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

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

1. Which of the following actions could management take to make a company's profits appear stronger than they are?

A) Understating revenue
B) Fabricating product-return liabilities
C) Overstating expenses
D) Failing to disclose warranty costs

2. Entering a sales total lower than the amount actually paid by the customer is called:

A) Recording a sale procedure
B) Underrings a sale
C) Internal sales audits
D) All of the above

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

A) False
B) True

5. Which of the following is NOT a red flag of register disbursement schemes?

A) Personal checks from cashiers are found in the cash register.
B) Cashiers are authorized to void their own transactions.
C) There are gaps in the transaction numbers on the register log.
D) Voids just over the review limit have been approved by a supervisor.

Solutions: