CFE-Financial-Transactions-and-Fraud-Schemes Exam Dumps : Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam

Detailed Explanation:

Rationale for Correct Answer: Affinity fraud occurs when fraudsters exploit trust within identifiable groups—such as religious, ethnic, or professional communities—making members more susceptible to deception.

Analysis of Incorrect Options:

B – Social control fraud relates to control fraud by institutions, not religious targeting.

C – Bait and switch is a deceptive sales tactic, not specific to religious groups.

D – Advance-fee scams may target anyone, not specifically religious communities.

Key Concept: Affinity fraud as a corruption/exploitation scheme.

Detailed Explanation:

Rationale for Correct Answer:Net realizable value (NRV) is the estimated selling price of an asset in the ordinary course of business, minus any costs of completion, disposal, or transportation. This is often applied in valuing accounts receivable and inventory.

Analysis of Incorrect Options:

B. Going concern – Assumption of business continuity, not asset valuation.

C. Cost – Historical cost, not future realizable value.

D. Fair value – Current market-based measure, not net proceeds after costs.

Key Concept:Net realizable value — valuation method for receivables and inventory.

Detailed Explanation:

Rationale for Correct Answer: Corporate spies do use social engineering, but their primary methods include surveillance, infiltration (e.g., posing as employees), and technical monitoring. The statement in option C is false because searching desks/workstations is a tactic, but it is not the primary method.

Analysis of Incorrect Options:

A – True; fake badges are a common infiltration tactic.

B – True; low-level jobs provide physical access.

D – True; technical surveillance is a recognized method.

Key Concept: Methods of corporate espionage.