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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 # 51

Baker, an employee of ABC Corporation, was the only employee who had control of the purchasing function for his department. Baker authorized the purchase of supplies that ABC did not need and used these supplies to make improvements to his house. This is an example of what kind of fraud?

Options:

A.  

Pay and return scheme

B.  

Personal purchases with company funds

C.  

Pass-through scheme

D.  

Theft of inventory

Discussion 0
Question # 52

Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes, and wages.

Options:

A.  

Equity

B.  

Balance sheet

C.  

Expense

D.  

Financial record

Discussion 0
Question # 53

According to the recommended methodology for responding to cybersecurity incidents, which of the following activities should occur during the detection and analysis step?

Options:

A.  

Limiting the damage caused by the attack

B.  

Creating an incident response plan

C.  

Restoring control of the systems that were affected

D.  

Identifying all breaches that occurred

Discussion 0
Question # 54

Which of the following measures would likely be MOST EFFECTIVE in helping to prevent fraudulent billing schemes?

Options:

A.  

Using an external vendor to negotiate procurement contracts

B.  

Separating the purchasing and payment functions

C.  

Prohibiting competitive bidding from potential contractors

D.  

Requiring all fraud tips to be reported to employees’ direct supervisors

Discussion 0
Question # 55

Which of the following is NOT a method for stealing inventory and other assets?

Options:

A.  

Larceny schemes

B.  

Asset requisition and transfer

C.  

Purchasing and receiving schemes

D.  

Sales & Equipment handling

Discussion 0
Question # 56

If the assets are intentionally purchased by the company but simply misappropriated by the fraudster, this is referred to as:

Options:

A.  

Inventory larceny scheme

B.  

Asset receiving scheme

C.  

Fraudulent purchase

D.  

Falsify shipping

Discussion 0
Question # 57

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

Options:

A.  

Absconders

B.  

Long-term violators

C.  

Offender types

D.  

None of the above

Discussion 0
Question # 58

The _______________ cost method of pricing would carry an asset’s value on the financial statements as what it would currently cost, considering inflation.

Options:

Discussion 0
Question # 59

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

Options:

A.  

A claim is made soon after an insurance policy commences.

B.  

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

C.  

A burglary loss claim includes small electronic items and jewelry.

D.  

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

Discussion 0
Question # 60

Which of the following methods is NOT used to detect conflicts of interest?

Options:

A.  

Tips & Complaints

B.  

Review of vendor ownership files

C.  

Underbillings of assets

D.  

Interviews with purchasing personnel

Discussion 0
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