How does one commit accounts receivable fraud?
a) submit a fake invoice and pocket the money
b) bill customers for the amount they purchased, but record lower purchases in the ledger and pocket the money
c) create a ghost employee to defraud a payroll
d) order unneeded inventory, which gets subsequently stolen and used or sold

The answer is B) bill customers for the amount they purchased, but record lower purchases in the ledger and pocket the money. A fraud is one of two types of mistake in the recording process which done with a deliberate intention. The account receivable department responsible for recording sales transaction and billing the customers. Thus, the account receivable fraud can be committed in this process.

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