Question

Under the KPMG categories of fraud, what would probably not be a management internal fraud?

-False insurance claims.
-Ghost vendors.
-Check forgery.
-False financial statements.
-All of the above are considered employer internal fraud.

Answer 1

False insurance claims are typically not classified as management internal fraud by KPMG's categories, as they involve external parties making fraudulent claims, unlike ghost vendors, check forgery, and false financial statements, which are internal issues.

Step-by-step explanation:

Under the KPMG categories of fraud, false insurance claims would probably not be considered a management internal fraud. Management internal fraud, also known as occupational fraud, is primarily concerned with fraudulent activities conducted by employees, managers, or executives within an organization. This typically includes schemes like ghost vendors, check forgery, and creating false financial statements. False insurance claims, however, are generally external to the company and involve an external party making fraudulent claims against the company's insurance policies.