Question

Kevin Chitry, a sales executive for CIT Manufacturing, frequently took clients out for dinner and shows when they came to town to tour the plant. He usually paid for these expenses himself and submitted the receipts to his supervisor for approval and reimbursement. Occasionally, however, he also took his family out to restaurants and rock concerts and included these expenses in his reimbursement requests by indicating that he was entertaining a client. This type of fraud is known as a(n):

Answer 1

Answer: Mischaracterized expense

Explanation:

Here, in this particular case we can state that this kind of fraud is referred to as a Mischaracterized expense. Mischaracterized expense are referred to as the situation under which an employee tends to attempts or try to receive the remuneration or rectification for the personal expense by further categorizing it as an organization expense.