Jill creates a fraudulent receipt to obtain reimbursement for a fictitious expense. Which type of scheme is this?

• A. Fictitious expense scheme
• B. Mischaracterized expense scheme
• C. Multiple reimbursement scheme
• D. Collusion with a supervisor

Answer: (A)

Fictitious expense schemes involve submitting receipts for expenses that never occurred. Jill’s act of creating a fraudulent receipt for a non-existent expense fits this exactly, as the reimbursement is sought for something that didn’t happen. This differs from mischaracterized expenses, where a real expense is misrepresented in amount or category to obtain a higher reimbursement, or from a multiple reimbursement scheme, where the same expense is submitted more than once. Collusion with a supervisor would involve two people working together to approve or facilitate the fraud, but the key idea here is that the expense itself is fake.