CFE – Financial Transactions and Fraud Schemes — Question 65

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. Voided transactions are approved by a supervisor.
• C. Personal checks from cashiers are found in the register.
• D. There are multiple refunds or voids for amounts just under the review limit.

Correct answer: C

Explanation

The correct answer is C, as finding personal checks from cashiers in the register is a clear indication of possible fraud. The other options (A, B, D) all point to suspicious activities that could indicate improper handling of transactions.