Fictitious entities created for the sole purpose of committing fraud are called: - Shell companies
Categories of billing schemes include which of the following? - Shell company schemes
In the Fraud Tree, all of the following are categories of fraudulent disbursements except: - Cash larceny
In a ______________ scheme, the perpetrator uses false documentation to cause a payment to be
issued for a fraudulent purpose. - Billing
Warning signs of a shell company scheme include which of the following? - All of the above
A pass-through scheme is usually undertaken by someone who works in which department? -
Purchasing
____________________ are schemes in which the employee intentionally mishandles payments that
are owed to legitimate vendors. - Pay-and-return schemes
Which of the following controls can be used to prevent or detect personal purchases on company credit
cards? - Monitoring credit card expenses for unexplained increases in purchasing levels
According to the 2012 Report to the Nations on Occupational Fraud and Abuse, the most common
fraudulent disbursement schemes were: - Billing schemes
Which of the following computer audit tests can be used to detect billing schemes? - All of the above
In one of the case studies in the textbook, a Southeastern medical college was plagued with fraudulent
activity. What started as an investigation into some suspicious expense reimbursement activity
eventually led to the discovery of a fictitious company that was set up to fraudulently bill the college for
, supplies that never existed. What was the first sign that there were more problems than the initial
expense reimbursement fraud? - The administrative assistant suddenly left town when requested to be
interviewed.
In one of the case studies in the textbook, a Southeastern medical college was plagued with fraudulent
activity. What started as an investigation into some suspicious expense reimbursement activity
eventually led to the discovery of a fictitious company that was set up to fraudulently bill the college for
supplies that never existed. How was the case resolved? - The perpetrator was convicted and placed on
probation, and partial restitution was ordered.
In one of the case studies in the textbook, Albert Miano, the facilities supervisor for a popular magazine,
submitted phony invoices. When Miano received the checks for the phony invoices, he forged the
contractor's signature. He then endorsed the check in his own name. How was the fraud caught? - The
new chief of internal audit found it by accident.
In one of the case studies in the textbook, Albert Miano, the facilities supervisor for a popular magazine,
submitted phony invoices. When Miano received the checks for the phony invoices, he forged the
contractor's signature. He then endorsed the check in his own name. What controls weaknesses did the
company have that facilitated Miano's scheme? - All of the above
Check tampering is unique from other fraudulent disbursement schemes because in a check tampering
scheme: - The perpetrator physically prepares the fraudulent check.
To successfully carry out and conceal a check tampering scheme, the fraudster must have: - All of the
above
Which of the following choices is not a category of check tampering? - Unauthorized endorsement
schemes
To prevent and detect forged maker schemes, an organization should: - All of the above
Which of the following is not a type of altered payee scheme? - Forged maker
To prevent and detect forged maker schemes, an organization should: - All of the above
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