Register Schemes
General
Concealment
Learning objective
Prevention/Detection
100
Which of the following is a type of register disbursement scheme? a. Fictitious refunds b. Overstated refunds c. False voids d. All of the above
what is d
100
How are Credit Card Refund Schemes usually detected?
Credit Card numbers used for a purchase are compared to credit card numbers for reimbursement.
100
Why are register disbursement schemes easy to conceal?
The cash register is always in balance.
100
What are the two main categories of register disbursement schemes?
What is False refunds and False Voids
100
To safeguard against false void schemes, companies should require a copy of the customer receipt from the initial purchase as documentation for voided sales TRUE/FALSE
TRUE
200
What is normally needed to perpetrate a false void transaction?
What is customer receipt and management approval.
200
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 schemes. TRUE/FALSE
FALSE
200
For the perpetrator, the most dangerous part of a typical register disbursement scheme is?
Physically removing the cash from the register and carrying it out of the store.
200
How can the processing of low dollar refunds help a fraudster conceal a register disbursement scheme?
Low amounts would not require management approval
200
According to the book what is the best way for an organization to prevent a register disbursement scheme?
What is separation of duties
300
When an employee perpetrates a credit card refund scheme, the perpetual inventory will show more or less than the physical inventory?
What is more
300
According to the 2010 Report on Occupational Fraud and Abuse, median losses due to register disbursement schemes were the lowest of all the fraudulent disbursement schemes? TRUE/FALSE
TRUE
300
Which of the following can be used to conceal a false refund scheme? a. Destroying register tapes b. Issuing refunds below the review limit c. Forcing inventory totals d. All of the above
What is d. all of the above.
300
How are fraudulent void schemes used to generate a cash disbursement from the register?
With the customer receipt in hand fraudster rings in a voided sale. The amount the customer paid for the product the perpetrator pockets. The copy of the customer receipt is attached to the void slip for authenticity.
300
In preventing cash disbursement schemes management should? a. Monitor cash and credit sales b. Periodically conduct a physical inventory count c. install cameras d. none of the above
What is c
400
Lucas Smith is a manager at Country Ales, customers have been complaining about not receiving a receipt with their purchase. What fraud might Lucas be committing? a. Skimming b. False Refunds c. False Voids d. All the Above
What is d
400
Why is it important for all cash registers to maintain distinct login codes for work at the cash register?
This allows Management to trace the voids/refunds back to the employee?
400
Typically fraudsters do not make any effort to conceal shrinkage that results from their fraud. TRUE/FALSE
TRUE
400
How do register disbursement schemes cause shrinkage?
An excessive amount of reversing entry's to inventory when the inventory does not exist.
400
Running a computer program that compares adjustments to inventory to the void/ refund transactions summarized by employee can detect which of the following. a. register disbursement schemes b. cash larceny schemes c. skimming d. all of the above
What is d
500
Mike is the head cashier for a clothing store, after boozing and gambling away all of his money, Mike needs to pay rent. He decides to start issuing numerous refund credits to his personal credit card. This is an example of a !@$##$#%$ scheme.
Fictitious Refund
500
What is the difference between a fictitious refund scheme and an overstated refund scheme ?
In a fictitious refund scheme the correcting entry is completely fictitious, while a overstated refund scheme the fraudster steals in excess of a legitimate refund.
500
Aside from #$%$%# a register disbursement scheme leaves the victim organizations books in balance.
What is shrinkage
500
How are register disbursement schemes different from skimming and larceny?
A record of the removal of money on the register tape is present.
500
A horizontal analysis of what two income statement accounts would be most likely used to detect register disbursement schemes.
What is sales and sales returns and allowances.
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