Which of the following analyses can be used to identify ghost employee schemes?
A) Identifying employees who have no withholding taxes taken out
B) Comparing actual payroll expenses to budgeted expenses
C) Comparing employees who have the same Social Security number, bank account, or physical address
D) All of the above

Question

Quizplus · Accepted Answer

All of the above methods can be used to identify potential ghost employee schemes. A ghost employee is a false or non-existent employee added to the payroll for the purpose of generating fraudulent payments. Identifying employees with no withholding taxes taken out may indicate that an employee is not real, while comparing actual payroll expenses to budgeted expenses may help uncover discrepancies. Additionally, comparing employees who have the same Social Security number, bank account, or physical address may indicate that multiple employees are actually the same person, which could be a sign of a ghost employee scheme.

Which of the Following Analyses Can Be Used to Identify