Rationale for Correct Answer:In a fraudulent purchase scheme, the company legitimately purchases assets, but the fraudster diverts or misappropriates them after acquisition. The purchase itself is real, but the use of the assets is fraudulent.
Analysis of Incorrect Options:
A. Inventory larceny scheme – Direct theft without purchase.
B. Asset receiving scheme – Not a recognized fraud scheme.
D. Falsify shipping – Involves falsifying shipment records, not post-purchase misappropriation.
Key Concept:Fraudulent purchases — assets are bought legitimately but stolen afterward.
[Reference:ACFE Fraud Examiners Manual (2020 International Edition), Inventory and Other Assets — Purchasing and Receiving Schemes., , ]
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