Question

Under the KPMG categories of fraud, what would probably not be an employee internal fraud?

-Lapping.
-Petty cash fraud.
-Kickbacks.
-Check forgery.
-All of the above are considered employee internal fraud.

Answer 1

All the listed options - lapping, petty cash fraud, kickbacks, and check forgery - are considered employee internal fraud under the KPMG categories. These actions are unauthorized and result in financial benefits for the employees at the organization's expense.

Step-by-step explanation:

Under the KPMG categories of fraud, all of the options listed - lapping, petty cash fraud, kickbacks, and check forgery - are considered as forms of employee internal fraud. Internal fraud refers to the misuse or misappropriation of an organization's resources or assets by its employees. Examples are:

• Lapping: This involves manipulating accounts receivable to hide the theft of incoming payments.
• Petty cash fraud: Illegitimately using or stealing from the petty cash fund.
• Kickbacks: Receiving personal benefits in exchange for preferential treatment of vendors or contractors.
• Check forgery: Altering or creating unauthorized checks for personal gain.

All these activities are unauthorized actions by employees that result in financial or other benefits for the perpetrators at the expense of the organization.