Free CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Exam Dumps Preview

Question 1

Single choice

Most of the shell company schemes involve the purchase of goods rather than services.

1. A

   True

2. B

   False

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Correct answerB

Question 2

Fill in the blank

__________ means that traditional bribery statutes proscribe only payments made to influence the decisions of government agents or employees.

A. Official act

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Accepted answerA

Question 3

Single choice

Conflict of interest cases are more easily prevented than detected.

1. A

   True

2. B

   False

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Correct answerA

Question 4

Single choice

Maintain the presence of a manager or supervisor near the area of the cash register as a deterrent to theft is a prevention for:

1. A

   Fraudulent statement scheme

2. B

   Asset misappropriation scheme

3. C

   Larceny scheme

4. D

   Register disbursement scheme

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Correct answerD

Question 5

Single choice

Which of the following are the classifications for the Corruption?

1. A

   Bribery, economic extortion, illegal gratuities and conflicts of interest

2. B

   Corruption, bribery, economic extortion, conflicts of interest

3. C

   Overbilling, bribery, bid-ridding and illegal gratuities

4. D

   economic extortion, bribery, illegal gratuities and corruption

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Correct answerA

Question 6

Single choice

Which of the following is NOT the reason to bribe employees of the purchaser?

1. A

   To ensure receipt of a late bid

2. B

   To extend the bid opening date

3. C

   To ensure bid-splitting

4. D

   To falsify the bid log

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Correct answerC

Question 7

Single choice

__________revenues involve the recording sales of goods or services hat did not occur.

1. A

   Fictitious or fabricated revenues

2. B

   Financial revenues

3. C

   Red flag revenues

4. D

   Concealed revenues

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Correct answerA

Question 8

Single choice

A voucher is:

1. A

   a file that includes the purchase order that was send to the vendor, the vendor invoice listing the cost and quantity of items purchased , and the internal receiving reports that verify the purchased items have been delivered.

2. B

   a figure that includes the sale order that was send to the dealer, the vendor invoice listing the cost and quantity of items sold , and the internal receiving reports that verify the purchased items have been delivered.

3. C

   a report that includes the purchase order that was send to the vendor, the vendor invoice listing the quality and quantity of items purchased , and the external receiving reports that verify the items have been sold.

4. D

   a mammogram that includes the purchase order that was send to the purchaser, the purchaser invoice listing the benefits and quantity of items purchased , and the internal receiving reports that verify the purchased items have been sold.

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Correct answerA

Question 9

Single choice

A__________is a day-by-day, or chronological, record of transactions

1. A

   Asset

2. B

   Journal

3. C

   Checkbook

4. D

   Ledger

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Correct answerB

Question 10

Single choice

One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.

1. A

   True

2. B

   False

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Correct answerA

Question 11

Single choice

Which of the following is the criterion for bid solicitation?

1. A

   Containing false statements

2. B

   Allowing the purchaser to discuss possible employment with the contractor

3. C

   To withdraw low bids

4. D

   To falsify the bid log

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Correct answerB

Question 12

Single choice

Fraudsters use the accounting system as a tool to generate the results they want in __________approach:

1. A

   Organized accounting

2. B

   Playing the accounting

3. C

   beating accounting

4. D

   All of the above

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Correct answerB

Question 13

Single choice

Which of the following is NOT the type of billing scheme?

1. A

   Invoicing via shell companies

2. B

   Invoicing via non-accomplice companies

3. C

   Invoicing via accomplice companies

4. D

   Personal purchases with company funds

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Correct answerC

Question 14

Single choice

Which of the following is NOT the type of billing scheme?

1. A

   Invoicing via shell companies

2. B

   Invoicing via non-accomplice companies

3. C

   Invoicing via accomplice companies

4. D

   Personal purchases with company funds

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Correct answerC

Question 15

Single choice

Which of the following is NOT the reason why senior management will overstate business statement?

1. A

   Comply with debit covenants

2. B

   Meet personal performance criteria

3. C

   Trigger performance related compensation

4. D

   Show a pattern of growth to support sale of a business

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Correct answerA

Question 16

Single choice

Skimming is:

1. A

   The removal of cash from a victim entity prior to its entry in an accounting system.

2. B

   The addition of cash from a victim entity prior to its entry in an accounting system.

3. C

   The removal of cash from a victim entity after its entry in an accounting system.

4. D

   None of above

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Correct answerA

Question 17

Single choice

Which of the following must be present for a fraud to exist?

1. A

   A material false statement

2. B

   Knowledge that the statement was false when it was uttered

3. C

   Reliance on the fast statement by the victim

4. D

   All of the above

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Correct answerD

Question 18

Single choice

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

1. A

   True

2. B

   False

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Correct answerB

Question 19

Single choice

In which approach, fraudsters produce whatever financial statements they wish, perhaps using just a typewriter or a personal computer.

1. A

   Organized accounting

2. B

   Playing the accounting

3. C

   Beating accounting

4. D

   Outside accounting system

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Correct answerD

Question 20

Single choice

Which counts sometimes can give rise to inventory theft detection?

1. A

   Perpetual inventory counts

2. B

   Physical inventory counts

3. C

   Concealment inventory counts

4. D

   None of the above

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Correct answerB

Question 21

Single choice

Which of the following is NOT the method for stealing inventory and other assets?

1. A

   Larceny schemes

2. B

   Asset requisition and transfer

3. C

   Purchasing and receiving schemes

4. D

   Sales & Equipment handling

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Correct answerD

Question 22

Single choice

Physical tampering prevention is a check tampering technique that is used to secure bank-assisted controls.

1. A

   True

2. B

   False

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Correct answerB

Question 23

Single choice

Accounting records are designed to be kept on subjective rather than objective evidence.

1. A

   True

2. B

   False

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Correct answerB

Question 24

Single choice

Once the expense account is closed, it becomes a historical item and probably will never be reviewed again.

1. A

   True

2. B

   False

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Correct answerA

Question 25

Single choice

Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.

1. A

   True

2. B

   False

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Correct answerA

Question 26

Single choice

__________and__________are used to increase (or decrease) the equity account.

1. A

   Journal Entries & Debit

2. B

   Journal Entries & transactions

3. C

   Journal Entries & Credit

4. D

   None of all

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Correct answerB

Question 27

Single choice

According to fraud tree, cash has three following schemes:

1. A

   Skimming, cash larceny and fraudulent disbursements

2. B

   Fraud analysis, skimming and cash misappropriations

3. C

   Cash larceny, cash distribution and fraudulent disbursements

4. D

   Cash distribution, skimming and fraud analysis

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Correct answerA

Question 28

Single choice

In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

1. A

   Violation

2. B

   Isolation

3. C

   Rationalization

4. D

   None of the above

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Correct answerC