Chapter 4 – Billing Schemes
1. Categories of billing schemes include which of the following?
a. Shell company schemes
b. Larceny billing schemes
c. Fictitious disbursements schemes
d. All of the above
2. In a scheme, the perpetrator uses false documentation to cause a payment to be ...
1. Categories of billing schemes include which of the following?
a. Shell company schemes
b. Larceny billing schemes
c. Fictitious disbursements schemes
d. All of the above
2. In a scheme, the perpetrator uses false documentation to cause a payment
to be issued for a fraudulent purpose.
a. Purchasing
b. Skimming
c. Larceny
d. Billing
3. In the Fraud Tree, all of the following are categories of fraudulent disbursements except:
a. Payroll schemes
b. Cash larceny
c. Check tampering
d. Billing schemes
4. Fictitious entities created for the sole purpose of committing fraud are called:
a. Ghost companies
b. Non-accomplice vendors
c. Shell companies
d. “Rubber stamp” companies
5. In order to start up a shell company, the fraudster will most likely need which of
the following?
a. Certificate of incorporation
b. Mailing address
c. Bank account
d. All of the above
6. Warning signs of a shell company scheme include which of the following?
a. Invoices lacking details of the items purchased
b. A vendor that is not listed in the phone book
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, c. An unexpected and significant increase in “consulting expenses”
d. All of the above
7. A pass-through scheme is usually undertaken by someone who works in which department?
a. Accounts payable
b. Receiving
c. Purchasing
d. Accounts receivable
8. Which of the following actions is least likely to help prevent and detect schemes
involving fraudulent invoices from non-accomplice vendors?
a. Marking “paid” on every voucher that has been paid
b. Verifying vendor address changes before disbursements are issued
c. Matching all bank statement items to canceled checks
d. Separating the duties of purchasing, authorizing, and distributing payments
9. are schemes in which the employee intentionally mishandles
payments that are owed to legitimate vendors.
a. Pass-through schemes
b. Pay-and-return schemes
c. Shell company schemes
d. Switch-and-swap schemes
10. In a shell company scheme, which of the following methods might a fraudster use to get
a phony invoice approved for payment?
a. Collusion
b. A “rubber stamp” supervisor
c. Falsification of purchase orders and receiving reports
d. Any of the above
11. Purchasing personal items using an organization’s money is what type of scheme?
a. Larceny scheme
b. Billing scheme
c. Pay-and-return scheme
This study source was downloaded by 100000844749689 from CourseHero.com on 05-04-2022 00:23:10 GMT -05:00
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