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Question 1

Ghost employee

Answer 1

An individual on the payroll of a company who does not actually work for the company. This individual can be real or fictitious.

Question 2

Salaried employees

Answer 2

Employees who are paid a set amount of money per period (weekly, biweekly, monthly, etc.). Unlike hourly employees, salaried employees are paid a set amount regardless of the actual number of hours they work.

Question 3

Rubber stamp supervisor

Answer 3

A supervisor who neglects to review documents, such as time cards, before signing or approving them for payment.

Question 4

Commission

Answer 4

A form of compensation calculated as a percentage of the amount of sales an employee generates. A commissioned employee’s wages are based on two factors: the amount of sales generated and the percentage of those sales he is paid.

Question 5

Mischaracterized expense scheme

Answer 5

An attempt to obtain reimbursement for personal expenses by claiming that they are business-related expenses

Question 6

Overstated expense reimbursements

Answer 6

Schemes in which business-related expenses are inflated on an expense report so that the perpetrator is reimbursed for an amount greater than the actual expense.

Question 7

Overpurchasing

Answer 7

A method of overstating business expenses whereby a fraudster buys two or more business expense items (such as airline tickets) at different prices. The perpetrator returns the more expensive item for a refund, but claims reimbursement for that same item. As a result, he is reimbursed for more than his actual expenses.

Question 8

Fictitious expense reimbursement schemes

Answer 8

A scheme in which an employee seeks reimbursement for wholly nonexistent items or expenses.

Question 9

Multiple reimbursement schemes

Answer 9

A scheme in which an employee seeks to obtain reimbursement more than once for a single business-related expense.