To Prevent Altered Payee Schemes, the Person Who Prepares the Check

question 12

True/False

To prevent altered payee schemes, the person who prepares the check should also review the check after it has been signed.

---

Definitions:

Deferred Costs

Expenses that are incurred but not immediately charged against income, typically spread over several accounting periods.

Rent-seeking Behavior

The practice of individuals or entities using resources to gain economic advantage from the government rather than contributing to wealth creation.

Transfer of Wealth

The movement of financial assets or resources from one individual, group, or entity to another, often through inheritance, gifts, or transactions.

Adverse Selection

A situation where one party in a transaction has more information than the other, often leading to an unfavorable outcome for the less informed party.