CFE-Financial-Transactions-and-Fraud-Schemes Sample Questions Answers

The principle behind full disclosure is:

Which of the following is NOT the example of bribery prevention policies?

How many accounts are affected in fraudulent accounting entries and therefore same number of categories on the financial statement?

______________ can be detected by closely examining the documentation submitted with the cash receipts.

A scheme is classified as a Conflict of interest:

______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.

A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

The essential elements of a ________ are an actual or constructive taking away of the goods or property of another with the without the consent and against the will of the owner and with a felonious intent.

__________ are the amounts which are owned to other entities:

Asset misappropriation schemes were the “middle children” of the study; they were more common than fraudulent statements and more costly than corruption.

Which of the following is NOT the aspect of inventory purchase?

Which of the following search is used for unusually high incidence of returns and allowances scheme?

In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red flags or indicators of occupational fraud and abuse.

Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

Larceny by Fraud or deception means that:

A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?

One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

The behavior profile of employees who are involved in bribery schemes may include:

Which of the following are used in a short term skimming scheme?

__________ can be defined as conduct detrimental to the organization and to the employee.

Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.

According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.

Which of the following is NOT the phase of the bidding process?

Physical tampering prevention is a check tampering technique that is used to secure bank assisted controls.

Which of the following is NOT the type of billing scheme?

Which of the following is the criterion for bid solicitation?

According to fraud tree, cash has three following schemes:

_________ revenues involve the recording sales of goods or services hat did not occur.

The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

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

Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?

Which of the following is NOT the reason why senior management will overstate business statement?

__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

Which of the following must be present for a fraud to exist?

___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.

The most common method of detection in corruption cases is:

According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?

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

When employee committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

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

The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.

Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

According to Hollinger and Clark for Policy development, management must pay attention to:

A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

“Anticipate possible losses and omit potential profits”, this results in:

A shell company scheme in which actual goods or services are sold to the victim company is known as:

Which of the following factors is NOT included in most financial statement schemes?

_________ normally are carried on an organization’s books as expenses because they tend to be consumed by the organization within a year of purchase.

A __________ is a day-by-day, or chronological, record of transactions