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

• Question 21:

  The seller's price to the buyer is not fixed or determinable when:

  A. When the price is not contingent on some future events

  B. The transaction includes an option to exchange the product for others.

  C. A service or membership fee is not subject predictable cancellation during the contract period.

  D. Payment terms are not extended for a substantial period.

  Correct Answer: B

• Question 22:

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

  A. Invoicing via shell companies

  B. Invoicing via non-accomplice companies

  C. Invoicing via accomplice companies

  D. Personal purchases with company funds

  Correct Answer: C

• Question 23:

  Which of the following factors is NOT included in most financial statement schemes?

  A. Fictitious revenues

  B. Persuasive Evidence

  C. Concealed liabilities and expenses

  D. Improper asset valuations

  Correct Answer: B

• Question 24:

  Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.

  A. True B. False

  Correct Answer: A

• Question 25:

  Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.

  A. True

  B. False

  Correct Answer: B

• Question 26:

  ________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

  A. Deceive

  B. Delude

  C. Mislead

  D. Beguile

  Correct Answer: B

• Question 27:

  When employees avoid detection in a refund scheme to keep the sizes of the disbursement low, is referred to:

  A. Small disbursements

  B. Very small disbursements

  C. Simple disbursements

  D. None of the above

  Correct Answer: A

• Question 28:

  A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

  A. Fiduciary Capacity

  B. Embezzlement

  C. Conversion

  D. None of the above

  Correct Answer: A

• Question 29:

  Larceny by Fraud or deception means that:

  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

  Correct Answer: D

• Question 30:

  ___________ 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