The most difficult asset misappropriation fraud scheme to detect, because it leaves no starting point or audit trail for auditors to investigate, is?

Skimming is considered the most difficult asset misappropriation fraud scheme to detect because it involves the theft of cash before it has been recorded in the accounting system. This type of fraud typically occurs at the point of sale or during cash handling, where the perpetrator takes money directly, thereby preventing any traceable audit trail from being created. Since the cash is removed before it gets recorded in the company's financial records, there is often no documentation or starting point for auditors to follow.

In contrast, other types of fraud, such as non-cash larceny, fraudulent disbursements, and expense reimbursement fraud, usually involve transactions or documentation that can be traced back and reviewed. For example, fraudulent disbursements involve falsifying invoices or other documents that still leave a record, allowing for a potential audit trail. This inherent lack of a paper trail makes skimming particularly challenging to detect, as auditors may not even be aware that the theft has occurred until discrepancies in cash flow become apparent.