Question 1

In one of the cases in the textbook, Joe Anderson, a part-time shoe salesperson at a department store, perpetrated a fictitious returns scheme using third-party credit cards. What happened as the result of the investigation?

Accepted Answer

A)  Anderson was terminated and promised to pay back all the fraudulent proceeds. 
B)  The department store recovered most of its losses through its bonding company. 
C)  Local and federal charges for embezzlement and financial transaction card fraud were brought against Anderson and 27 co-conspirators. 
D)  All of the above

Question 2

Greg Manor is the sales manager at County Arts & Crafts Supply. Recently he has received several complaints from customers who claim they were not given a receipt for their purchases. What type of scheme might this situation indicate?

Accepted Answer

A)  Skimming 
B)  False refunds 
C)  False voids 
D)  All of the above

Question 3

To safeguard against false voids schemes, companies should require a copy of the customer's receipt from the initial purchase as documentation for voided sales.

Accepted Answer

A) True 
 B)False

Question 4

According to the textbook, the best way for an organization to prevent fraudulent register disbursements is to:

Accepted Answer

A)  Have each employee compare the cash in his or her register drawer to the register tape at the end of each shift. 
B)  Maintain appropriate separation of duties. 
C)  Have a policy requiring photocopied receipts for sales refunds. 
D)  All of the above

Question 5

In one of the case studies in the textbook, Bob Walker was the head cashier for a discount drug store who perpetrated his fraud scheme by issuing fictitious refunds. What was Walker's motive for committing the crime?

Accepted Answer

A)  His wife became ill and needed money to pay for prescription drugs. 
B)  He had been demoted from a management position and wanted to get back at the store. 
C)  He lost a lot of money gambling and was too embarrassed to tell his wife. 
D)  He had accumulated nearly $60,000 in credit card debt and was about to lose his house.

Exam 8: Register Disbursement Schemes

In one of the cases in the textbook, Joe Anderson, a part-time shoe salesperson at a department store, perpetrated a fictitious returns scheme using third-party credit cards. What happened as the result of the investigation?

Greg Manor is the sales manager at County Arts & Crafts Supply. Recently he has received several complaints from customers who claim they were not given a receipt for their purchases. What type of scheme might this situation indicate?

To safeguard against false voids schemes, companies should require a copy of the customer's receipt from the initial purchase as documentation for voided sales.

According to the textbook, the best way for an organization to prevent fraudulent register disbursements is to:

In one of the case studies in the textbook, Bob Walker was the head cashier for a discount drug store who perpetrated his fraud scheme by issuing fictitious refunds. What was Walker's motive for committing the crime?