SOFA-CFE · Question #376
The major difference between fraud and billing schemes is that payroll and expense frauds involve disbursements to external parties rather than to employees.
The correct answer is B. False. B (False) is correct because the statement has the relationship exactly backwards. Payroll and expense frauds involve disbursements to employees - such as ghost employees, inflated wages, or fictitious expense reimbursements - while billing schemes involve disbursements to…
Question
The major difference between fraud and billing schemes is that payroll and expense frauds involve disbursements to external parties rather than to employees.
Options
- ATrue
- BFalse
How the community answered
(27 responses)- A26% (7)
- B74% (20)
Explanation
B (False) is correct because the statement has the relationship exactly backwards. Payroll and expense frauds involve disbursements to employees - such as ghost employees, inflated wages, or fictitious expense reimbursements - while billing schemes involve disbursements to external parties, such as fictitious or colluding vendors.
Why A is wrong: The statement reverses the actual distinction. Accepting it as true would mean misidentifying which fraud category targets which recipient, which is the core definitional difference between these scheme types.
Memory tip: Think "Billing = Business outsiders (vendors)" - both start with B. That leaves payroll and expense schemes pointing inward, toward employees on the payroll. If the statement flips those directions, flag it as False.
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