Question

Which of the following is an integral step in a pay-and-return scheme? A. Establish a shell company. B. Misappropriate the incoming check related to returned goods and deposit the check in a bank account other than the company's. C. Purchase legitimate goods that are paid by the organization and return them. D. Adjust the legitimate good inventory to conceal the shortage related to the returned goods.

Answer 1

Answer:

Letter b is correct. Misappropriate the incoming check related to returned goods and deposit the check in a bank account other than the company's.

Explanation:

A pay-and-return scheme is a scheme where an employee intentionally defrays a payment amount from a vendor, increasing that expense and reimbursing the excess amount of that payment. It can also be performed on a dual payment scheme to a vendor, and after the employee reports the error to the vendor and gets a check back, he can refund the amount.