According to fraud tree, cash has three following schemes:
Click on the arrows to vote for the correct answer
A. B. C. D.A
The correct answer to the question is A. Skimming, cash larceny, and fraudulent disbursements.
The fraud tree is a method used to categorize fraud schemes into different types based on the nature of the fraud. In the case of cash, the fraud tree identifies three primary fraud schemes: skimming, cash larceny, and fraudulent disbursements.
Skimming: This scheme involves stealing cash before it is recorded in the accounting system. For example, an employee may collect cash from customers and not ring up the sale, thereby pocketing the cash. Skimming is difficult to detect because there is no record of the transaction in the accounting system.
Cash larceny: This scheme involves stealing cash that has already been recorded in the accounting system. For example, an employee may steal cash from a cash register or safe. Cash larceny is easier to detect than skimming because there is a record of the transaction in the accounting system.
Fraudulent disbursements: This scheme involves making payments for fictitious or unauthorized expenses. For example, an employee may create a fake vendor and submit invoices for payment, or they may alter legitimate invoices to divert payment to themselves. Fraudulent disbursements can be difficult to detect because the payments may appear to be legitimate expenses.
Therefore, option A. Skimming, cash larceny, and fraudulent disbursements is the correct answer as it accurately identifies the three primary cash fraud schemes according to the fraud tree.