Vce CFE- Fraud-Schemes-and-Financial-Crimes Questions Latest

Detailed Explanation:

Rationale for Correct Answer: The balance sheet summarizes account balances from the ledger at a specific date, presenting assets, liabilities, and equity. It reflects the organization’s financial position and is derived from ledger balances.

Analysis of Incorrect Options:

B. Income statement – Summarizes revenues and expenses, not all ledger balances.

C. Financial statement – A general term, but the specific answer here is balance sheet.

D. General journal – Book of original entry, not a summary.

Key Concept: Balance sheet as a summary of ledger accounts.

Detailed Explanation:

Rationale for Correct Answer: According to the Fraud Examiners Manual (2020 International Edition) , offenders can be categorized into types. Absconders are individuals who commit fraud and immediately flee with the proceeds (“take the money and run”). They differ from long-term violators who maintain their frauds for extended periods while concealing them. Thus, the correct answer is A. Absconders .

Analysis of Incorrect Options:

B. Long-term violators – These offenders commit frauds over a long period and often maintain their positions of trust while continuing the scheme.

C. Offender types – Too vague; not a specific classification.

D. None of the above – Incorrect, since “Absconders” directly matches.

Key Concept: Offender Typologies — distinguishing between absconders and long-term violators in occupational fraud.

Detailed Explanation:

Rationale for Correct Answer: This description reflects asymmetrical accounting , which is based on the conservatism principle. Possible losses are recorded, but potential gains are omitted until realized. This creates an asymmetry in recognizing losses versus gains.

Analysis of Incorrect Options:

B. Symmetrical accounting – Would recognize gains and losses equally, contrary to conservatism.

C. Playing accounting – Fraud scheme, not a principle.

D. Bearing accounting – Not a recognized concept.

Key Concept: Asymmetry in accounting — conservative recognition of losses versus gains.

Detailed Explanation:

Rationale for Correct Answer: Bribes to purchasing employees often aim to:

Ensure late bids are accepted,

Extend deadlines unfairly,

Or falsify bid logs. Bid-splitting , however, is a scheme performed to avoid approval thresholds and does not require bribery of purchasing employees.

Analysis of Incorrect Options:

A. Receipt of late bid – Real reason to bribe.

B. Extend opening date – Real reason to bribe.

D. Falsify bid log – Real reason to bribe.

C. Ensure bid-splitting – Not a bribery motivation.

Key Concept: Bribery motivations in procurement fraud.