Basics
What is it called when you act like there is a refund and take money when there was no refund and adjust the books to match.
false refund
What is debited and credited for a false refund?
Debit: inventory
Credit: Cash
Meredith had a customer return an item and she recorded the return as more than it was and pocketed the extra money.
Overstated refund
What kind of fraud happens the most frequently?
billing fraud
Does it help prevent fraud to maintain separation of duties?
yes
What is it called when there is a legitimate refund but the fraudster records more of a refund than there really was.
overstated refund
What do you debit and credit for an overstated return?
You don't. It's a form of skimming you take the extra money.
Dr.Valencia did a journal entry where his credit card was returned money for a product he never returned.
credit card refund fraud
What type of fraud has the highest medium loss?
check tampering
Manager approval not needed for voids or refunds.
What is it called when a fraudster credits money to his credit card instead of having to take cash from the register and then adjusts the books to reflect refund.
false credit card refund
Debit: inventory
Credit: Accounts receivable for fraudster
Liam took cash from the register and then adjusted the books to reflect a return for the amount he took.
false refund
What type of fraud disbursement happens the least frequency?
register disbursement
Everyone has access to a control key or management code.
No