Term
| Overstated expense reimbursements |
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Definition
| Schemes in which business-related expenses are inflated on an expense report so that the perpetrator is reimbursed for an amount greater than the actual expense |
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Term
| Mis-characterized expense scheme |
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Definition
| An attempt to obtain reimbursement for personal expenses by claiming they are business related |
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Term
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Definition
| A method of overstating business expenses in which a fraudster buys two or more business expense items at different prices. The perpetrator returns the more expensive item for a refund but he claims reimbursement for this item. As a result, he is reimbursed for more than his actual expenses |
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Term
| Fictitious expense reimbursement schemes |
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Definition
| A scheme in which an employee seeks reimbursement for wholly nonexistent items or expenses |
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Term
| Multiple reimbursement schemes |
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Definition
| An attempt to obtain more than one reimbursement for the same business-related expense |
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Term
| c) When confronted about the fraud, Worth denied that he had stolen company funds |
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Definition
Regarding the case study, "Frequent flier's fraud crashes", which of the following is incorrect concerning Andrew Worth's theft of company funds?
a) His theft was discovered by one of the internal auditors who noticed discrepancies in his credit card account reports
b) Worth was using a cheap airline ticket for his travel and sending in the more expensive ticket with the expense report for reimbursement
c) When confronted about the fraud, Worth denied that he had stolen company funds
d) Worth was terminated, but not prosecuted |
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Term
| Expense reimbursement schemes rank second in terms of frequency (under billing schemes) and last in terms of median loss |
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Definition
| How do expense reimbursements schemes rank among fraudulent disbursements in terms of frequency and median loss? |
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Term
1) Mischaracterized
2) Overstated
3) Fictitious
4) Multiple |
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Definition
| What are the four types of expense reimbursement schemes? |
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Term
| e) If not for internal controls, Chesterly's fraud could have gone on for much longer (false, the company had no internal controls) |
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Definition
| Regarding the case study, "The extravagant salesman", which of the following statements is incorrect concerning Cy Chesterly's expense reimbursement fraud? a) Chesterly never confessed to fraud; he was fired and the company never prosecuted b) Chesterly's fraud was discovered when the company's new president asked Greenfield, CFE, to review travel and entertainment expenses c) Chesterly was considered to be a top employee and was promoted from sales manager to vice president d) Chesterly didn't try to conceal his fraud; entertainment expenses were rising faster than sales e) If not for internal controls, Chesterly's fraud could have gone on for much longer |
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