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

• Question 71:

  Most of the shell company schemes involve the purchase of goods rather than services.

  A. True

  B. False

  Correct Answer: B

• Question 72:

  Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, are called:

  A. Accruals

  B. Depreciations

  C. Expenses

  D. Financial record

  Correct Answer: A

• Question 73:

  Inventory shrinkage is the unaccounted-for reduction in the company's inventory that does not results from theft.

  A. True

  B. False

  Correct Answer: B

• Question 74:

  Financial statement fraud is committed by:

  A. Organized criminals

  B. Mid and lower level employees

  C. Senior Management

  D. All of the above

  Correct Answer: D

• Question 75:

  The most common method of detection in corruption cases is: A. Internal audits

  B. Internal controls

  C. Tips

  D. By accident

  Correct Answer: C

• Question 76:

  A journal in which all sales made on credit or cash are listed is:

  A. Disbursement journal

  B. Accounts receivable journal

  C. Accounts payable journal

  D. General journal

  Correct Answer: B

• Question 77:

  Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

  A. Check disbursement

  B. Bank confirmation

  C. Bank confirmation

  D. Cut-off statements

  Correct Answer: C

• Question 78:

  A ___________ occurs when an employee, manager or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.

  A. Conflict of interest

  B. Illegal sale

  C. Unauthorized purchase

  D. Financial disclosure

  Correct Answer: A

• Question 79:

  ______________ 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 80:

  When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

  A. Equity

  B. Accrual basis accounting

  C. Expense

  D. Financial record

  Correct Answer: B