Additionally, companies should train their employees on fraud awareness and encourage them to report any suspicious behavior.

In summary, the scenario described in the question involves an employee concealing cash theft by recording a false inventory transaction. This type of fraud is known as "Concealing register disbursement."