ACFE Certified Fraud Examiner CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Questions & Answers

• Question 1:

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

  A. True

  B. False

  Correct Answer: B

• Question 2:

  _________ normally are carried on an organization's books as expenses because they tend to be consumed by the organization within a year of purchase.

  A. Supplies

  B. Expenses

  C. Assets

  D. Equity

  Correct Answer: A

• Question 3:

  Persuasive evidence of an arrangement does not exist when:

  A. Revenue and corresponding expenses doesn't match each other.

  B. No written or verbal agreement exists.

  C. Timings not meet properly

  D. Capitalized expenses and Liabilities will not be up to satisfied level

  Correct Answer: B

• Question 4:

  Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

  A. True

  B. False

  Correct Answer: A

• Question 5:

  What is sometimes used to overcome well-designed internal controls of a victim company?

  A. Shell company

  B. Fraudulent invoices

  C. Collusion

  D. Rubber stamp supervisors

  Correct Answer: C

• Question 6:

  Perceived certainty of detection is directly related to employee theft for respondents in all industry sectors, that is the stronger the perception that theft would be detected, the more the likelihood that the employee would engage in deviant behavior.

  A. True

  B. False

  Correct Answer: B

• Question 7:

  According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

  A. Revenue and corresponding expenses

  B. Revenue and Income statement

  C. Income statement and Long-term contracts

  D. Capitalized expenses and Liabilities

  Correct Answer: A

• Question 8:

  ___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

  A. Payable cash

  B. Cash advances

  C. counterfeit checks

  D. Payable checks

  Correct Answer: B

• Question 9:

  The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

  A. Bogus claims

  B. Billing scheme

  C. Reliance billing

  D. Misappropriate claims

  Correct Answer: A

• Question 10:

  The principle behind full disclosure is:

  A. Any material deviation from GAAP must be explained to the reader of the financial information.

  B. Any material deviation from SAS must be explained to the writer oh the financial information.

  C. Any material deviation from GAAP must be explained to writer of the financial information.

  D. None of above

  Correct Answer: A