An employee decides to steal cash from his/her employer.What would be the best way to conceal such a fraud?

Question

Quizplus · Accepted Answer

Recording the stolen cash as an expense would make it seem like the cash was used for a legitimate business purpose. This could easily go unnoticed by the employer, especially if the employee has access to the accounting records. Writing down accounts payable or increasing accounts receivable might raise suspicion, as it could be easily verified by the employer. Writing down as dividend paid to shareholders would not be appropriate as dividends are paid from the profits earned by the company and stealing cash is not a legitimate way to earn profit.

An Employee Decides to Steal Cash from His/her Employer