Jim Stevens is a payroll manager for a mid-sized insurance company in the southeast. Last year, his performance review was conducted late, so he received a retroactive pay increase. Because he was not authorized to access his own employee records, Stevens stole another employee's password and logged into the payroll system. He manipulated his records to keep the retroactive pay increase in effect in future periods, effectively doubling his intended pay raise. What type of fraud is this?
A) Larceny of wages
B) Falsified hours and salary scheme
C) Commission scheme
D) Ghost employee scheme

Question

Quizplus · Accepted Answer

This is a falsified hours and salary scheme as Jim Stevens manipulated his employee records to keep the retroactive pay increase in effect in future periods, effectively doubling his intended pay raise.

Jim Stevens Is a Payroll Manager for a Mid-Sized Insurance