The most difficult type of cash embezzlement for the auditor to detect is when the cash is stolen before it can be recorded in the cash receipts journal.

Question

Quizplus · Accepted Answer

This type of embezzlement is known as skimming and is challenging for auditors to detect as there is no record of the cash transaction in the books. Skimming occurs when a dishonest employee handles cash and takes it for personal use before it is recorded in the company's cash receipts journal. Since the cash is not recorded yet, the auditor will not be able to compare the cash amount with the book balance to detect any discrepancies. Therefore, this type of embezzlement is the most difficult to detect.

The Most Difficult Type of Cash Embezzlement for the Auditor