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

• Question 41:

  The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

  A. True

  B. False

  Correct Answer: A

• Question 42:

  Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes and wages.

  A. Equity

  B. Balance sheet

  C. Expense

  D. Financial record

  Correct Answer: C

• Question 43:

  ______________ can be detected by closely examining the documentation submitted with the cash receipts.

  A. Voided purchases

  B. Fictitious refunds

  C. Approved transaction

  D. None of the above

  Correct Answer: B

• Question 44:

  A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

  A. Accomplice residence

  B. Shell company

  C. Perpetrator check

  D. Cash generator

  Correct Answer: B

• Question 45:

  When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

  A. Presolicitation scheme

  B. Need recognition scheme

  C. False sole-source scheme

  D. Submission scheme

  Correct Answer: B

• Question 46:

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

  A. True

  B. False

  Correct Answer: A

• Question 47:

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

  A. To ensure receipt of a late bid

  B. To extend the bid opening date

  C. To ensure bid-splitting

  D. To falsify the bid log

  Correct Answer: C

• Question 48:

  ________ decrease assets and expenses and/or increase liabilities and/or equity

  A. Journal Entries

  B. Debit

  C. Credit

  D. None of all

  Correct Answer: C

• Question 49:

  Which counts sometimes can give rise to inventory theft detection?

  A. Perpetual inventory counts

  B. Physical inventory counts

  C. Concealment inventory counts

  D. None of the above

  Correct Answer: B

• Question 50:

  In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

  A. Bid-rigging

  B. Kickbacks

  C. Competitive bidding

  D. Bid solicitation

  Correct Answer: C