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

A.  

Creates or reinforces a false impression

B.  

Fails to correct a false impression

C.  

Fails to disclose a known lien, adverse claim, or other legal impediment

D.  

All of the above

A.  

New account identity theft

B.  

Traditional identity theft

C.  

Synthetic identity theft

D.  

Criminal identity theft

A.  

The financial reporting practices that a publicly traded company must follow are determined by the company's jurisdiction.

B.  

All publicly traded companies are required to adopt either U.S. GAAP or IFRS as their accounting framework.

C.  

Organizations that conduct business internationally must adopt IFRS as their accounting framework for financial reporting.

D.  

U.S. GAAP is a principle-based accounting framework, and IFRS is a rules-based accounting framework.

A.  

Interviewing complaining contractors and unsuccessful bidders about the presence of red flags

B.  

Reviewing correspondence and contract files for indications of noncompliance regarding specifications

C.  

Comparing the direct and indirect labor account totals from the prior year to the current year

D.  

Determining if the costs of the contract have exceeded or are expected to exceed the value of the contract

A.  

Baiting is the practice of manipulating an individual into releasing confidential information by impersonating their bank or a financial institution with which they do business.

B.  

Pharming involves searching for sensitive personal or business information on used computers that have been purchased from a third-party reseller.

C.  

Shoulder surfing involves gathering personal information by listening to a conversation or observing an individual entering a PIN into a device.

D.  

Phishing is the practice of searching through discarded credit card receipts, bank statements, and other identifying documentation for personal and business information.

A.  

Illegal gratuity scheme

B.  

Economic extortion scheme

C.  

Diversion scheme

D.  

Kickback scheme

A.  

Staged accident

B.  

Inflated damages

C.  

Past posting

D.  

Vehicle repair

A.  

Submitting token bids that are not genuine attempts to win the contract

B.  

Seeking work in all available areas and portions of a shared market

C.  

Making bids on fake contracts to give the appearance of genuine competition

D.  

Invoicing for work that was not performed on joint projects

A.  

The third party provides contact information that contains a single address and a telephone number.

B.  

The third party requests that payment be sent to a different country from where it conducts business.

C.  

The third party is consistently awarded contracts based on a reputation for providing higher quality services than its competitors.

D.  

The third party charges lower-than-average prices for the goods and services it offers to customers.

A.  

Making inquiries to the relevant Administration of Taxation

B.  

Secretly infiltrating ongoing transactions

C.  

Using an inside witness

D.  

Identifying and tracing payments through audit steps