Principles of Fraud Examination, 4th Edition

EXHIBIT 4-1

CHAPTER 4

BILLING SCHEMES

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

4-1	List the five major categories of fraudulent disbursements
4-2	Define billing schemes
4-3	List the three categories of billing schemes
4-4	Understand what a shell company is and how it is formed
4-5	List and understand the four ways false invoices are approved for payment
4-6	Understand why most shell company schemes involve the purchase of services rather than goods
4-7	Understand how a pass-through scheme differs from the usual shell company schemes
4-8	Be familiar with the methods identified in this chapter for preventing and detecting shell company schemes
4-9	Understand how pay-and-return schemes work
4-10	Understand how nonaccomplice vendor schemes work
4-11	Be familiar with the methods identified in this chapter for preventing and detecting nonaccomplice vendor schemes
4-12	Understand how personal purchases schemes work
4-13	Be familiar with the methods identified in this chapter for preventing and detecting personal purchases schemes
4-14	Be familiar with proactive audit tests that can be used to detect billing schemes

CASE STUDY: MEDICAL SCHOOL TREATS FRAUD AND ABUSE¹

Fraud seemed to plague a certain Southeastern medical college, with one bad case erupting after another. One supervisor's minor transgression opened a Pandora's ...