SOFA-CFE · Question #378
Which of the following is NOT the category of payroll fraud?
The correct answer is C. Invoicing noncompliance vendors' schemes. Option C is correct because "invoicing noncompliance vendors' schemes" belongs to the category of vendor/accounts payable fraud, not payroll fraud - it involves manipulating the purchasing and invoice process with outside vendors, which is entirely separate from the payroll…
Question
Which of the following is NOT the category of payroll fraud?
Options
- AGhost employee schemes
- BFalsified hours
- CInvoicing noncompliance vendors' schemes
- DCommission schemes
How the community answered
(21 responses)- A10% (2)
- B5% (1)
- C81% (17)
- D5% (1)
Explanation
Option C is correct because "invoicing noncompliance vendors' schemes" belongs to the category of vendor/accounts payable fraud, not payroll fraud - it involves manipulating the purchasing and invoice process with outside vendors, which is entirely separate from the payroll system.
The other three options are genuine payroll fraud categories: Ghost employee schemes (A) involve adding fictitious workers to the payroll to divert paychecks; falsified hours (B) occur when employees inflate their time records to receive unearned wages; and commission schemes (D) involve sales staff manipulating commission records or sales figures to pocket inflated payouts.
Memory tip: Keep the distinction simple - payroll fraud always involves manipulating compensation paid to employees (real or fake). Anything involving outside vendors or suppliers belongs to procurement/AP fraud, not payroll fraud.
Community Discussion
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