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

• Question 31:

  A scheme is classified as a Conflict of interest:

  A. when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.

  B. when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.

  C. when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.

  D. when a dealer must have some kind of dealership interest in the vendor submitting the stock.

  Correct Answer: A

• Question 32:

  By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.

  A. Fraudulent statement

  B. Misappropriations

  C. Conservatism

  D. Matching

  Correct Answer: C

• Question 33:

  Bid-rigging scheme occurs when:

  A. an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.

  B. an employee does not assist a vendor in winning a contract through the competitive bidding process.

  C. an employee once assists a vendor in winning a contract through a single competitive bidding process.

  D. an employee once assists a vendor in winning a contract through a single competitive bidding process.

  Correct Answer: A

• Question 34:

  ____________ is a summary of the account balances carried in a ledger.

  A. Balance sheet

  B. Income statement

  C. Financial statement

  D. General journal

  Correct Answer: C

• Question 35:

  The difference between assets and liabilities is called: A. Equity

  B. Expense

  C. Revenue

  D. Income statement

  Correct Answer: A

• Question 36:

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

  A. True

  B. False

  Correct Answer: B

• Question 37:

  A variation between the physical inventory and the perpetual inventory totals is called:

  A. Altered inventory

  B. Account receivable

  C. Shrinkage

  D. Write-offs

  Correct Answer: C

• Question 38:

  Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

  A. Converting stolen checks

  B. Concealing the fraud

  C. Short-term skimming

  D. All of the above

  Correct Answer: C

• Question 39:

  The essential elements of a ________ are an actual or constructive taking away of the goods or property of another with the without the consent and against the will of the owner and with a felonious intent.

  A. Larceny

  B. Abuse

  C. Fiduciary

  D. None of the above

  Correct Answer: A

• Question 40:

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

  A. True

  B. False

  Correct Answer: A