15. donna holbrook, an administrative assistant at mason enterprises, charged some office supplies to

15. donna holbrook, an administrative assistant at mason enterprises, charged some office supplies to the company credit card. several weeks later, she attached the store receipt from the purchase to an expense report and requested reimbursement from the company. this is an example of which type of expense reimbursement scheme?

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  1. Multiple reimbursement scheme


    What Donna Holbrook did is considered a case of multiple reimbursement. This means she requested the payment of the expense more than once. She first used the company credit card to buy the office supplies. This means that she didn’t use her own money because the credit card wasn’t hers. But a month after that, she used the receipt to request reimbursement from the company implying that she bought those supplies with her own money. By doing so, the company is paying twice for a purchase that was done only once. There’re also other kind of expense reimbursement schemes: fictitious expense schemes (when the expense is actually not real but made up by the employee); overstated expense schemes (when the employee inflates the expense in order to keep the extra money); and mischaracterized expense schemes (this occurs when the employee intends to get reimbursement for an expense that is personal and not related to the business).

  2. The answer is True. Donna committed Multiple Reimbursement.


    Multiple reimbursement is when an employee purchases a particular product or service and tenders different forms of payment receipts for the purpose of profiting from his/her employer/organization.

    As in the question above, we can see that Donna Holbrook did not use the initial receipt from the credit card transaction. Instead, she tendered another receipt from the store for the same expense in her expense report. In this case, the cost for the office supplies had already been paid for by the company, but Donna reported a different receipt, hoping it would serve as proof that she in fact incurred the cost herself and therefore be reimbursed.

    The company will therefore, be incurring the same cost twice.

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