ACFE ACFE Certifications CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Questions & Answers

• Question 51:

  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 52:

  Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:

  A. Account analysis

  B. Bank reconciliation

  C. Check disbursement controls

  D. Check tampering

  Correct Answer: C

• Question 53:

  Multiple cashiers operate from a single cash drawer without separate access codes is a red flag for:

  A. Fraudulent scheme

  B. Disbursement scheme

  C. Register scheme

  D. Force inventory scheme

  Correct Answer: C

• Question 54:

  In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

  A. Violation

  B. Isolation

  C. Rationalization

  D. None of the above

  Correct Answer: C

• Question 55:

  Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

  A. Proper documentation, segregation of duties, independent checks and physical safeguards

  B. Proper documentation, segregation of duties, independent checks and inventory control

  C. Proper documentation, physical padding, independent checks and physical safeguards

  D. prenumbered affiliations, segregation of duties, independent checks and physical safeguards

  Correct Answer: A

• Question 56:

  Accounting records are designed to be kept on subjective rather than objective evidence.

  A. True

  B. False

  Correct Answer: B

• Question 57:

  Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?

  A. Net realizable value

  B. Going concern

  C. Cost

  D. Fair value

  Correct Answer: A

• Question 58:

  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 59:

  What can make it easy for an employee to skim sales or receivables?

  A. Revenue sources and recording procedures

  B. Poor collection and recording procedures

  C. Internal audits and recording procedures

  D. Register manipulations and recording procedures

  Correct Answer: B

• Question 60:

  The heart of book keeping system is the ___________.

  A. Asset

  B. Liability

  C. Checkbook

  D. Journal

  Correct Answer: C