emes 10. How do fraudulent disbursements at the cash register differ from other How can theft and alteration of outgoing company checks be prevented or detected? register frauds? MULTIPLE CHOICE QUESTIONS 1. Which of the following is not one of the five major categories of fraudulent disbursements? C. Creating a check to an employee for fictitious travel expenses D. Creating a check and altering the payee after the check is signed A. Payroll schemes B. Expense reimbursement schemes C. Shell company schemes D. Billing schemes 5. Which of the following is indicative of the actions of the forged maker perpetrator? A. Issues two checks for the same invoice and gets both signed by an authorized signatory. B. Issues two checks for the same invoice and fraudulently signs and cashes the second check C. Issues two checks for the same invoice and runs both through the automatic check-signing machine. D. Issues two payroll checks to himself and gets both signed by an authorized signatory. 2. Which of the following is the first step to forma shell company? A. Obtain a certificate of incorporation from the state. B. Open a bank account. C. Obtain a tax identification number. D. File the company by-laws at the local court house. 3. Which of the following is an integral step in a pay-and-return scheme? A. Establish a shell company. B. Misappropriate the incoming check related to returned goods and deposit the check in a bank account other than the company's C. Purchase legitimate goods that are paid by the organization and return them. 6. Which of the following is not a method to deter, prevent, and detect the theft and alteration of outgoing accounts payable checks? A. Identify vendors with no mailing address or phone number. B. Identify vendors with a mailing address that matches an employee's address. D. Adjust the legitimate good inventory to conceal the shortage related to the returned goods. C. Hand each paycheck to the employee while checking appropriate identification. 4. Which of the following is an example of check tampering? A. Creating a check for a ghost employee B. Creating a check payable to a shell company D. Identify, review, and summarize all manual checks not created through the accounts payable system. Module 5: Register Disbursement Schemes 191 7. For a ghost employee, which of the following is not one of the four primary steps needed to make this scheme work? A. Delivery of the paycheck to the ghost B. Input a valid home address for the ghost C. Adding the ghost to the payroll records D. Creating timekeeping information for the ghost 9. Which of the following red flags is commonly associated with fictitious expense reimbursement schemes? A. Patterns when expense reimbursements are for the same amount B. Ghost employees receiving expense reimbursements C. Cash disbursements where the canceled checks have been altered D. Billing errors from a problem vendor 8. Which of the following is not a typical method that employees use to overstate legitimate expenses on their expense reports? A. Create receipts B. Purchase an item at an inflated price and request reimbursement at that price while obtaining a vendor refund. C. Purchase more quantity than is necessary and request reimbursement. D. Alter the delivery paperwork for inventory receipts at the warehouse. 10. Which of the following red flags is seldom associated with cash register disbursement frauds? A. Excessive voids B. Uncashed personal checks in the cash drawer received from employees C. Excessive customer refunds Higher than expected uncollectible receivables D. FRAUD CASEBOOK Sources: Need help with all multiple choice questions