1. Question : (TCO F) Which of the following procedures can be used to prevent mischaracterized expense reimbursement schemes? Student Answer: A policy should be established and communicated to employees regarding what types of expenses will and will not be reimbursed. Employees should be required to sign their expense reports before being reimbursed. The internal audit department should review all expense reports under a certain dollar amount. None of the above Instructor Explanation: Wells 7 Comments: 2. Question : (TCO F) Which of the following procedures can be used to detect mischaracterized expense reimbursement schemes? Student Answer: Compare the dates of claimed reimbursable business expenses to the employees' work schedules. On company credit card statements, extract charges with SIC codes that are normally associated with personal purchases. Compare current expense reimbursement levels to prior years and budgeted amounts. All of the above Instructor Explanation: Wells 7 Comments: 3. Question : (TCO F) Remy Lewis has just started working as a marketing research analyst for Commercial Casting Company in New York City. He is relocating his family to New York from North Carolina, but they haven't moved yet. Twice a month, the company pays for Lewis to travel to North Carolina to visit his family and help with the move. During the month of September, Lewis only visited his family once; however, he submitted expense reports for mileage for two separate trips to North Carolina and back. What type of scheme is this? Student Answer: Mischaracterized expense reimbursement Billing Fictitious expense reimbursement None of the above Instructor Explanation: Wells 7 Comments: 4. Question : (TCO F) Which of the following methods can be used to perpetrate a fictitious expense reimbursement scheme? Student Answer: Creating counterfeit receipts Stealing blank receipts Submitting expenses that were paid by a third party All of the above