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ACFE CFE Certification Exam is designed to test the candidates on their knowledge and expertise in various areas of fraud examination, including fraud prevention and deterrence, financial transactions and fraud schemes, investigation techniques, legal elements of fraud, and fraud reporting. CFE exam is divided into four sections, and the candidates have to pass all sections to be awarded the certification. CFE exam is computer-based and consists of 500 multiple-choice questions, which the candidates have to complete in a four-hour time limit. The ACFE CFE Certification Exam is considered as one of the most challenging exams in the industry, and passing it requires dedication, hard work, and extensive preparation.
NEW QUESTION # 21
In ___________ scheme, an employee creates false vouchers or submits false invoices to the employer.
- A. Sale requisition
- B. Cash generating
- C. Purchase requisition
- D. Voucher handling
Answer: B
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 22
The prime targets for skimming schemes which are hard to monitor and predict such as late fees and parking fees, are:
- A. Internal audits
- B. Recorded sales
- C. Revenue sources
- D. Register manipulations
Answer: C
NEW QUESTION # 23
Which of the following is NOT the reason to bribe employees of the purchaser?
- A. To extend the bid opening date
- B. To ensure receipt of a late bid
- C. To falsify the bid log
- D. To ensure bid-splitting
Answer: D
Explanation:
Section: Fraud Prevention and Deterrence
Explanation/Reference:
NEW QUESTION # 24
Which of the following is NOT the reason why senior management will overstate business statement?
- A. Show a pattern of growth to support sale of a business
- B. Trigger performance related compensation
- C. Meet personal performance criteria
- D. Comply with debit covenants
Answer: D
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 25
One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.
- A. False
- B. True
Answer: B
Explanation:
Section: Investigation
NEW QUESTION # 26
Which counts sometimes can give rise to inventory theft detection?
- A. Physical inventory counts
- B. Perpetual inventory counts
- C. Concealment inventory counts
- D. None of the above
Answer: A
NEW QUESTION # 27
Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?
- A. Proper documentation, segregation of duties, independent checks and physical safeguards
- B. Proper documentation, segregation of duties, independent checks and inventory control
- C. Proper documentation, physical padding, independent checks and physical safeguards
- D. prenumbered affiliations, segregation of duties, independent checks and physical safeguards
Answer: A
NEW QUESTION # 28
__________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.
- A. Corruption
- B. Diverting business to vendors
- C. Bribery
- D. Lacking approval authority
Answer: C
NEW QUESTION # 29
"Anticipate possible losses and omit potential profits", this results in:
- A. Symmetrical accounting
- B. Asymmetrical accounting
- C. Bearing accounting
- D. Playing accounting
Answer: B
NEW QUESTION # 30
Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.
- A. False
- B. True
Answer: B
NEW QUESTION # 31
When situational pressures and perceived opportunities are low and personal integrity is high, occupational fraud is much more likely to occur than when the opposite is true.
- A. True
- B. False
Answer: B
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 32
Which of the following factors is NOT included in most financial statement schemes?
- A. Improper asset valuations
- B. Concealed liabilities and expenses
- C. Persuasive Evidence
- D. Fictitious revenues
Answer: C
NEW QUESTION # 33
A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:
- A. Bid opening
- B. Fictitious Bidding
- C. Bid pooling
- D. Bid log
Answer: C
NEW QUESTION # 34
Which of the following search is used for unusually high incidence of returns and allowances scheme?
- A. Allowances by vendors
- B. None of the above
- C. Disposals of allowances than reorders
- D. Returns and allowances
Answer: D
Explanation:
Section: Investigation
NEW QUESTION # 35
A variation between the physical inventory and the perpetual inventory totals is called:
- A. Altered inventory
- B. Shrinkage
- C. Write-offs
- D. Account receivable
Answer: B
NEW QUESTION # 36
Which of the following is true for Red flags associated with fictitious revenues?
- A. A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.
- B. A significant volume of sales to entries whose substance and ownership is not known.
- C. Slow growth or usual profitability, when not compared to other companies in the same industry.
- D. Usual growth in the number of days purchase in receivables
Answer: B
NEW QUESTION # 37
The most common method for billing scheme is:
- A. Accident
- B. Tips
- C. None of the above
- D. Register
Answer: B
NEW QUESTION # 38
A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:
- A. Written sale of unique assets
- B. Turnaround sale or flip
- C. Unauthorized sale
- D. Conflict of interest in sale
Answer: B
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 39
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