The statement is correct. Destroying records is a recognized, albeit often crude, method of concealing fraudulent activities, including register disbursement schemes. In a register scheme, a perpetrator creates a fraudulent transaction (e.g., a false refund or void) to account for cash they have stolen. The cash register tape or its digital equivalent serves as the primary record of this transaction. By destroying this record, the fraudster attempts to eliminate the evidence that would reveal the discrepancy between the register's transaction log and the actual cash in the drawer, thereby breaking the audit trail and hindering detection. This method applies broadly to many other fraud schemes where a paper or digital trail could expose the perpetrator's actions.

The option "False" is incorrect because the destruction of evidence is a fundamental and documented technique for concealing illicit acts. In the context of register disbursements, the register tape is the direct evidence of the fraudulent transaction used to justify the removal of cash. Stating that destroying this evidence is not a means of concealment would contradict foundational principles of fraud examination and ignore a common, if unsophisticated, method used by perpetrators to cover their tracks.

1. Association of Certified Fraud Examiners. (2023). Fraud Examiners Manual, International Edition.

Section 2: Cash Receipts Schemes, Subsection: Register Disbursement Schemes. This section details how register disbursement schemes are perpetrated and concealed. It explicitly mentions that a fraudster might destroy the records of a fraudulent transaction to hide it. For instance, under the concealment of false voids, the manual notes, "A more primitive way for the fraudster to hide his or her crime is to destroy the records. In a manual system, the fraudster can simply throw away the copy of the receipt that is kept with the register." This principle extends to other register schemes and fraud types.

2. Albrecht, W. S., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2019). Fraud Examination (6th ed.). Cengage Learning.

Chapter 7: Cash Larceny and Skimming. This chapter discusses various cash fraud schemes. In its analysis of concealment, it explains that fraudsters must take steps to hide their actions from the organization. Destroying physical evidence, such as register tapes or customer receipts, is identified as a direct method to prevent management or auditors from discovering the fraudulent transactions.

3. Singleton, T. W., & Singleton, A. J. (2010). Fraud Auditing and Forensic Accounting (4th ed.). John Wiley & Sons.

Chapter 5: Cash Fraud Schemes. This text describes the mechanics of cash misappropriation. When discussing concealment strategies, it notes that perpetrators often resort to destroying, altering, or creating false documentation. For register schemes, the destruction of the register tape is a key example of eliminating the primary source document that would evidence the crime. The text emphasizes that concealment is a critical phase of the fraud act itself.