Danielle Boyle, CFE, Was Hired to Investigate Some Suspicious Activity

question 16

Multiple Choice

Danielle Boyle, CFE, was hired to investigate some suspicious activity in the accounts receivable department at Red Technologies. While examining the company's accounting records, she noticed several payments posted to customers' accounts that were later reversed with journal entries to "courtesy discounts." What type of scheme might this situation indicate?

• A) Receivables skimming
• B) Deposit lapping
• C) Cash larceny of receivables
• D) Shell company

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Definitions:

Company's Reputation

reflects the public perception and esteem held for a company, influenced by its actions, quality of goods or services, and engagement with stakeholders.

Dormant Stage

A period of inactivity or low growth, often referring to businesses, volcanoes, or biological life cycles.

Crisis Communications

The practice of managing and delivering information during a crisis to mitigate damage to an organization’s reputation and maintain public trust.

Strong Moral Foundation

A core set of ethical principles and values that guide an individual's or organization's behavior and decision-making.