A shell company fraud involves
A) stealing cash from an organization before it is recorded
B) Stealing cash from an organization after it has been recorded
C) manufacturing false purchase orders,receiving reports,and invoices
D) A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor.

Question

Quizplus · Accepted Answer

A shell company fraud involves creating a fictitious company and then creating false purchase orders, receiving reports, and invoices to make it appear as if legitimate goods or services were purchased. This allows the fraudster to receive payments from the organization without actually providing any goods or services. Stealing cash before or after it is recorded would not necessarily involve the creation of a shell company. The scenario described in D sounds more like a duplicate payment fraud.

A Shell Company Fraud Involves