CFS Asset Misappropriation 2

Question 1

In a 'pay-and-return' billing scheme, the fraudster typically:

Accepted Answer

Overpays a vendor and intercepts the vendor's refund check when returned

Answer

Returns personal purchases to vendors and pockets company reimbursements

Answer

Pays fictitious invoices and routes funds to a shell company

Answer

Issues duplicate payments and voids one before it clears

Question 2

Which of the following is an example of non-cash asset misappropriation?

Accepted Answer

Stealing or misusing company inventory and equipment

Answer

Skimming from customer payments

Answer

Submitting false expense reports for reimbursement

Answer

Creating ghost employees in the payroll system

Question 3

A payroll clerk adds unauthorized overtime hours to her own paycheck each pay period. This is best classified as:

Accepted Answer

Hours and earnings fraud

Answer

Ghost employee fraud

Answer

Commission fraud

Answer

Pay rate alteration scheme

Question 4

An employee 'force balances' the petty cash fund by:

Accepted Answer

Creating fictitious receipts to cover cash shortages caused by theft

Answer

Borrowing petty cash and repaying it before month-end reconciliation

Answer

Using petty cash for purchases above the authorized transaction limit

Answer

Maintaining two separate petty cash funds to confuse auditors

Question 5

An employee uses a company credit card to purchase a personal laptop and codes the charge as 'office equipment supplies.' This is known as:

Accepted Answer

Personal purchases scheme

Answer

Mischaracterized expense scheme

Answer

Fictitious expense scheme

Answer

Equipment larceny

Question 6

Which type of check tampering scheme involves intercepting a legitimately issued check and forging the payee's endorsement to deposit it into an unauthorized account?

Accepted Answer

Forged endorsement scheme

Answer

Forged maker scheme

Answer

Altered payee scheme

Answer

Authorized maker scheme

Question 7

Surprise physical inventory counts are primarily used to detect:

Accepted Answer

Theft or misuse of physical inventory and supply assets

Answer

Billing fraud through fictitious vendor invoices

Answer

Payroll padding and ghost employee schemes

Answer

Check kiting arrangements across bank accounts