ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes - CFE-Financial-Transactions-and-Fraud-Schemes Exam Practice Test
Physical assets including _________ and ________ are the most commonly misappropriated noncash assets in our study.
Correct Answer: D
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
Employees with the authority to grant discounts in order to skim revenues may use which authority?
Correct Answer: B
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
______________ is required not only for theft, but for procedures to detect errors, avoid waste, and ensure a proper amount of inventory is maintained.
Correct Answer:
Internal control (Inventory Control)
* Rationale for Correct Answer:Strong internal controls - particularly inventory controls - are essential not just to prevent theft, but also to detect errors, reduce waste, and ensure that inventory levels are appropriate. Controls such as physical counts, reconciliations, and segregation of duties protect against misappropriation and inefficiencies.
* Key Concept:Internal Controls as a preventive and detective mechanism in asset safeguarding.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Inventory and Other Assets - Inventory Control procedures.
* Rationale for Correct Answer:Strong internal controls - particularly inventory controls - are essential not just to prevent theft, but also to detect errors, reduce waste, and ensure that inventory levels are appropriate. Controls such as physical counts, reconciliations, and segregation of duties protect against misappropriation and inefficiencies.
* Key Concept:Internal Controls as a preventive and detective mechanism in asset safeguarding.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Inventory and Other Assets - Inventory Control procedures.
Which of the following is NOT a standard of generally accepted accounting principles (GAAP)?
Correct Answer: B
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
To detect fraud committed by a health care provider, a fraud examiner should look for which of the following red flags?
Correct Answer: A
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
How many accounts are affected in fraudulent accounting entries and therefore the same number of categories on the financial statement?
Correct Answer: A
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
Which of the following is a common red flag of procurement fraud schemes involving collusion among contractors?
Correct Answer: D
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
The behavior profile of employees who are involved in bribery schemes may include:
Correct Answer: C
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
Jorge, a Certified Fraud Examiner (CFE), is investigating a tip involving an accountant at a bank who allegedly adjusted the bank's general ledger to conceal the theft of funds from a customer's account. If Jorge finds evidence that proves the allegation, which of the following BEST describes the accountant's scheme?
Correct Answer: B
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).
Which of the following must be present for a fraud to exist?
Correct Answer: C
Vote an answer
Explanation: Only visible for PassTestking members. You can sign-up / login (it's free).