CFE – Financial Transactions and Fraud Schemes — Question 20

Which of the following is NOT a red flag of fraudulent register disbursements?

Answer options

• A. There are gaps in the sequence of transactions on the register log.
• B. Register employees have the authority to void their own transactions.
• C. Personal checks from cashiers are found in the register.
• D. There are multiple supervisor-approved refunds or voids just over the review limit.

Correct answer: C

Explanation

Option C is correct because personal checks from cashiers in the register may not necessarily indicate fraud, while the other options highlight significant issues that could suggest fraudulent activity. Gaps in transaction sequences, self-voiding authority, and multiple refunds or voids over review limits are all serious red flags that warrant further investigation.