Gaps in the sequence of transactions on the register log might indicate that a fraudulent register disbursement scheme is taking place.

• A. It could be both
• B. True
• C. False
• D. Not sure

Answer: (B)

Gaps in the sequence of transactions on a register log are a red flag for manipulating cash disbursements. A register log is meant to capture every disbursement in exact order, so missing entries or breaks in the sequence suggest that some transactions may have been deleted, altered, or hidden to conceal theft. In a fraudulent register disbursement scheme, someone might void or remove records or post out of order to cover up the amount taken. Because keeping complete, sequential records is a basic control for petty cash and register disbursements, any gap should prompt scrutiny and reconciliation. There can be legitimate reasons for occasional gaps, but the presence of gaps aligns with fraud indicators, so this statement is true.