CFE – Financial Transactions and Fraud Schemes — Question 44

Blue borrowed her employer’s snowplow for her own snow removal business, which she operates on the side. Blue only used the snowplow on the weekends or after hours, when her employer was not open for business. Blue falsified the mileage and usage logs for the snowplow so that no one would know she had been using it. The snowplow was returned unharmed. Which of the following statements is MOST ACCURATE?

Answer options

• A. Blue committed larceny of a noncash asset.
• B. Blue committed misuse of a noncash asset.
• C. Blue committed a fictitious sales scheme.
• D. Blue did not commit occupational fraud.

Correct answer: B

Explanation

The correct answer is B because Blue's actions reflect the improper use of her employer's asset for personal gain without permission. Option A is incorrect as larceny implies theft, which is not applicable since she borrowed the snowplow. Option C is not relevant as there was no sales scheme involved, and option D is incorrect because her actions do constitute occupational fraud.