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

A.  

Asset

B.  

Liability

C.  

Checkbook

D.  

Journal

A.  

Net realizable value

B.  

Going concern

C.  

Cost

D.  

Fair value

A.  

Unrecorded sales

B.  

Fraud & Cost

C.  

Theft of checks through the mail

D.  

Understated sales and receivables

A.  

Karen should find out whether the purchasing, receiving, and shipping functions operate independently and whether they are different departments.

B.  

Karen should conduct data analytics tests to identify any employees who have the same phone number.

C.  

Karen should determine whether Magenta Company has received any complaints from customers regarding the company’s sales policies.

D.  

Karen should analyze the relationship between accounts receivable and credit sales transactions.

A.  

Requiring all employees to submit receipts electronically

B.  

Comparing current expenses to budgeted expense amounts

C.  

Requiring employees to explain the specific business purpose of each expense

D.  

Comparing current expenses to historical expenditure amounts

A.  

Cindy receives payment in exchange for allowing an unnecessary surgical procedure to be completed on her that is then billed to her health care program

B.  

Dr. Loomis uses three procedure codes when submitting a claim for a surgery that she performed that is supposed to be billed using one procedure code

C.  

Landon inflates a medical bill that he wants to receive reimbursement for by misrepresenting the amount of the bill

D.  

Dr. Raul advises a patient with a small fracture in her leg to use crutches, but he submits the claim using a code to indicate that he placed a cast on the patient

A.  

Cash larceny scheme

B.  

Unrecorded sales (skimming) scheme

C.  

Kickback scheme

D.  

Understated sales (skimming) scheme

A.  

when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.

B.  

when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.

C.  

when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.

D.  

when a dealer must have some kind of dealership interest in the vendor submitting the stock.

A.  

Money laundering

B.  

Cross-border financing

C.  

Asset trafficking

D.  

Concealment of assets

A.  

Competitive intelligence is considered a legitimate business function.

B.  

Competitive intelligence refers to government-sanctioned activities conducted to collect protected information from a foreign government.

C.  

Competitive intelligence and corporate espionage describe identical practices.

D.  

Competitive intelligence involves the use of illegal, covert means to acquire information for commercial purposes.