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

• Question 171:

  Which of the following search is used for unusually high incidence of returns and allowances scheme?

  A. Allowances by vendors

  B. Disposals of allowances than reorders

  C. Returns and allowances

  D. None of the above

  Correct Answer: C

• Question 172:

  ___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.

  A. Equity

  B. Balance sheet

  C. Income statement

  D. Financial record

  Correct Answer: B

• Question 173:

  A typical issue involving material and fraud would be:

  A. Fraudulent statement

  B. Misappropriations

  C. Civil lawsuit

  D. Quality control

  Correct Answer: B

• Question 174:

  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:

  A. Microline numbering

  B. Holographic safety border

  C. Embossed pearlescent numbering

  D. None of the above

  Correct Answer: B

• Question 175:

  The person or persons who have access to __________ are often the targets of unethical vendors seeking an advantage in the process.

  A. Bid-splitting

  B. Sealed bids

  C. General purchasing

  D. Tailor specifications

  Correct Answer: B

• Question 176:

  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.

  A. True

  B. False

  Correct Answer: B

• Question 177:

  Another way to eliminate competition in the solicitation phase of the selection process is to:

  A. Solicit bid from fictitious suppliers

  B. Solicit transaction from fictitious vendors

  C. Solicit bid-splitting from fictitious vendors

  D. None of the above

  Correct Answer: A

• Question 178:

  _________ assumes the business will go on indefinitely in the future.

  A. Materiality

  B. Going concern

  C. Cost

  D. Fair value

  Correct Answer: B

• Question 179:

  According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

  A. Persuasive evidence of an arrangement exists

  B. Services has been rendered

  C. Timings have been met

  D. Collectability is reasonably assured

  Correct Answer: C

• Question 180:

  CORRECT TEXT _________ is defined as a person who works for the victim organization and who is primary culprit

  Correct Answer: Principal perpetrator