Which of eth following is NOT the type of expense reimbursement scheme?

Question

Options

• AMischaracterized expenses
• BOverstated expenses
• CFictitious expenses
• DReimbursement expenses

• A
  3% (1)
• B
  8% (3)
• C
  17% (6)
• D
  72% (26)

Explanation

Option D ("Reimbursement expenses") is not a type of expense reimbursement scheme - it is the name of the broader fraud category itself. Listing it as a subtype would be circular, like saying a "fruit scheme" is a type of fruit.

Options A, B, and C are all legitimate subtypes:

• Mischaracterized expenses (A) occur when an employee submits a real expense but disguises its personal nature as business-related (e.g., claiming a family dinner as a client meal).
• Overstated expenses (B) involve inflating the amount of a genuine expense (e.g., submitting a $200 receipt for a $20 meal).
• Fictitious expenses (C) are entirely fabricated - the expense never occurred, and the receipt or documentation is forged.

Memory tip: Think of the three fraud subtypes as the "MOF" trio - Mischaracterized, Overstated, Fictitious. If a choice sounds like the category label rather than a method of manipulation, it's the odd one out.

No community discussion yet for this question.