Kevin Chitry, a sales executive for CIT Manufacturing, frequently took clients out for dinner and shows when they came to town to tour the plant. He usually paid for these expenses himself and submitted the receipts to his supervisor for approval and reimbursement. Occasionally, however, he also took his family out to restaurants and rock concerts and included these expenses in his reimbursement requests by indicating that he was entertaining a client. This type of fraud is known as a(n):
A) Overstated expense reimbursement
B) Mischaracterized expense reimbursement
C) Fictitious expense reimbursement
D) Altered receipt reimbursement

Question

Quizplus · Accepted Answer

Mischaracterized expense reimbursement involves submitting personal expenses as business expenses by misrepresenting the purpose of the expense. In this case, Kevin Chitry was misrepresenting his personal expenses as client entertainment expenses.

Kevin Chitry, a Sales Executive for CIT Manufacturing, Frequently Took