A shell company fraud involves
A) stealing cash from an organization before it is recorded.
B) stealing cash from an organization after it has been recorded.
C) manufacturing false purchase orders, receiving reports, and invoices.
D) a clerk paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor.

Question

Quizplus · Accepted Answer

A shell company fraud involves creating a fake company and generating false purchase orders, receiving reports, and invoices in their name to receive payment for nonexistent goods or services. This allows the fraudsters to divert funds from the organization's accounts to their own personal accounts. Options A, B and D are not related to shell company fraud, but rather involve different types of fraud.

A Shell Company Fraud Involves