CLG 006 Certifying Officer Practice Exam

In the Purchase Card program, what are the two types of fraud that may lead to erroneous payments?

1. Unauthorized purchases and duplicate payments

2. Bank invoice and cardholder certified transactions

3. Policy violations and misuse of funds

4. Fraudulent claims and asset misappropriation

The correct answer is: Bank invoice and cardholder certified transactions

The correct answer identifies the types of actions that specifically pertain to fraudulent activities relating to the Purchase Card program. Unauthorized purchases and duplicate payments are significant concerns in this context. Unauthorized purchases refer to transactions made without proper authorization, which can lead to financial losses and misuse of funds. Duplicate payments occur when a charge is processed multiple times for the same transaction, often leading to confusion and erroneous charges. Both of these types of fraud directly impact the integrity of the Purchase Card program and can result in significant financial discrepancies. The other options do touch on issues relevant to fraud and financial mismanagement but do not specifically align with the types of fraud that lead to erroneous payments in the context of the Purchase Card program. For instance, while policy violations and misuse of funds are important to consider, they may not directly equate to fraud in the same way that unauthorized purchases and duplicate payments do. Fraudulent claims and asset misappropriation also represent serious misconduct but are broader terms that may not specifically relate to the transaction errors that the Purchase Card program is designed to mitigate.