ACFE CFE-Fraud-Schemes-and-Financial-Crimes

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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Skimming is:

A) The removal of cash from a victim entity prior to its entry in an accounting system.
B) The removal of cash from a victim entity after its entry in an accounting system.
C) None of above
D) The addition of cash from a victim entity prior to its entry in an accounting system.

2. People commit financial statement fraud to:

A) Conceal false business performances
B) Maintain personal income
C) Stand outside the accounting system
D) Preserve personal status/control

3. Which of the following is a red flag that might indicate the existence of a need recognition scheme?

A) The purchasing entity has an unusually large list of backup suppliers available.
B) The purchasing entity's materials are not being ordered at the optimal reorder point.
C) The purchasing entity does not have high requirements for stock and inventory levels.
D) The purchasing entity identifies a need that can be met by various suppliers.

4. Which of the following is TRUE regarding accrual-basis accounting?

A) Revenues are generally recognized when goods are delivered to a customer.
B) The accrual-basis method focuses on tracking a company's current cash flow.
C) Expenses are recorded in the accounting system when they are paid.
D) Accrual-basis accounting is simpler to use than cash-basis accounting.

5. Security audits and tests, incident response plans, and separation of duties are all examples of which of the following types of cybersecurity controls?

A) Administrative security controls
B) Physical access controls
C) Logical access controls
D) Technical security controls

Solutions: