SOFE SOFE Certifications SOFE-CFE Questions & Answers

• Question 321:

  Improper asset valuations usually fall into which of the following category?

  A. Inventory valuation

  B. Accounts receivable

  C. Business combinations

  D. All of the above

  Correct Answer: D

• Question 322:

  To debit accounts receivables and credit sales is the typical entry under:

  A. Fictitious account payables

  B. Fictitious account receivables

  C. Failure to write off account receivables

  D. Failure to write off account payables

  Correct Answer: B

• Question 323:

  According to Accounting Changes and Errors Corrections, which of the following is NOT the type accounting change that must be disclosed to avoid misleading the user of financial statements?

  A. accounting principles

  B. estimates

  C. reporting entities

  D. liability omissions

  Correct Answer: D

• Question 324:

  The costs that provide a benefit to a company over more than one accounting period are called:

  A. Capital expenses

  B. Revenue expenses

  C. Asset expenses

  D. Manufacturing equipments expenses

  Correct Answer: A

• Question 325:

  _________________ are potential obligations that will materialize only if certain events occur in future.

  A. Warranties returns

  B. Liability omissions

  C. Contingent liabilities

  D. Concealed expenses

  Correct Answer: C

• Question 326:

  Which of eth following is NOT the common method for concealing liabilities and expenses?

  A. Liability/expense omissions

  B. Capitalized expenses

  C. Failure to disclose warranty costs and liabilities

  D. Management fraud

  Correct Answer: D

• Question 327:

  Almost three quarters of the cases involving expense reimbursement fraud were perpetrated by someone at:

  A. Executive level

  B. Employee level

  C. Owner level

  D. Stakeholder level

  Correct Answer: A

• Question 328:

  Ghost employee schemes can be uncovered by having personnel distribute the payroll checks and by requiring positive identification of the payee.

  A. True

  B. False

  Correct Answer: A

• Question 329:

  Which of eth following is NOT the type of expense reimbursement scheme?

  A. Mischaracterized expenses

  B. Overstated expenses

  C. Fictitious expenses

  D. Reimbursement expenses

  Correct Answer: D

• Question 330:

  In what way the employees on commission can fraudulently increase their pay?

  A. falsify the amount of sales made

  B. increase the rate of commission

  C. Both A and B

  D. Neither A nor B

  Correct Answer: C