Phil O'Hara is an internal auditor for the Shield Corporation. Recently he ran a report that listed payments to employees for business expenses that occurred while the employee was on vacation. What type of fraud scheme is Phil most likely to find?
A) Cash larceny
B) Forged expenses
C) Overstated expense reimbursement
D) Mischaracterized expense reimbursement

Question

Quizplus · Accepted Answer

Mischaracterized expense reimbursement occurs when an employee submits personal expenses as business expenses. In this case, the employees are submitting vacation expenses as business expenses.

Phil O'Hara Is an Internal Auditor for the Shield Corporation