Ben Rogers works as a cashier for Tillis Sporting Goods. One afternoon, he asked his sister Dawn to come into the store. When she arrived, Ben put three watches, two fishing reels, and four pairs of sunglasses in a sack and gave it to her. Dawn walked out of the store, sold two of the watches, and returned to the store later to return the other items for a refund. What type of asset misappropriation has been committed?
a. Sales skimming
b. Pay-and-return scheme
c. False refund scheme
d. Inventory larceny scheme

Inventory larceny scheme: It is a scheme of misappropriation or stealing of inventory or any other assets by the employee from the premises of the company without recording the theft in the books of accounts. These assets are stolen to be sold to the third party or for personal use.

There are several non-cash thefts by employees, including inventory or other expensive assets of the company. Misuse of inventory or other asset is also included in a larceny scheme.

In the given case, Ben Rogers asked his sister Dawn to come into the store. When she arrived, Ben put three watches, two fishing reels, and four pairs of sunglasses in a sack and gave it to her, which is a clear case of asset misappropriation and it is called Inventory larceny scheme.