Certified Fraud Examiner Practice

Skimming is defined as the theft of cash from a business before it is recorded in the accounting system, which distinguishes it from cash larceny, where cash is stolen after it has been recorded. The key characteristic highlighted in the correct answer is that skimming occurs without the need to directly access the cash register or accounting system where sales are recorded.

In skimming scenarios, employees may take cash before it is noted in sales records, allowing them to pocket the money without alarming the business's financial controls. This lack of direct access to the cash register is what makes skimming a more subtle form of theft; it operates outside the normal transaction processes.

This characteristic also plays a significant role in the detectability of the fraud. Since there is no recorded transaction that corresponds to the missing funds, it can be challenging for businesses to identify that skimming has occurred, particularly if the amounts skimmed are small over time.

In summary, skimming's absence of a need for direct interaction with cash registers or accounting entries is the key reason why the answer is correct.