A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:
Rationale for Correct Answer:This scheme is known as a Turnaround Sale or Flip. The employee secretly purchases an asset their employer needs and then resells it to the employer at a markup, thereby profiting at the employer’s expense.
Analysis of Incorrect Options:
A. Conflict of interest in sale – Too general; does not describe the flipping mechanism.
C. Unauthorized sale – Not an ACFE fraud category in this context.
D. Written sale of unique assets – Not a recognized scheme.
Key Concept: Conflict of Interest scheme — Turnaround Sales/Flips.
Chosen Answer:
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