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Free Certified Fraud Examiner -Fraud Schemes and Financial Crimes Practice Questions

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Total Questions : 352

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Question # 71

By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.

Options:

A.  

Journal Entries

B.  

Out-of-balance

C.  

False debits

D.  

None of all

Discussion 0
Question # 72

Which of the following signs is a red flag that might indicate an entity is operating a securities business without the proper license or registration?

Options:

A.  

The entity’s website lists a prospectus for each security.

B.  

The entity has a history of regulatory filings.

C.  

The entity has a lack of customer complaints.

D.  

The entity’s promoters have unexplained gaps in their work history.

Discussion 0
Question # 73

Which of the following terms BEST describes a property and casualty insurance scheme that involves filing an insurance claim for destroyed items, such as a boat or expensive equipment, that never actually existed?

Options:

A.  

Staged theft scheme

B.  

Paper property scheme

C.  

Inflated theft scheme

D.  

Inflated inventory scheme

Discussion 0
Question # 74

Which of the following are the classifications for Corruption?

Options:

A.  

Bribery, economic extortion, illegal gratuities, and conflicts of interest

B.  

Corruption, bribery, economic extortion, conflicts of interest

C.  

Overbilling, bribery, bid-rigging, and illegal gratuities

D.  

Economic extortion, bribery, illegal gratuities, and corruption

Discussion 0
Question # 75

Physical assets including _________ and ________ are the most commonly misappropriated noncash assets in our study.

Options:

A.  

Interest & Collusion

B.  

Inventory & Equipment

C.  

Inventory & Purchase

D.  

Sales & Equipment

Discussion 0
Question # 76

Which of the following options is the BEST example of a technical security control that organizations can use to block unauthorized or unverified transmissions?

Options:

A.  

Firewalls

B.  

Application security

C.  

Cipher locks

D.  

Data classification

Discussion 0
Question # 77

Which of the following scenarios is an example of an economic extortion scheme?

Options:

A.  

A contractor rewards a government employee with concert tickets after winning a contract with their agency.

B.  

A driver caught violating the speed limit offers a law enforcement officer payment to avoid receiving a speeding ticket.

C.  

A judge threatens to rule against a defendant during a judicial proceeding unless the defendant pays them money.

D.  

A purchasing employee and vendor agree to bill the employee’s company for services that the vendor did not provide.

Discussion 0
Question # 78

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

Options:

A.  

The hologram on payment cards is relatively simple to reproduce.

B.  

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

C.  

Counterfeit payment cards can be created with blank plastic cards.

D.  

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

Discussion 0
Question # 79

Which of the following measures is a best practice for preventing expense reimbursement schemes?

Options:

A.  

Establish a policy that only requires employees to submit supporting documentation for their expenses if they fall into certain high-risk categories.

B.  

Provide employees with cash advances to limit the amount of funds that could be misappropriated.

C.  

Inform employees that expense reports will be periodically audited to ensure they meet the company’s guidelines.

D.  

Ask employees to submit their expense reports directly to the department that processes reimbursements without manager review.

Discussion 0
Question # 80

_____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.

Options:

A.  

Fraudulent statement

B.  

Corruption

C.  

Asset misappropriations

D.  

None of the above

Discussion 0

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