Exam 4: Billing Schemes

Categories of billing schemes include which of the following?

A pass-through scheme is usually undertaken by someone who works in which department?

Nicolas Hill, CFE, has been hired to look into suspicious activity at Mason & Jefferson, LLC. The company's controller has reason to believe that the company has fallen victim to a shell company scheme. As part of his investigation, Nicolas should do which of the following?

In order to start up a shell company, the fraudster will most likely need which of the following?

Producing an invoice that looks professional is the most difficult part of a shell company scheme.

In one of the case studies in the textbook, a Southeastern medical college was plagued with fraudulent activity. What started as an investigation into some suspicious expense reimbursement activity eventually led to the discovery of a fictitious company that was set up to fraudulently bill the college for supplies that never existed. Which of the following red flags were found during the investigation?

The internal auditor for the Bremer Group recently ran a computer audit test that showed that Ouetzen Company, one of the company's listed vendors, doesn't have a telephone number or a tax ID number. Of the choices given, what type of fraud does this situation most likely indicate?

Abby Watkins works in the accounts payable department for SVX Company. Recently, she set up a payment to Pacific Industries for invoice number 7001a, which is unlike any invoice number she has seen from Pacific in the past. The voucher contains a purchase order that backs up the invoice, but it looks like a photocopy. Additionally, the accounting system shows that invoice number 7001 from Pacific was for a slightly different amount and has already been paid. Pacific Industries is an established vendor with SVX, but the payment address has recently been changed to a P.O. Box in the vendor file. What type of fraud does this situation most likely indicate?

Fictitious entities created for the sole purpose of committing fraud are called:

Which of the following controls can be used to prevent or detect personal purchases on company credit cards?