9. Which of the following methods can be used to perpetrate a fictitious expense reimbursement scheme?
a. Creating counterfeit receipts
b. Stealing blank receipts
c. Submitting expenses that were paid by a third party
d. All of the above
10. What type of expense reimbursement scheme occurs w...
Chapter 7 – Expense Reimbursement Schemes
1. Because they leave a solid audit trail, expense reimbursement schemes are
generally easier to detect than other types of fraud schemes.
a. True
b. False
2. Expense reimbursement schemes include which of the following?
a. Multiple reimbursements
b. Mischaracterized expenses
c. Overstated expenses
d. All of the above
3. Claiming personal travel as a business expense is an example of what type of
expense reimbursement scheme?
a. Multiple reimbursements
b. Overstated expense reimbursements
c. Mischaracterized expense reimbursements
d. Altered expense reimbursements
4. Which of the following procedures can be used to prevent mischaracterized
expense reimbursement schemes?
a. A policy should be established and communicated to employees regarding
what types of expenses will and will not be reimbursed.
b. Employees should be required to sign their expense reports before
being reimbursed.
c. The internal audit department should review all expense reports under
a certain dollar amount.
d. None of the above
5. Which of the following procedures can be used to detect mischaracterized
expense reimbursement schemes?
a. Compare the dates of claimed reimbursable business expenses to
the employees’ work schedules.
b. Compare current expense reimbursement levels to amounts for prior years.
c. Compare current expense reimbursement levels to budgeted amounts.
d. All of the above
6. If an employee submits a photocopy of a receipt as support for a business
expense, the expense should be independently verified before it is reimbursed.
a. True
b. False
7. An altered or forged receipt can indicate what type of expense
reimbursement scheme?
a. Mischaracterized expense reimbursements
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, b. Fictitious expense reimbursements
c. Overstated expense reimbursements
d. All of the above
8. Permitting employees to book their own travel using their own credit card is
an effective internal control over expense reimbursement schemes.
a. True
b. False
9. Which of the following methods can be used to perpetrate a fictitious expense
reimbursement scheme?
a. Creating counterfeit receipts
b. Stealing blank receipts
c. Submitting expenses that were paid by a third party
d. All of the above
10. What type of expense reimbursement scheme occurs when an employee submits a
receipt for an entertainment expense that a client paid for?
a. Mischaracterized expense reimbursement
b. Overstated expense reimbursement
c. Fictitious expense reimbursement
d. Duplicate reimbursement scheme
11. Which of the following is not considered a red flag of a fictitious expense
reimbursement scheme?
a. An employee repeatedly uses the company credit card for business travel
expenses.
b. An employee’s reimbursement requests are always for round-dollar amounts.
c. An employee submits reimbursement requests that consistently fall just below the
reimbursement limit.
d. An employee frequently requests reimbursement for high-dollar items that he
claims were paid for in cash.
12. To safeguard against expense reimbursement schemes, organizations should
require that employee expense reports be reviewed and approved by a supervisor
outside the requestor’s department.
a. True
b. False
13. According to the 2010 2012 Report to the Nations on Occupational Fraud and
Abuse, expense reimbursement schemes are the least common type of fraudulent
disbursement schemes.
a. True
b. False
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