26. Per the Fraud Examiners Manual, which of the following is NOT true about pass-through shell company schemes? A. pass-through schemes are usually undertaken by employees in charge of purchasing. B. pass-through schemes are a subcategory of shell company schemes in which actual goods or service are sold to the victim company. C. instead of buying merchandise directly from a vendor, the corrupt employee sets up a shell company and purchases the merchandise through that fictitious entity. D. the perpetrator resells the merchandise to his employer at a deflated price.

26. Per the Fraud Examiners Manual, which of the following is NOT true about pass-through shell company schemes? A. pass-through schemes are usually undertaken by employees in charge of purchasing. B. pass-through schemes are a subcategory of shell company schemes in which actual goods or service are sold to the victim company. C. instead of buying merchandise directly from a vendor, the corrupt employee sets up a shell company and purchases the merchandise through that fictitious entity. D. the perpetrator resells the merchandise to his employer at a deflated price.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 11CYBK

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