4. Salma is a hair stylist at Jaffa Salon. The salons policy states that stylists receive 50 percent of the revenue they generate as their compensation. Salma grew tired of sharing her income with the salon and decided she wanted to make more money. She continued seeing her existing clients at the salon, but when new clients called for an appointment, Salma lied and told them the salon was completely booked for the next few months. She then offered to come to their homes and cut their hair for 10 percent less than what the clients would be charged at the salon. She did not report the house call appointments to the salon, and was therefore able to keep all the income she generated from these side clients. This is an example of what type of scheme?

5. Ahmad works as a city councilman in large city in the West Bank. As part of his duties, he negotiated the purchase of some land in order to build a new water treatment plant for the city. The land was sold to the city by Mahmoud for terms that were favorable to the city. After the sale was finalized, Mahmoud treated Ahmad and his wife to an all-expenses-paid dead sea in Jordan . This type of fraud is known as:

6. While conducting the annual audit of National Companys financial statements, Alex Abu Ali, CFE, CPA, came across some fishy findings. The company recorded several large and unusual sales at the end of the fiscal year to customers Alex had never heard of. Further, all of these sales occurred within the companys specialty division, which had previously been in danger of closing due to recurring losses. Based on these findings, what type of financial statement fraud is likely occurring?