The perpetrators of which frauds produce false documents that cause the victim company to unwittingly make a fraudulent disbursement?

Question

Options

• AFrequency of fraudulent disbursements
• BPayroll and expense reimbursement schemes
• CInventory & Purchase reimbursement schemes
• DSales & Equipment reimbursement schemes

• A
  6% (1)
• B
  82% (14)
• D
  12% (2)

Explanation

Payroll and expense reimbursement schemes (B) are correct because perpetrators in these schemes create false documents - such as fictitious timesheets, ghost employee records, or fabricated expense receipts - that appear legitimate to the company's accounts payable or HR processes, causing the organization to unknowingly issue real payments. The defining characteristic is that the victim company is deceived into making the disbursement; it believes the payment is valid.

Option A is wrong because "frequency of fraudulent disbursements" is a measurement metric, not a fraud scheme category - it describes how often fraud occurs, not who commits it or how.

Option C is wrong because "Inventory & Purchase reimbursement schemes" is not a standard fraud classification, and while purchasing fraud exists, it doesn't map to the specific mechanism described (false documents → unwitting disbursement) the way payroll/expense schemes do.

Option D is wrong for the same reason - "Sales & Equipment reimbursement schemes" is not a recognized scheme type, and sales fraud typically involves revenue manipulation rather than fraudulent disbursements triggered by false documents.

Memory tip: Think "P.E. = Paper Evidence" - Payroll and Expense schemes rely entirely on paper (false documents) to trick the company into paying. No fake document, no fraudulent disbursement.

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