CFE-Financial-Transactions-and-Fraud-Schemes by ACFE Actual Free Exam Questions And Answers

Question 1

Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor's side of the transaction who is not making an illicit payment.

A. False

B. True

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Correct Answer: A Vote an answer

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Question 2

The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others, is called:

A. Bribery

B. Corruption

C. Conflict of interest

D. Overbilling

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Correct Answer: B Vote an answer

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Question 3

Which of the following is NOT one of the information security goals that should be achieved to secure an e- commerce system for users and account holders?

A. Availability of data

B. Penetrability of data

C. Confidentiality of data

D. Integrity of data

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Correct Answer: B Vote an answer

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Question 4

Cynthia receives a fraudulent text message that appears to be from her credit card company. The message claims that the company has detected suspicious card transactions and provides a link for her to click to sign into her account for more information. Cynthia is MOST LIKELY being targeted by which of the following types of social engineering schemes?

A. Vishing

B. Pharming

C. Catfishing

D. Smishing

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Correct Answer: D Vote an answer

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Question 5

A scheme is classified as a Conflict of Interest:

A. when a dealer must have some kind of dealership interest in the vendor submitting the stock.

B. when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.

C. when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.

D. when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.

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Correct Answer: C Vote an answer

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Question 6

When expenses used to produce income-all of them-should be matched in a consistent manner against that income, this is referred to:

A. Accrual basis accounting

B. Expense

C. Financial record

D. Equity

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Correct Answer: A Vote an answer

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Question 7

Which of the following statements is MOST ACCURATE regarding financial reporting practices and accounting frameworks, such as U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS)?

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

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

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

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

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Correct Answer: C Vote an answer

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Question 8

A typical issue involving materiality and fraud would be:

A. Fraudulent statement

B. Quality control

C. Misappropriations

D. Civil lawsuit

Discussion 0

Correct Answer: A Vote an answer

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Question 9

Delivery has not occurred or services have not been rendered when:

A. Until installation and customer testing and acceptance has occurred.

B. A written order exists but contains a right of return.

C. Both A & B

D. Neither A nor B

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Correct Answer: C Vote an answer

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Question 10

Physical assets including _________ and ________ are the most commonly misappropriated noncash assets in our study.

A. Interest & Collusion

B. Inventory & Purchase

C. Sales & Equipment

D. Inventory & Equipment

Discussion 0

Correct Answer: D Vote an answer

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Question 11

Which of the following is a method of identity theft prevention that is recommended for individuals?

A. Only use email to send personal information when contacting reputable organizations.

B. Use biometric authentication when it is available.

C. Install security updates and patches for personal computers annually.

D. Do not reuse passwords for more than two accounts.

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Correct Answer: B Vote an answer

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Question 12

Which of the following situations describes a red flag that might be indicative of loan fraud?

A. A loan file contains missing documents that are later found in another file.

B. A change order is submitted at the same time as a draw request.

C. The number of change orders for a small project continues to increase.

D. There is low turnover in a real estate developer's personnel.

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Correct Answer: B Vote an answer

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Question 13

Which of the following is an insurance fraud detection tool used for identifying funds fraudulently sent to fictitious payees by using computer-generated reports to compare payments sent to the same location?

A. Electronic confirmations

B. Duplicate payment lists

C. Exception reports

D. Address similarity reports

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Correct Answer: D Vote an answer

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Question 14

Which of the following scenarios is the MOST ACCURATE example of insurer health care fraud?

A. After negotiating discounts with its medical providers, the insurance company provides the negotiated rate to its consumers instead of the original amount.

B. While acting as an intermediary for a government health care program, the insurance company verifies provider claims before billing the government for them.

C. Upon identifying that a claimant has provided incomplete information, the insurance company refuses to pay a claim.

D. To obtain regulatory approval for increasing its rates, the insurance company submits inflated cost data for review.

Discussion 0

Correct Answer: D Vote an answer

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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes - CFE-Financial-Transactions-and-Fraud-Schemes Exam Practice Test

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