CFE – Financial Transactions and Fraud Schemes — Question 67

Linda, an assistant bank manager, purchases a new car that she cannot afford on her salary. To make her car payments, she takes money from a customer’s account and then adjusts the bank’s general ledger to cover the missing amount. Which of the following BEST describes Linda’s scheme?

Answer options

• A. False accounting entry
• B. Unauthorized withdrawal
• C. Moving money from dormant accounts
• D. Unauthorized disbursement of funds

Correct answer: A

Explanation

The correct answer is A, as Linda's actions involve creating a false record in the accounting system to hide the theft of funds. Option B, unauthorized withdrawal, is not the best description since it does not encompass the manipulation of the ledger. Option C is incorrect as it refers to a different scenario involving dormant accounts. Option D describes the act of disbursing funds without authorization, but it does not specifically address the falsification of accounting records.