CFE-Financial-Transactions-and-Fraud-Schemes Free Exam Study Guide! (Updated 100 Questions)
CFE-Financial-Transactions-and-Fraud-Schemes Dumps for Certified Fraud Examiner Certified Exam Questions and Answer
ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam Syllabus Topics:
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NEW QUESTION 21
Which of the following statements is TRUE with regard to the income statement?
- A. Net profit is the difference between total sales and the cost of goods sold.
- B. A company's cash balance is usually the first line item listed.
- C. Gross revenue is the total amount of sales before deductions are applied.
- D. Gross profit is equal to revenues less operating expenses.
Answer: A
Explanation:
Explanation/Reference: https://www.zoho.com/books/guides/what-is-an-income-statement.html#:~:text=The%20income%20statement%20shows%20a,on%20a%20good%20financial%20footing
NEW QUESTION 22
Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?
- A. Voided checks
- B. Duplicate checks
- C. Payable checks
- D. Missing checks
Answer: D
NEW QUESTION 23
Physical assets including _________ and ________ are the most commonly misappropriated noncash asset in our study.
- A. Sales & Equipment
- B. Inventory & Purchase
- C. Interest & Collusion
- D. Inventory & Equipment
Answer: D
NEW QUESTION 24
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
Answer: A
NEW QUESTION 25
Which of the following is an example of a corruption scheme?
- A. A warehouse manager receives thirty tablets in a shipment but excludes five from the records and sells them to third parties.
- B. Two data analysts steal confidential algorithms from their workplace and use the stolen data to start a competing business.
- C. A government procurement manager awards a lucrative contract to a vendor in exchange for an offer of future employment.
- D. A public company omits recurring costs from its financial statements to make the company appear more profitable than it actually is.
Answer: C
Explanation:
Explanation/Reference: https://www.acfe.com/risk-assessment-m13.aspx
NEW QUESTION 26
Physical tampering prevention is a check tampering technique that is used to secure bankassisted controls.
- A. True
- B. False
Answer: B
NEW QUESTION 27
Which of the following statements regarding financial statement disclosures is FALSE?
- A. Events occurring after the close of the reporting period that could have a significant effect on the company's financial position must be disclosed.
- B. All information relating to the company must be disclosed in the financial statements, regardless of materiality.
- C. Management must disclose potential losses from ongoing litigation if the related liability is highly likely.
- D. There is nothing inherently wrong with related-party transactions, as long as they are fully disclosed.
Answer: B
NEW QUESTION 28
All of the following items appear on the balance sheet EXCEPT:
- A. Retained earnings
- B. Liabilities
- C. Cost of goods sold
- D. Assets
Answer: A
Explanation:
Explanation/Reference: https://www.investopedia.com/articles/fundamental-analysis/10/creative-accounting-balance-sheet.asp
NEW QUESTION 29
Tram is a branch manager at a financial institution. She is responsible for putting several preventive measures into effect to safeguard the bank and its customers from electronic funds transfer (EFT) fraud. Which of the following is a measure Tram should take to prevent EFT fraud?
- A. Track the use of an access device for the next several days if a customer reports that it has been lost or stolen.
- B. Make the same employee responsible for both the issuance of PINs and access devices.
- C. Mail PINs and other associated account information together to reduce their chances of being lost in the email.
- D. Send a welcome letter to new customers to determine if the address submitted on the account application is valid.
Answer: B
NEW QUESTION 30
By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.
- A. None of all
- B. False debits
- C. Out-of-balance
- D. Journal Entries
Answer: C
NEW QUESTION 31
_____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.
- A. Asset misappropriations
- B. Corruption
- C. None of above
- D. Fraudulent statement
Answer: D
NEW QUESTION 32
Which of the following is NOT standard of generally accepted accounting principles?
- A. Quality control
- B. Full disclosure
- C. Conservatism
- D. Cost
Answer: A
NEW QUESTION 33
Which of the following is an insurance fraud detection tool that uses computer-generated reports to compare payments going to the same location and identify funds fraudulently sent to brokers?
- A. Electronic confirmations
- B. Payroll reports
- C. Vendor master lists
- D. Address similarity reports
Answer: A
NEW QUESTION 34
Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.
- A. Two employees
- B. Single employee
- C. None of the above
- D. More then two employees
Answer: B
NEW QUESTION 35
To keep the accounting equation in balance, which of the following actions will need to be taken if someone wants to conceal the fraudulent removal of a liability from the books?
- A. Decreasing a different liability
- B. Decreasing an asset
- C. Decreasing owners' equity
- D. Creating a fictitious expense
Answer: D
NEW QUESTION 36
Which of the following is not the skimming scheme?
- A. Theft of checks through the mail
- B. Fraud & Cost
- C. Unrecorded sales
- D. Understand sales and receivables
Answer: B
NEW QUESTION 37
When situational pressures and perceived opportunities are low and personal integrity is high, occupational fraud is much more likely to occur than when the opposite is true.
- A. True
- B. False
Answer: B
NEW QUESTION 38
The fraudsters' interest lies with an employer other than a company.
- A. True
- B. False
Answer: B
NEW QUESTION 39
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