PDF Download Free of CFE-Financial-Transactions-and-Fraud-Schemes Valid Practice Test Questions [Q88-Q111]

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PDF Download Free of CFE-Financial-Transactions-and-Fraud-Schemes Valid Practice Test Questions

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QUESTION 88
___________ 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.

Equity

Balance sheet

Income statement

Financial record

QUESTION 89
__________ are the amounts which are owned to other entities:

Supplies

Expenses

Assets

Liabilities

QUESTION 90
How many accounts are affected in fraudulent accounting entries and therefore the same number of categories on the financial statement?

One

At least two

More than two

None of above

QUESTION 91
According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

Persuasive evidence of an arrangement exists

Services has been rendered

Timings have been met

Collectability is reasonably assured

QUESTION 92
Which of the following offender types are people who take the money and run away?

Absconders

Long-term violators

Offender types

None of the above

QUESTION 93
Antonia, a Certified Fraud Examiner (CFE), discovers that a loan applicant misrepresented their creditworthiness and income to qualify for a mortgage on a new house. Which type of loan fraud BEST describes the scheme that Antonia uncovered?

Residential loan fraud

Credit data blocking

Double-pledging collateral

Linked financing

QUESTION 94
Which of the following is a TRUE statement about counterfeit payment cards?

The hologram on payment cards is relatively simple to reproduce.

The production of counterfeit payment cards is too complicated for the use of high-speed printers.

Counterfeit payment cards can be created with blank plastic cards.

All of the above are true statements about counterfeit payment cards.

QUESTION 95
Which of the following is NOT a distinguishing feature of a Ponzi scheme?

Participants attempt to recruit as many new members as possible.

Previous investors are paid with money from new members.

Participants believe that they are making a legitimate investment.

Promoters of Ponzi schemes engage in little or no valid commerce or investments.

QUESTION 96
Which of the following is a red flag that might indicate that someone is attempting to commit insurance fraud?

A claim is made soon after an insurance policy commences.

The insured made one other insurance claim within the past five years.

A burglary loss claim includes small electronic items and jewelry.

A theft claim includes items that were purchased recently and the receipts.

QUESTION 97
Which of the following is a condition that facilitates insider cyberfraud?

Access logs are not reviewed by management.

Production programs are run during the business day.

Access privileges are restricted to assigned job functions.

Separation of duties exists in the data center.

QUESTION 98
Which of the following would NOT be considered a conflict of interest?

Harriet owns a significant amount of stock in a company she regularly buys her employer’s office supplies from, but her employer is unaware of this fact.

Robert works for Muir’s Printing Services on weekdays and Winsted Cafe on weekends, but he does not tell either employer about the other job.

Jennifer is on the board of directors of two companies that compete in the retail market, but she does not tell either company about her role at the other.

Ernest hires his brother, John, to provide vending services to his employer’s lunch areas, but he does not disclose their relationship.

QUESTION 99
Which of the following are the classifications for the Corruption?

Bribery, economic extortion, illegal gratuities and conflicts of interest

Corruption, bribery, economic extortion, conflicts of interest

Overbilling, bribery, bid-ridding and illegal gratuities

economic extortion, bribery, illegal gratuities and corruption

QUESTION 100
Which of the following scenarios describes an electronic funds transfer (EFT) fraud scheme?

A person who has stolen information about another person’s bank account instructs a biller to obtain payment from that account.

A server secretly scans a customer’s credit card information into a small device for fraudulent use at a later time.

An employee of a person-to-person (P2P) provider misrepresents the number of hours they worked to increase the amount of their paycheck.

A credit card is intercepted in the mail by a thief who proceeds to use the card fraudulently.

QUESTION 101
____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Journal Entries

Accounting Cycle

Financial statement

None of all

QUESTION 102
Which of the following is NOT the reason why senior management will overstate business statements?

Comply with debt covenants

Meet personal performance criteria

Trigger performance-related compensation

Show a pattern of growth to support sale of a business

QUESTION 103
Which of the following ratios can be used to assess a company’s ability to meet sudden cash requirements?

Receivable turnover ratio

Asset turnover ratio

Debt-to-equity ratio

Quick ratio

QUESTION 104
Which of the following is a red flag that might indicate that someone is attempting to commit insurance fraud?

A fire loss claim includes numerous personal items and family heirlooms.

The insured made one other insurance claim within the past five years.

A claim is made a short time after a change in policy coverage.

A theft claim includes recently purchased items with their receipts.

QUESTION 105
Financial statement fraud is BEST described as the intentional or accidental misstatement of amounts in the financial statements.

True

False

QUESTION 106
A fraudster creates a fictitious identity by combining a person’s real government identification number with a fabricated name and birthdate. This scheme can BEST be described as:

Synthetic identity theft

Simulated identity theft

Traditional identity theft

Criminal identity theft

QUESTION 107
Larceny by Fraud or deception means that:

Creates or reinforce a false impression

Fails to correct a false impression

Fails to disclose a known lien, adverse claim or other legal impediment

All of the above

QUESTION 108
The most basic skimming scheme occurs when:

An employee sells goods or services to a customer, collects the customer’s payment, but makes no record of the sale.

An employee buys goods or services from a customer, drops the customer’s payment, but makes no record of the purchase.

An employee sells goods or services to a stakeholder, collects the stakeholder’s payment and makes record of the sale too.

An employee buys goods or services from a stakeholder, drops the stakeholder’s payment and makes record of the purchase too.

QUESTION 109
Revenue is recognized when it is:

Realized and Earned

Fictitious and Earned

Realized and Evidenced

All of the above

QUESTION 110
Which of the following is a common red flag of a bid tailoring scheme?

Changes in contract specifications from previous proposals are explained in detail.

The procuring entity rebids contracts because fewer than the minimum number of bids are received.

Numerous bidders respond to the procuring entity’s bid requests.

There are unusually broad specifications for the type of goods being procured.

QUESTION 111
Which of the following would be helpful in detecting a cash larceny scheme?

Having the accounts receivable clerk prepare the bank deposit

Prohibiting employees from performing the duties of an absent employee

Reconciling cash register totals to the amount of cash in the register drawer

Requiring cashiers to perform cash counts of their own cash registers at the end of each shift

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