Which of the following are examples of expense reimbursement schemes?

• A. Listing personal travel as business travel
• B. All of the above
• C. Requesting reimbursement for an expense that was never incurred
• D. Listing dinner with a friend as a business development expense

Answer: (B)

The main idea is that expense fraud involves manipulating the reimbursement process to get company money for personal costs. Listing personal travel as business travel hides private spending inside a corporate expense, inflating the claim and bypassing the policy. Requesting reimbursement for an expense that was never incurred is a direct false claim, trying to recoup money for something that didn’t happen. Listing dinner with a friend as a business development expense misstates a personal social event as a business activity to obtain funds. Each example shows the same improper use of the reimbursement system for personal gain, so the option that includes all of these patterns is the best choice. In practice, organizations counter this with strict receipts, clear business purpose requirements, proper categorization, and thorough audits to detect and prevent such schemes.