Vendor fraud Quiz

1. What is a billing scheme in vendor fraud?

A. An employee generates false payments using the company’s vendor payment system. B. A vendor charges more than the agreed price. C. Competing vendors set a minimum price.

2. Which of the following is an example of check tampering?

A. Creating a fictitious vendor. B. Forging or altering checks to deposit them in a personal account. C. Accepting payments from a vendor for an advantage.

3. What is price fixing in the context of vendor fraud?

A. An employee manipulates vendor accounts. B. Vendors collude to set a minimum price range. C. A vendor charges for more goods than shipped.

4. Which method helps prevent vendor fraud?

A. Conducting thorough background checks on new employees. B. Allowing one person to handle all vendor payments. C. Ignoring anomalies in billing patterns.

5. What should be done to identify fictitious vendors?

A. Look for vendors with valid taxpayer identification numbers. B. Identify vendors with consecutive invoice numbers. C. Ensure vendors use Microsoft Excel or Word invoice templates.

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