CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Online Practice Questions and Answers

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

Which of the following search is used for unusually high incidence of returns and allowances scheme?

A. Allowances by vendors

B. Disposals of allowances than reorders

C. Returns and allowances

D. None of the above

Which of the following must be present for a fraud to exist?

A. A material false statement

B. Knowledge that the statement was false when it was uttered

C. Reliance on the fast statement by the victim

D. All of the above

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:

A. Registry destroying records

B. Register false voids

C. Fraudulent register occurrences

D. Concealing register disbursement

Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

A. Check disbursement

B. Bank confirmation

C. Bank confirmation

D. Cut-off statements

The most common method of detection in corruption cases is: A. Internal audits

B. Internal controls

C. Tips

D. By accident

A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

A. Accomplice residence

B. Shell company

C. Perpetrator check

D. Cash generator

Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.

A. True B. False

Which of the following is true for Red flags associated with fictitious revenues?

A. Slow growth or usual profitability, when not compared to other companies in the same industry.

B. Usual growth in the number of days purchase in receivables

C. A significant volume of sales to entries whose substance and ownership is not known.

D. A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.

The principle behind full disclosure is:

A. Any material deviation from GAAP must be explained to the reader of the financial information.

B. Any material deviation from SAS must be explained to the writer oh the financial information.

C. Any material deviation from GAAP must be explained to writer of the financial information.

D. None of above