Reconciling the cash register total to the cash in the drawer is an effective method to detect a cash larceny scheme.

• A. True
• B. False
• C. Not always effective
• D. Depends on the size of the scheme

Answer: (B)

Not all cash larceny schemes are caught by reconciling the register total with the cash on hand. A thief can steal after a sale is recorded and still make the till balance look correct by offsetting the theft with a refund or a void, so the register total matches the cash in the drawer. Conversely, schemes like skimming—taking cash before it’s recorded—may also slip past this check if other records fill in the gap. Because theft can be hidden in these ways, this single reconciliation isn’t a foolproof detector. Stronger detection comes from combining such reconciliations with surprise cash counts, independent verification of sales against deposits, and monitoring of voids and refunds, plus proper segregation of duties.