Daniel Isley works as an internal auditor for Atlantic Insurance Co. While reviewing the company's travel and entertainment expenses, Isley noticed that one employee had submitted several receipts from Chase's Restaurant for round-dollar amounts just under the company's reimbursement limit. Further, the receipts were consecutively numbered, but were submitted over a six-month period. What type of scheme did Isley most likely uncover?
A) Fictitious expense reimbursement
B) Multiple reimbursement
C) Mischaracterized reimbursement
D) None of the above

Question

Quizplus · Accepted Answer

Isley most likely uncovered a fictitious expense reimbursement scheme, where the employee submitted false or inflated receipts for reimbursement. The round-dollar amounts just under the reimbursement limit and the consecutive numbering of receipts over a six-month period are red flags for potential fraud.

Daniel Isley Works as an Internal Auditor for Atlantic Insurance