Julia is performing tests by comparing payroll records to HR files. Which fraud scheme is she most likely looking for?

• A. A fraudulent commissions scheme
• B. A check tampering scheme
• C. A ghost employee scheme
• D. A falsified hours and wages scheme

Answer: (C)

Cross-checking payroll records against HR files targets ghost employee fraud, where a fictitious worker is added to the payroll to siphon wages. When you compare who is listed in payroll with who is actually in HR, any person on the payroll who has no corresponding HR record (or mismatched identifiers) signals a ghost employee. This direct mismatch is the telltale sign of someone being paid for work that isn’t happening.

Fraud involving commissions relates to inflating sales figures, which wouldn’t necessarily show up just by matching payroll to HR. Check tampering involves altering issued checks after they’re created, and falsified hours or wages involve misreporting hours for real employees—both are uncovered through other controls, like bank review for checks or timekeeping systems—whereas the payroll-versus-HR comparison is exactly how ghost employees are exposed.