_____________ is a more difficult problem when the ghost is a former employee who was simply not removed from the payroll.

Question

Options

• ADistribution
• BDisbursement
• CCash out
• DPaycheck

• A
  75% (40)
• B
  4% (2)
• C
  13% (7)
• D
  8% (4)

Explanation

Distribution (A) is correct because the problem of distributing fraudulent paychecks is significantly harder to detect when the ghost is a former employee. A former employee has a legitimate name, valid Social Security number, real address or bank account on file, and an established payroll history - all of which make the fraudulent payments blend in naturally with legitimate ones.

B (Disbursement) is wrong because disbursement refers broadly to any outgoing payment of funds; distribution is the more precise term for physically routing paychecks or direct deposits to recipients, which is the specific control point that breaks down in this scenario.

C (Cash out) is wrong because it is not a standard payroll audit or fraud examination term - it describes converting an asset to cash generally, not a category of payroll control failure.

D (Paycheck) is wrong because a paycheck is simply the instrument of payment, not the name of the control problem or fraud risk category being described.

Memory tip: Think of the word distribute as "getting the check to the right person." A former employee already has a legitimate route - real bank account, real address - so the fraudulent check distributes just like a real one, making it the hardest ghost to catch.

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