Asset misappropriation through fake expense reimbursements involves which behavior?

• A. Vendors inflate invoicing to siphon funds.
• B. Employees submit legitimate receipts for actual expenses.
• C. Employees memorize receipts to avoid submitting them.
• D. Employees submit false or inflated receipts to obtain reimbursement for non-work-related or non-existent expenses.

Answer: (D)

The idea being tested is how asset misappropriation can occur through the expense reimbursement process. When someone submits false or inflated receipts to obtain reimbursement for expenses that didn’t happen or aren’t work-related, they are converting the organization’s funds into personal gain by exploiting the reimbursement system. That’s exactly what this option describes: submitting false or inflated receipts to get reimbursement for non-work-related or non-existent expenses.

Why the others don’t fit as the core misappropriation: inflating invoices from vendors is fraud by suppliers, not an employee submitting bogus internal reimbursement claims; submitting legitimate receipts is proper behavior, not misappropriation; memorizing receipts to avoid submitting them doesn’t involve submitting fraudulent reimbursements.