Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s records

Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s records

4 Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services
A . 1 and 3.
B . 1 and 4
C . 2 and 3.
D . 2 and 4

View Answer

Answer: D

Explanation:

Diversion typically involves redirecting resources or assets for personal use, not just having an undisclosed interest.

Tax evasion involves deliberate falsification of financial information to avoid tax liabilities.

Skimming is taking cash before it is recorded in the accounting system, usually difficult to detect.

Disbursement fraud involves creating fictitious invoices or vendors to divert funds.

Reference: These definitions are aligned with common fraud schemes outlined in the ACFE (Association of Certified Fraud Examiners) Fraud Tree and various IIA practice guides.