Question

Which of the following tests can be used to detect register disbursement schemes?

A. Extract the top 10 employees with the lowest sales activity.
B. Identify and examine unique journal entries in the cash accounts.
C. Identify customer sales posted to one credit card and refunds posted to another credit card.
D. None of the above

Answer 1

C.

Step-by-step explanation:

The best test to detect register disbursement schemes would be to Identify customer sales posted to one credit card and refunds posted to another credit card. This is because a register disbursement scheme is a type of fraud in which the employee replicates an old transaction with a new one while at the same time replacing the transaction type from debit to credit and vice-versa, in order to justify the cash withdrawal.