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

A. Failing to write off obsolete inventory

B. Recording an allowance for sales returns

C. Applying the lower of cost or net realizable value

D. Failing to record bad debt expense

A. Use stolen identities to make a bankruptcy claim.

B. Collude with inventory suppliers to create false invoices.

C. Purchase a considerable amount of goods through credit.

D. Obtain an insurance policy using illicit assets.

A. A falsified tax deduction scheme

B. A tax credit deferral scheme

C. A failure to declare income scheme

D. An excise tax evasion scheme

A. Perpetual inventory

B. Fictitious inventory

C. Shrinking inventory

D. Altered inventory

A. An employee demonstrates a low success rate in markets where competitors are known for engaging in bribery.

B. An employee exhibits an overly friendly social relationship with a third-party contractor.

C. An employee has a history of submitting multiple conflict of interest forms to their Human Resources Department.

D. An employee avoids asserting authority in areas where they are not responsible for decision-making.

A. Skimming, cash larceny, and fraudulent disbursements

B. Cash distribution, skimming, and fraud analysis

C. Cash larceny, cash distribution, and fraudulent disbursements

D. Fraud analysis, skimming, and cash misappropriations

A. Past posting

B. Staged accident

C. Vehicle repair

D. Inflated damages

A. Revenue and Income statement

B. Income statement and Long-term contracts

C. Revenue and corresponding expenses

D. Capitalized expenses and Liabilities

A. An employee buys goods or services from a customer, drops the customer's payment, but makes no record of the purchase.

B. An employee buys goods or services from a stakeholder, drops the stakeholder's payment and makes record of the purchase too.

C. An employee sells goods or services to a customer, collects the customer's payment, but makes no record of the sale.

D. An employee sells goods or services to a stakeholder, collects the stakeholder's payment and makes record of the sale too.

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.

A. False balance

B. Forced Balance

C. Out-of-balance

D. None of all

A. Require a professional appraisal of the book before purchasing it.

B. Ask the dealer to provide a description of the book's physical condition.

C. Ensure that the dealer has a social media presence.

D. Request a list of other rare books the dealer has sold.

A. Inspect insurance policy applications for irregularities, inconsistencies, and missing information before granting insurance coverage.

B. Start a monitoring program to track how policyholders use their claim distributions to determine if they are involved in fraudulent activity.

C. Require one person to conduct all claims processing and underwriting functions in order to maintain control over the process.

D. Discourage any information sharing with other insurance companies or internal divisions to mitigate the risk of fraud.

A. The amount of cash in the register remains unchanged.

B. The register log matches the amount of cash in the register.

C. Merchandise is returned to the company's stockroom.

D. The victim company's reported inventory balance is understated.

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.