Which of the following best describes billing schemes?

Billing schemes are a form of occupational fraud that specifically involve the illicit manipulation of invoicing processes to misappropriate funds from an organization. Inflating invoices or creating fictitious invoices allows an individual, often an employee or vendor, to receive payments for goods or services that are either overpriced or do not exist at all. This manipulation can take various forms, such as altering the quantities or costs on legitimate invoices or fabricating completely new invoices for nonexistent products or services. By using this method, the perpetrator can effectively divert money from the company without raising immediate suspicion.

In contrast, other options pertain to different types of fraudulent activity. For instance, manipulating financial statements targets the overall presentation of a company's financial health and is more oriented towards misleading stakeholders rather than directly misappropriating funds through invoicing. Stealing funds before they are accounted for typically pertains to skimming, which involves taking money before it is recorded in the accounting system, rather than using an invoicing scheme. Submitting fake travel expense reports is a form of expense reimbursement fraud, which is different from billing schemes since it deals with reimbursement for expenses rather than invoice manipulation for goods or services rendered. Thus, the focus on inflating or creating fictitious invoices distinctly aligns with the characteristics of billing schemes