If the assets are intentionally purchased by the company but simply misappropriated by the fraudster, this is referring to as:

Inventory larceny is the theft of inventory that has already been recorded on the victim organization's books. The scenario describes assets that were "intentionally purchased," meaning they were legitimately acquired and would have been entered into the company's accounting system and inventory records. The subsequent misappropriation by the fraudster is a theft of an on-book asset, which is the definition of larceny. This distinguishes it from schemes where assets are stolen before being recorded (skimming) or schemes involving the fraudulent purchase process itself.

B. Asset receiving scheme: This involves stealing assets as they are delivered, before they are officially recorded on the company's books, often by falsifying receiving reports.
C. Fraudulent purchase: This involves causing the company to buy goods for the fraudster's personal use or from a shell company, where the fraud is in the purchase transaction itself.
D. Falsify shipping: This is a method used to conceal inventory theft by creating fraudulent shipping documents to make it appear the missing goods were sold and shipped.

1. Association of Certified Fraud Examiners. (2023). Fraud Examiners Manual. Section 2: Asset Misappropriation

Subsection: Inventory and Other Assets. The manual defines larceny of non-cash assets as the theft of items that have already been recorded in the company's accounting records

distinguishing it from skimming

which is the theft of off-book assets. The described scenario fits the definition of larceny.

2. Singleton

T. W.

& Singleton

A. J. (2010). Fraud Auditing and Forensic Accounting (4th ed.). John Wiley & Sons. In Chapter 7

"Asset Misappropriation

" the authors differentiate inventory larceny as the theft of inventory already on hand from other schemes like stealing incoming goods at the receiving dock.

3. Albrecht

W. S.

Albrecht

C. O.

Albrecht

C. C.

& Zimbelman

M. F. (2019). Fraud Examination (6th ed.). Cengage Learning. Chapter 9

"Theft of Inventory and Other Assets

" explicitly states that larceny schemes involve the theft of assets that are already on the books

contrasting them with skimming schemes where assets are stolen before being recorded.