The internal auditor for the Bremer Group recently ran a computer audit test that showed that Ouetzen Company, one of the company's listed vendors, doesn't have a telephone number or a tax ID number. Of the choices given, what type of fraud does this situation most likely indicate?
A) Larceny scheme
B) Shell company scheme
C) Non-accomplice vendor scheme
D) Personal purchases scheme

Question

Quizplus · Accepted Answer

The absence of a telephone number or tax ID number for a listed vendor indicates that the vendor may be a shell company created to commit fraud. A shell company scheme involves creating a fraudulent entity to issue invoices for goods or services that were never provided, and then receiving payment for those invoices.

The Internal Auditor for the Bremer Group Recently Ran a Computer