Certified Fraud Examiner CFE-Financial-Transactions-and-Fraud-Schemes Full Course Free

Detailed Explanation:

Rationale for Correct Answer: In the detection and analysis phase of cybersecurity incident response, the focus is on identifying the scope of the incident, including all breaches, compromised systems, and the method of attack. Containment, eradication, and recovery occur in later steps. Thus, identifying all breaches is the correct activity for this step.

Analysis of Incorrect Options:

A. Limiting damage – This occurs in the containment phase.

B. Creating an incident response plan – This is part of the preparation phase.

C. Restoring control of affected systems – This occurs during eradication and recovery.

Key Concept: Incident response methodology: preparation → detection/analysis → containment → eradication → recovery.

Detailed Explanation:

Rationale for Correct Answer:Trend analysis is one of the most effective ways to detect omitted credits. By analyzing patterns in revenue, expenses, or balances over time, discrepancies such as missing credits become apparent. Forensic examiners rely on comparative financial analysis to identify anomalies that suggest manipulation.

Analysis of Incorrect Options:

A. Forced Balance – Describes concealment, not detection.

C. Expense account – Accounts can be manipulated but are not detection methods.

D. None of all – Incorrect, since trend analysis is correct.

Key Concept:Analytical procedures (trend analysis) in fraud detection.

Detailed Explanation:

Rationale for Correct Answer:Conflict of interest is often uncovered through proactive investigative methods such as tips, vendor ownership review, and employee interviews. Underbilling schemes, however, relate to Financial Statement Fraud and Revenue Recognition Manipulation, not conflict of interest detection.

Analysis of Incorrect Options:

A. Tips & Complaints – Common detection method; many corruption schemes are revealed this way.

B. Review of vendor ownership files – Critical to identify hidden ownership ties.

D. Interviews with purchasing personnel – Helps detect suspicious relationships or favoritism.

Key Concept: Detection of Conflict of Interest schemes.

Detailed Explanation:

Rationale for Correct Answer:The most basic skimming scheme is when an employee completes a legitimate sale, collects payment, but never records the transaction. The stolen cash is never entered in the books, making it an “off-book” fraud.

Analysis of Incorrect Options:

B & D – Describe purchasing scenarios, irrelevant to skimming.

C – Records the sale, meaning the transaction enters the books (not skimming).

Key Concept:Unrecorded Sales as the simplest form of skimming.