During a review of A+ Service's payroll records, Judy Penney, an internal auditor, noticed that Bradley Banks has no deductions taken from his paychecks for withholding taxes or insurance. She then searched for Banks in the personnel records, but could not locate him. Based on this information, what type of scheme did Penney most likely uncover?

Question

Quizplus · Accepted Answer

Judy Penney most likely uncovered a ghost employee scheme where an individual who does not actually work for the company is added to the payroll system and paid. The lack of deductions for withholding taxes or insurance and the inability to locate the employee in personnel records are both red flags for this type of scheme.

During a Review of A+ Service's Payroll Records, Judy Penney