PRINCIPLES OF FRAUD EXAMINATION Lecture Outline Chapter 8 – Register Disbursement Schemes Register Disbursement Schemes – are occupational frauds in which money is removed from the cash register and recorded on the register tape. A false transaction is then recorded as though it was a legitimate disbursement to justify the removal of the money. I. False refunds- a disbursement of money from the register to the customer for, presumably, returning an item of merchandise purchased from that store A. Fictitious refunds – 1. Cash is removed from the register in the amount of the false return 2. No merchandise is actually returned, therefore, inventory is overstated B. Overstated refunds – overstating the amount of a legitimate refund and stealing the excess money C. Credit card refunds – processing false refunds on credit cards instead of physically taking cash from the register. This may be achieved in a number of ways: 1.
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