Identify the correct answer with respect to fraud.
Explanation of Solution
Identify the correct answer with respect to fraud.
Justification for correct answer:
a.
Lapping is a fraudulent practice that is done by altering the
Justification for incorrect answer:
b.
Kiting or check kiting is a type of check fraud. This fraud is committed by taking advantage of a float to make use of a non-existing fund in another bank account. Therefore, checks are misused as a form of unauthorized credit rather than a negotiable instrument. Therefore, it is an incorrect answer.
c.
A Ponzi scheme is a fraudulent investing scheme where the money collected from new investors are used to pay off the earlier exiting investors. Therefore, it is an incorrect answer.
d.
Salami attack refers to the theft of small negligible amounts of money over a period of time. Therefore, it is an incorrect answer.
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Chapter 5 Solutions
Accounting Information Systems (13th Edition)
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