Verified CFE-Financial-Transactions-and-Fraud-Schemes dumps Q&As - Pass Guarantee Exam Dumps Test Engine [2023]
CFE-Financial-Transactions-and-Fraud-Schemes dumps and 100 unique questions
NEW QUESTION # 10
Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor's side of the transaction who is not making an illicit payment.
- A. False
- B. True
Answer: A
NEW QUESTION # 11
Which of the following ratios can be used to assess a company's ability to meet sudden cash requirements?
- A. Receivable turnover ratio
- B. Debt-to-equity ratio
- C. Quick ratio
- D. Asset turnover ratio
Answer: D
Explanation:
Explanation/Reference: https://www.investopedia.com/ask/answers/062215/what-are-financial-risk-ratios-and-how-are-they-used-measure-risk.asp
NEW QUESTION # 12
Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?
- A. Proper documentation, physical padding, independent checks and physical safeguards
- B. prenumbered affiliations, segregation of duties, independent checks and physical safeguards
- C. Proper documentation, segregation of duties, independent checks and inventory control
- D. Proper documentation, segregation of duties, independent checks and physical safeguards
Answer: D
NEW QUESTION # 13
Which of the following is a method that might be used to fraudulently overstate the accounts receivable balance?
- A. Overstating inventory
- B. Failing to record depreciation expense
- C. Failing to record bad debt expense
- D. Understating net worth
Answer: A
NEW QUESTION # 14
Which of the following is NOT the phase of the bidding process?
- A. Submission
- B. Postsolicitation
- C. Presolicitation
- D. Solicitation
Answer: B
NEW QUESTION # 15
According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
- A. None of above
- B. Liabilities
- C. Credentials
- D. Assets
Answer: D
NEW QUESTION # 16
Hamed works as an intelligence professional for Iriam intelligence, a competitive intelligence firm. He is tasked with gathering intelligence about Dripcore Inc., the major competitor of Iriam's biggest client. To gather the intelligence, Hamed poses as an applicant for a high-level position with Dripcore and obtains a job interview through which he elicits sensitive information from Dripcore's employee. Hamed's approach is an example of:
- A. Scavenging
- B. Human intelligence
- C. Open-source intelligence
- D. Competitive data analysis
Answer: A
Explanation:
Explanation/Reference: https://www.acfe.com/selfstudy.aspx?zid=2c92a0076a07e3be016a27279abe2776
NEW QUESTION # 17
A particular back surgery contains two basic components (an incision and muscle repair), but it is supposed to be billed using a single procedure code. Heather performs this back surgery on a patient and submits a claim using three codes: one for the full procedure, one for the incision, and one for muscle repair. Which scheme BEST describes Heather's actions?
- A. Upcoding
- B. Over-utilization
- C. Unnecessary services
- D. Unbundling
Answer: A
Explanation:
Explanation/Reference: https://www.acfeinsights.com/acfe-insights/2018/12/12/health-care-fraud-5-common-billing-schemes
NEW QUESTION # 18
Neil, a Certified Fraud Examiner (CFE), discovers that a borrower used the same property as a security, or guarantee, to obtain multiple loans from different financial institutions before they were recorded on his credit report. Which type of loan fraud BEST describes the scheme Neil uncovered?
- A. Single-family housing loan fraud
- B. Double-pledging collateral
- C. Linked financing
- D. Reciprocal loan arrangements
Answer: B
NEW QUESTION # 19
Which of the following is a TRUE statement regarding pyramid schemes?
- A. Illegal pyramids are designed to pay off later investors, not the earliest ones
- B. Illegal pyramid scheme participants make their money chiefly by recruiting new members
- C. It is illegal to design an organization to have a pyramidal structure for any purpose
- D. None of the above
Answer: B
Explanation:
Explanation/Reference: https://www.investopedia.com/terms/p/pyramidscheme.asp
NEW QUESTION # 20
If a construction developer submitted a draw request to a bank, which of the following would be most indicative of loan fraud?
- A. Missing inspection reports
- B. Evidence of change orders
- C. Including lien releases from subcontractors
- D. Lack of documented expenses from other similar contracts
Answer: A
NEW QUESTION # 21
Which of the following are the classifications for the Corruption?
- A. economic extortion, bribery, illegal gratuities and corruption
- B. Corruption, bribery, economic extortion, conflicts of interest
- C. Bribery, economic extortion, illegal gratuities and conflicts of interest
- D. Overbilling, bribery, bid-ridding and illegal gratuities
Answer: C
NEW QUESTION # 22
When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:
- A. Accrual basis accounting
- B. Financial record
- C. Equity
- D. Expense
Answer: A
NEW QUESTION # 23
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.
- A. Fiduciary
- B. Larceny
- C. Abuse
- D. None of the above
Answer: B
NEW QUESTION # 24
Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.
- A. False
- B. True
Answer: B
NEW QUESTION # 25
Which of the following factors is NOT included in most financial statement schemes?
- A. Persuasive Evidence
- B. Improper asset valuations
- C. Concealed liabilities and expenses
- D. Fictitious revenues
Answer: A
NEW QUESTION # 26
________ increase assets and expenses and/or decrease liabilities and/or equity
- A. Debit
- B. Credit
- C. None of all
- D. Journal Entries
Answer: A
NEW QUESTION # 27
Revenue is recognized when it is:
- A. Realized and Evidenced
- B. Realized and Earned
- C. Fictitious and Earned
- D. All of the above
Answer: B
NEW QUESTION # 28
All of the following are basic methods used to prove corrupt payments in corruption schemes EXCEPT:
- A. Reviewing the subject's tax records
- B. Identifying and tracing payments through audit steps
- C. Turning an inside witness
- D. Secretly infiltrating ongoing transactions
Answer: D
Explanation:
Explanation/Reference: https://www.acfe.com/uploadedFiles/ACFE_Website/Content/review/bc/01-Introduction.pdf
NEW QUESTION # 29
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. False
- B. True
Answer: A
NEW QUESTION # 30
Which of the following statements regarding financial statement disclosures is FALSE?
- A. There is nothing inherently wrong with related-party transactions, as long as they are fully disclosed.
- B. Events occurring after the close of the reporting period that could have a significant effect on the company's financial position must be disclosed.
- C. Management must disclose potential losses from ongoing litigation if the related liability is highly likely.
- D. All information relating to the company must be disclosed in the financial statements, regardless of materiality.
Answer: D
NEW QUESTION # 31
Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.
- A. False
- B. True
Answer: B
NEW QUESTION # 32
A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:
- A. Embossed pearlescent numbering
- B. Microline numbering
- C. None of the above
- D. Holographic safety border
Answer: D
NEW QUESTION # 33
Green was a salesperson whose job required frequent travel. When Green went on a trip with her family that was not business related, she saved the receipts from her flight, hotel, and restaurant expenses. She turned in these receipts to her manager along with an expense report that described the expenses as business related.
Green's company reimbursed her for the expenses. This is an example of what type of expense reimbursement scheme?
- A. A mischaracterized expense scheme
- B. A fictitious expense scheme
- C. An overstated expense scheme
- D. A multiple reimbursement scheme
Answer: A
Explanation:
Explanation/Reference: https://www.bakertilly.com/insights/expense-reimbursement-schemes
NEW QUESTION # 34
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