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ACFE CFE-Financial-Transactions-and-Fraud-Schemes Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Exam Practice Test

Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Questions and Answers

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Question 1

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

Options:

A.

Proper documentation, segregation of duties, independent checks and physical safeguards

B.

Proper documentation, segregation of duties, independent checks and inventory control

C.

Proper documentation, physical padding, independent checks and physical safeguards

D.

prenumbered affiliations, segregation of duties, independent checks and physical safeguards

Question 2

When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

Options:

A.

Presolicitation scheme

B.

Need recognition scheme

C.

False sole-source scheme

D.

Submission scheme

Question 3

A __________ is a day-by-day, or chronological, record of transactions

Options:

A.

Asset

B.

Journal

C.

Checkbook

D.

Ledger

Question 4

Bid-rigging scheme occurs when:

Options:

A.

an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.

B.

an employee does not assist a vendor in winning a contract through the competitive bidding process.

C.

an employee once assists a vendor in winning a contract through a single competitive bidding process.

D.

an employee once assists a vendor in winning a contract through a single competitive bidding process.

Question 5

When employee committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

Options:

A.

Registry destroying records

B.

Register false voids

C.

Fraudulent register occurrences

D.

Concealing register disbursement

Question 6

Delivery has not occurred or services have not been rendered when:

Options:

A.

Until installation and customer testing and acceptance has occurred.

B.

A written order exists but contains a right of return.

C.

Both A & B

D.

Neither A nor B

Question 7

Larceny by Fraud or deception means that:

Options:

A.

Creates or reinforce a false impression

B.

Fails to correct a false impression

C.

Fails to disclose a known lien, adverse claim or other legal impediment

D.

All of the above

Question 8

Which of the following is the criterion for bid solicitation?

Options:

A.

Containing false statements

B.

Allowing the purchaser to discuss possible employment with the contractor

C.

To withdraw low bids

D.

To falsify the bid log

Question 9

The difference between assets and liabilities is called:

Options:

A.

Equity

B.

Expense

C.

Revenue

D.

Income statement

Question 10

________ decrease assets and expenses and/or increase liabilities and/or equity

Options:

A.

Journal Entries

B.

Debit

C.

Credit

D.

None of all

Question 11

Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

Options:

A.

Converting stolen checks

B.

Concealing the fraud

C.

Short-term skimming

D.

All of the above

Question 12

The forms that allow noncash assets to be moved from one location in a company to another can be used to facilitate the misappropriation of those assets are called:

Options:

A.

Inventory usages

B.

Fake sales

C.

Asset requisition

D.

All of the above

Question 13

__________ inventory and other assets is relatively common way for fraudsters to remove assets from the books before or after they are stolen.

Options:

A.

Altered

B.

Perpetual

C.

False shipping slip

D.

Write-offs

Question 14

Entering a sales total lower than the amount actually paid by the customer is called:

Options:

A.

Underrings a sale

B.

Recording a sale procedure

C.

Internal sales audits

D.

All of the above

Question 15

Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

Options:

A.

Check disbursement

B.

Bank confirmation

C.

Bank confirmation

D.

Cut-off statements

Question 16

Most of the shell company schemes involve the purchase of goods rather than services.

Options:

A.

True

B.

False

Question 17

When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

Options:

A.

Forced Balance

B.

Out-of-balance

C.

False balance

D.

None of all

Question 18

Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

Options:

A.

Check disbursement

B.

Bank confirmation

C.

Bank confirmation

D.

Cut-off statements

Question 19

According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.

Options:

A.

62 versus 36

B.

61 versus 39

C.

62 versus 37

D.

None of the above

Question 20

Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?

Options:

A.

Voided checks

B.

Payable checks

C.

Missing checks

D.

Duplicate checks

Question 21

A typical issue involving material and fraud would be:

Options:

A.

Fraudulent statement

B.

Misappropriations

C.

Civil lawsuit

D.

Quality control

Question 22

One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

Options:

Question 23

Which of the following is NOT the type of billing scheme?

Options:

A.

Invoicing via shell companies

B.

Invoicing via non-accomplice companies

C.

Invoicing via accomplice companies

D.

Personal purchases with company funds

Question 24

According to Hollinger and Clark for Policy development, management must pay attention to:

Options:

A.

A clear understanding regarding theft behavior

B.

Enforcement of sanctions

C.

Both A & B

D.

Neither A nor B

Question 25

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

Options:

A.

Payable cash

B.

Cash advances

C.

counterfeit checks

D.

Payable checks

Question 26

A shell company scheme in which actual goods or services are sold to the victim company is known as:

Options:

A.

Maintenance scheme

B.

Allocation scheme

C.

Distribution scheme

D.

Pass-through scheme

Question 27

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

Options:

A.

Payable cash

B.

Cash advances

C.

counterfeit checks

D.

Payable checks