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ACFE CFE-Financial-Transactions-and-Fraud-Schemes Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Exam Practice Test

Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Questions and Answers

Question 1

When situational pressures and perceived opportunities are low and personal integrity is high, occupational fraud is much more likely to occur than when the opposite is true.

Options:

A.

True

B.

False

Question 2

Inventory shrinkage is the unaccounted-for reduction in the company’s inventory that does not results from theft.

Options:

A.

True

B.

False

Question 3

One reason employees might be hesitant to use PO boxes in shell company schemes is that some businesses are specially vary of sending checks to vendors that have street addresses only.

Options:

A.

True

B.

False

Question 4

If the assets are intentionally purchased by the company but simply misappropriated by the fraudster, this is referring to as:

Options:

A.

Inventory larceny scheme

B.

Asset receiving scheme

C.

Fraudulent purchase

D.

Falsify shipping

Question 5

The forms that allow noncash assets to be moved from one location in a company to another can be used to facilitate the misappropriation of those assets are called:

Options:

A.

Inventory usages

B.

Fake sales

C.

Asset requisition

D.

All of the above

Question 6

The _______________ cost method of pricing would carry an asset’s value on the financial statements as what it would currently cost, considering inflation.

Options:

Question 7

Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes and wages.

Options:

A.

Equity

B.

Balance sheet

C.

Expense

D.

Financial record

Question 8

The fraudsters’ interest lies with an employer other than a company.

Options:

A.

True

B.

False

Question 9

The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:

Options:

A.

Absolute value

B.

Fair value

C.

Cost value

D.

material value

Question 10

Physical assets including _________ and ________ are the most commonly misappropriated noncash asset in our study.

Options:

A.

Interest & Collusion

B.

Inventory & Equipment

C.

Inventory & Purchase

D.

Sales & Equipment

Question 11

In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

Options:

A.

Bid-rigging

B.

Kickbacks

C.

Competitive bidding

D.

Bid solicitation

Question 12

In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through:

Options:

A.

High-resolution sprays

B.

Holographic safety inks

C.

Watermark backers

D.

Chrome coloring

Question 13

The behavior profile of employees who are involved in bribery schemes may include:

Options:

A.

Gambling habit

B.

Extravagant lifestyle

C.

Drug and/or alcohol addiction

D.

All of the above

Question 14

Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:

Options:

A.

Account analysis

B.

Bank reconciliation

C.

Check disbursement controls

D.

Check tampering

Question 15

Multiple cashiers operate from a single cash drawer without separate access codes is a red flag for:

Options:

A.

Fraudulent scheme

B.

Disbursement scheme

C.

Register scheme

D.

Force inventory scheme

Question 16

Physical tampering prevention is a check tampering technique that is used to secure bankassisted controls.

Options:

A.

True

B.

False

Question 17

Larceny by Fraud or deception means that:

Options:

A.

Creates or reinforce a false impression

B.

Fails to correct a false impression

C.

Fails to disclose a known lien, adverse claim or other legal impediment

D.

All of the above

Question 18

__________ are the amounts which are owned to other entities:

Options:

A.

Supplies

B.

Expenses

C.

Assets

D.

Liabilities

Question 19

A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

Options:

A.

Microline numbering

B.

Holographic safety border

C.

Embossed pearlescent numbering

D.

None of the above

Question 20

___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Options:

Question 21

Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

Options:

A.

Check disbursement

B.

Bank confirmation

C.

Bank confirmation

D.

Cut-off statements

Question 22

Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

Options:

A.

Bid-rigging

B.

Kickbacks

C.

Presolicitaion

D.

None of the above

Question 23

According to fraud tree, cash has three following schemes:

Options:

A.

Skimming, cash larceny and fraudulent disbursements

B.

Fraud analysis, skimming and cash misappropriations

C.

Cash larceny, cash distribution and fraudulent disbursements

D.

Cash distribution, skimming and fraud analysis

Question 24

Which of the following is not the skimming scheme?

Options:

A.

Unrecorded sales

B.

Fraud & Cost

C.

Theft of checks through the mail

D.

Understand sales and receivables

Question 25

Which of the following offender types in which people who take the money and run away?

Options:

A.

Absconders

B.

Long-term violators

C.

Offender types

D.

None of the above

Question 26

Which of the following can constitute a bribe, even if the illicit payment is never actually made?

Options:

A.

Offering a payment

B.

Corruption in payment

C.

kickback payment

D.

Overbilling in payment

Question 27

Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

Options:

A.

True

B.

False