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

Detailed Explanation:

Rationale for Correct Answer: Irregular, low-value, or unpredictable revenue sources such as parking fees, late charges, or vending machine sales are prime skimming targets. Because they are difficult to estimate or reconcile precisely, theft of these funds is less likely to be detected quickly.

Analysis of Incorrect Options:

B. Recorded sales – These are already in the books and easier to reconcile.

C. Internal audits – A control mechanism, not a target.

D. Register manipulations – A method, not the revenue source itself.

Key Concept: Vulnerable revenue streams as skimming targets.

Detailed Explanation:

Rationale for Correct Answer: This scheme is known as a Turnaround Sale or Flip . The employee secretly purchases an asset their employer needs and then resells it to the employer at a markup, thereby profiting at the employer’s expense.

Analysis of Incorrect Options:

A. Conflict of interest in sale – Too general; does not describe the flipping mechanism.

C. Unauthorized sale – Not an ACFE fraud category in this context.

D. Written sale of unique assets – Not a recognized scheme.

Key Concept: Conflict of Interest scheme — Turnaround Sales/Flips .

The correct answer is D. Self-regulatory organizations are industry-based bodies that perform certain oversight functions under the supervision of securities regulators in some jurisdictions. Their duties can include monitoring member firms, examining trading operations, enforcing industry rules, and supporting market integrity. Option A is inaccurate because SROs are not simply governmental entities, although they may operate under statutory recognition or regulatory oversight. Option B is too absolute because SROs may participate in dispute resolution or arbitration in some jurisdictions. Option C is also overstated because SRO authority generally focuses on members and regulated market participants, not securities-related allegations within all private companies. The ACFE materials recognize self-regulation as part of the securities regulatory framework, subject to oversight and standards of fairness and confidentiality.