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CFE-Fraud-Schemes-and-Financial-Crimes Practice Questions

Certified Fraud Examiner -Fraud Schemes and Financial Crimes

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Total Questions : 352

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Question # 11

In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

Options:

A.  

Bid-rigging

B.  

Kickbacks

C.  

Competitive bidding

D.  

Bid solicitation

Discussion 0
Question # 12

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

Options:

A.  

Persuasive evidence of an arrangement exists

B.  

Services have been rendered

C.  

Timings have been met

D.  

Collectability is reasonably assured

Discussion 0
Question # 13

Which of the following is true for red flags associated with fictitious revenues?

Options:

A.  

Slow growth or unusual profitability, when not compared to other companies in the same industry.

B.  

Unusual growth in the number of days’ purchases in receivables.

C.  

A significant volume of sales to entities whose substance and ownership is not known.

D.  

An unusual surge in purchases by a majority of units within a company, or of purchases recorded by corporate headquarters.

Discussion 0
Question # 14

Guillermo has received a grant to study the effectiveness of school lunch programs on students’ mental health. Guillermo’s results are inconclusive, causing him to be concerned that he will lose funding for his project. As a result, Guillermo creates some data points that support his research and show that he is making progress. Guillermo’s actions can BEST be described as:

Options:

A.  

Research misconduct

B.  

Fraudulent concealment

C.  

Fictitious claims fraud

D.  

Inducement fraud

Discussion 0
Question # 15

Which of the following statements regarding measures for detecting a cash larceny scheme is MOST ACCURATE?

Options:

A.  

The individual responsible for the cash receipts function should compare cash receipts journal entries with bank statement deposits.

B.  

Cash receipts listings should be prepared and confirmed after receipts are submitted to the accounts receivable bookkeeper.

C.  

Any journal entries that are made to cash accounts should be reviewed, analyzed, and traced to their source documentation.

D.  

The cashier should be responsible for preparing register count sheets and reconciling them with cash register totals.

Discussion 0
Question # 16

A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:

Options:

A.  

Bid opening

B.  

Fictitious bidding

C.  

Bid pooling

D.  

Bid log

Discussion 0
Question # 17

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

Options:

A.  

The procuring entity's request for bid submissions provides clear bid submission information.

B.  

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

C.  

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

D.  

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

Discussion 0
Question # 18

In accordance with the accounting equation, which of the following actions would conceal the fraudulent removal of a liability from the books?

Options:

A.  

Increasing another liability

B.  

Decreasing owners’ equity

C.  

Increasing an asset

D.  

Creating a fictitious expense

Discussion 0
Question # 19

__________ are the amounts which are owed to other entities:

Options:

A.  

Supplies

B.  

Expenses

C.  

Assets

D.  

Liabilities

Discussion 0
Question # 20

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:

Options:

A.  

Fiduciary Capacity

B.  

Embezzlement

C.  

Conversion

D.  

None of the above

Discussion 0
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