CFE Certified Fraud Examiner Questions and Answers

A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:

The most basic skimming scheme occurs when:

One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.

People commit financial statement fraud to:

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

Which of the following is NOT the type of billing scheme?

A running count that records how much inventory should be on hand is referred to:

___________ and __________ are used to increase (or decrease) the equity account.

Which of the following are used in a short term skimming scheme?

Which of the following can constitute a bribe, even if the illicit payment is never actually made?

The difference between assets and liabilities is called:

Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company’s profits.

A ___________ occurs when an employee, manager or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.

The amount of cash on hand in a register may be compared to the amount showing in the register tape in order to detect _______.

Most of the shell company schemes involve the purchase of goods rather than services.

The seller’s price to the buyer is not fixed or determinable when:

__________ inventory and other assets is relatively common way for fraudsters to remove assets from the books before or after they are stolen.

Persuasive evidence of an arrangement does not exist when:

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

___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Which of the following is NOT the example of bribery prevention policies?

The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.

Conflict of interest cases are more easily prevented than detected.

The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

A voucher is:

Which check tampering red flag may indicate employees have embezzled cash and charged the embezzlement to expense accounts?

In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

The heart of book keeping system is the ___________.

__________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

What is sometimes used to overcome well-designed internal controls of a victim company?

The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.

In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through:

The seller’s price to the buyer is not fixed or determinable when:

Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.

Which of the following is NOT the phase of the bidding process?

Revenue is recognized when it is:

When employee committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?

__________ can be defined as conduct detrimental to the organization and to the employee.

______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.

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:

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

Assets that are long-lived and that differ from property, plant and equipment hat has been purchased outright or acquired under a capital lease are:

Which of the following is the criterion for bid solicitation?

Physical tampering prevention is a check tampering technique that is used to secure bankassisted controls.

The person or persons who have access to __________ are often the targets of unethical vendors seeking an advantage in the process.

A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through: