ch 8 notes - PRINCIPLES OF FRAUD EXAMINATION Lecture...

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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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