Because They Leave a Solid Audit Trail, Expense Reimbursement Schemes

question 24

True/False

Because they leave a solid audit trail, expense reimbursement schemes are generally easier to detect than other types of fraud schemes.

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Definitions:

Fair Value

The estimated market price of an asset or liability, based on current market conditions and arm’s length transactions, used for financial reporting purposes.

Equipment

Tangible property used in operations, such as machinery and computers.

Consolidated Balance Sheet

A financial statement showing the financial position of a parent company and its subsidiaries as if they were a single entity.

Fair Value

The gain expected to be received from an asset disposal or the amount necessary to cover a liability in a mutual transaction among market counterparts at the estimated date.