Warning signs of a shell company scheme include which of the following?
A) Invoices lacking details of the items purchased
B) A vendor that is not listed in the phone book
C) An unexpected and significant increase in "consulting expenses"
D) All of the above

Question

Quizplus · Accepted Answer

All of the options listed are warning signs of a shell company scheme. Invoices lacking details of the items purchased can be a sign of fraud, as the lack of information on what was purchased can make it difficult to determine if the expense was legitimate. A vendor that is not listed in the phone book can indicate that the vendor does not actually exist or is not a legitimate business. An unexpected and significant increase in "consulting expenses" can be a red flag for a shell company scheme, as these expenses are often used to justify payments to a fraudulent vendor.

Warning Signs of a Shell Company Scheme Include Which of the Following