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Exam 8: Register Disbursement Schemes

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Question 1

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According to the 2010 Report to the Nations on Occupational Fraud and Abuse, median losses due to register disbursement schemes were the highest of all the fraudulent disbursement schemes.

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Question 2

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Which of the following tests can be used to detect register disbursement schemes?

A) Extract the top 10 employees with the lowest sales activity.
B) Identify and examine unique journal entries in the cash accounts.
C) Identify customer sales posted to one credit card and refunds posted to another credit card.
D) None of the above

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Question 3

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In one of the case studies in the textbook, Bob Walker was the head cashier for a discount drug store who perpetrated his fraud scheme by issuing fictitious refunds. How was the fraud discovered?

Register disbursement schemes are different from skimming and larceny at the register in that they:

Which of the following procedures can be used to prevent and detect a register disbursement scheme?

Which of the following is a type of register disbursement scheme?

Sara Michaels works as a sales associate in the shoe department at a large chain department store. To supplement her income, Sara processed multiple fictitious refunds on sales made to customers. This is an example of what type of asset misappropriation?

An excessive number of reversing sales transactions at the register is an indicator of which of the following schemes?

Which of the following can be used to conceal a false refund scheme?

Leslie White, CFE, was called in to investigate suspicious activity at Anderson's Department Store. During her investigation, she ran a test to search for customer sales and refunds that occurred on the same day. She also summarized refunds by employee and extracted the names of all employees who can post both refunds and inventory adjustments. What type of scheme is Leslie most likely looking for?

When an employee perpetrates a credit card refund scheme, the perpetual inventory will show a greater amount than the physical inventory.

Register disbursement schemes are difficult to conceal because they cause the cash drawer to be out of balance with the cash register tape.

Running a computer program that compares adjustments to inventory to the void/refund transactions summarized by employee can detect which of the following schemes?

In one of the case studies in the textbook, Bob Walker was the head cashier for a discount drug store who perpetrated his fraud scheme by issuing fictitious refunds. What happened to Walker?

For the perpetrator, the most dangerous part of a typical register disbursement scheme is often:

According to the 2010 Report to the Nations on Occupational Fraud and Abuse, register disbursement schemes were the most frequently reported type of fraudulent disbursement scheme.

Meredith Chapman works as a retail clerk at a children's clothing store. When a customer returns an item for a cash refund, Meredith enters an amount greater than the actual refund into the register, pays the customer the amount owed for the returned merchandise, and keeps the excess cash for herself. What type of scheme is Meredith committing?

In one of the cases in the textbook, Joe Anderson, a part-time shoe salesperson at a department store, perpetrated a fictitious returns scheme using third-party credit cards. Why was a fraud examination initiated?

Nicolas Barrens conspired with his manager to steal nearly $6,000 over 2 months from the grocery store where they worked. Each time Nicolas rang up a customer at the register, he asked the customer if he'd like a receipt. When a customer said no, Nicolas pretended to discard the receipt in the trash, but actually slipped the receipt into his pocket. At the end of his shift, he filled out a void slip for each of these sales and submitted them to his supervisor for approval. With the original receipt and the approved void slip, Nicolas removed cash from the register in the amount of the voided sales and split the proceeds with his supervisor. Nicolas committed what type of fraud scheme?

Billy Mitchell is the head cashier for a clothing store that specializes in men's silk suits. After losing big at the local dog track, Billy was in the hole financially. To cover his gambling debts, he started issuing numerous refund credits to his own credit card for amounts just below the store's review limit. This is an example of a __________________ scheme.