Qualification in Internal Audit Leadership (QIAL) — Question 2

Which of the following fraud schemes is often an off-book fraud?

Answer options

• A. Payroll fraud.
• B. Disbursement fraud.
• C. Corruption.
• D. Information misrepresentation.

Correct answer: B

Explanation

Disbursement fraud involves making unauthorized payments or manipulating financial records, often occurring off-book to evade detection. Payroll fraud typically involves falsifying employee hours or identities but is usually tracked in payroll systems. Corruption relates to bribery or unethical practices, while information misrepresentation involves altering data, which may not necessarily be off-book.