CFE – Financial Transactions and Fraud Schemes — Question 16

Which of the following would NOT be helpful in the prevention of expense reimbursement schemes?

Answer options

• A. Requiring all receipts to be submitted electronically
• B. Comparing current expenses to budgeted expense amounts
• C. Requiring employees to explain the specific business purpose of each expense
• D. Comparing current expenses to historical expenditure amounts

Correct answer: B

Explanation

The correct answer is B because comparing expenses to budgeted amounts does not directly address the authenticity of individual expenses, which is crucial for preventing fraud. The other options help ensure that expenses are legitimate by requiring documentation or justification for each expense submitted.