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ACFE CFE-Financial-Transactions-and-Fraud-Schemes Dumps

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

Question 1

Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.

Options:

A.

True

B.

False

Question 2

A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:

Options:

A.

Bid opening

B.

Fictitious Bidding

C.

Bid pooling

D.

Bid log

Question 3

A tangible asset is one which is:

Options:

A.

capable of being perceived

B.

capable of being appraised

C.

Both A & B

D.

Neither A nor B

Question 4

__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

Options:

A.

Conflict of interest

B.

Turnaround sale or flip

C.

Disclosure

D.

Resource diversion

Question 5

A variation between the physical inventory and the perpetual inventory totals is called:

Options:

A.

Altered inventory

B.

Account receivable

C.

Shrinkage

D.

Write-offs

Question 6

_________ is defined as a person who works for the victim organization and who is primary culprit

Options:

Question 7

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 8

By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.

Options:

A.

Fraudulent statement

B.

Misappropriations

C.

Conservatism

D.

Matching

Question 9

Another way to eliminate competition in the solicitation phase of the selection process is to:

Options:

A.

Solicit bid from fictitious suppliers

B.

Solicit transaction from fictitious vendors

C.

Solicit bid-splitting from fictitious vendors

D.

None of the above

Question 10

“Anticipate possible losses and omit potential profits”, this results in:

Options:

A.

Asymmetrical accounting

B.

Symmetrical accounting

C.

Playing accounting

D.

Bearing accounting

Question 11

Which of the following is NOT the aspect of inventory purchase?

Options:

A.

Inventory purchases purposely increase in year 1 only to be liquidated in year 2.

B.

inventory for the year 2 will be much greater than year 1.

C.

Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales.

D.

might be some fraud scheme in inventory.

Question 12

Which of the following is NOT the phase of the bidding process?

Options:

A.

Presolicitation

B.

Postsolicitation

C.

Solicitation

D.

Submission

Question 13

The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

Options:

A.

Bogus claims

B.

Billing scheme

C.

Reliance billing

D.

Misappropriate claims

Question 14

Physical tampering prevention is a check tampering technique that is used to secure bank assisted controls.

Options:

A.

True

B.

False

Question 15

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

Options:

Question 16

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 17

The most common method for billing scheme is:

Options:

A.

Register

B.

Tips

C.

Accident

D.

None of the above

Question 18

According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

Options:

A.

Assets

B.

Liabilities

C.

Credentials

D.

None of above

Question 19

Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor’s side of the transaction who is not making an illicit payment.

Options:

A.

True

B.

False

Question 20

Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes and wages.

Options:

A.

Equity

B.

Balance sheet

C.

Expense

D.

Financial record

Question 21

The most common method of detection in corruption cases is:

Options:

A.

Internal audits

B.

Internal controls

C.

Tips

D.

By accident

Question 22

____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

Options:

A.

False shipping slip

B.

False packing slip

C.

Fraudulent inventory slip

D.

False credit slip

Question 23

A running count that records how much inventory should be on hand is referred to:

Options:

A.

Altered inventory

B.

Perpetual inventory

C.

Shrinking inventory

D.

Fictitious inventory

Question 24

False billing scheme states that:

Options:

A.

employees do not cause their company to purchase merchandise that the company does not need.

B.

employees cause their company to sale merchandise that the company does not need.

C.

employees do not cause their company to sale merchandise that the company does not need.

D.

employees cause their company to purchase merchandise that the company does not need

Question 25

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 26

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 27

Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, are called:

Options:

A.

Accruals

B.

Depreciations

C.

Expenses

D.

Financial record