Pass Using CFE- Fraud-Schemes-and-Financial-Crimes Exam Dumps

Detailed Explanation:

Rationale for Correct Answer: Administrative security controls involve policies, procedures, and practices designed to manage the overall security environment—such as awareness training, audits, data classification, and enforcement of policies. These controls focus on governance rather than direct system configuration.

Analysis of Incorrect Options:

A. Technical security controls – These are automated safeguards (e.g., firewalls, encryption).

B. Logical access controls – Restrict access to systems through passwords, tokens, or biometrics.

D. Physical access controls – Restrict physical access (e.g., locks, guards, CCTV).

Key Concept: Layers of security controls (administrative, technical, physical).

Detailed Explanation:

Rationale for Correct Answer: Departures from GAAP may be justified if compliance produces misleading results, if the transaction is immaterial, or if the costs exceed benefits. However, simply departing from GAAP because assets would be understated and liabilities overstated is not an acceptable reason ; GAAP requires faithful representation even if results are unfavorable.

Analysis of Incorrect Options:

A – Cost-benefit considerations are valid grounds in practice.

C – Materiality is a recognized exception to strict GAAP application.

D – Preventing misleading statements is a valid justification.

Key Concept: GAAP exceptions are limited to cost-benefit, immateriality, and preventing misleading reporting .

Detailed Explanation:

Rationale for Correct Answer: Social engineering involves manipulating or deceiving people into revealing confidential information or taking actions that aid the attacker (e.g., clicking malicious links, sharing credentials). It targets human weaknesses rather than technical vulnerabilities.

Analysis of Incorrect Options:

A. IP spoofing – Forging an IP address to disguise origin.

B. Electronic piggybacking – Unauthorized use of someone else’s access connection.

C. Packet sniffing – Monitoring data traffic across a network.

Key Concept: Cyberfraud techniques – social engineering.

Detailed Explanation:

Rationale for Correct Answer: In a fraudulent purchase scheme , the company legitimately purchases assets, but the fraudster diverts or misappropriates them after acquisition. The purchase itself is real, but the use of the assets is fraudulent.

Analysis of Incorrect Options:

A. Inventory larceny scheme – Direct theft without purchase.

B. Asset receiving scheme – Not a recognized fraud scheme.

D. Falsify shipping – Involves falsifying shipment records, not post-purchase misappropriation.

Key Concept: Fraudulent purchases — assets are bought legitimately but stolen afterward.