Free Certified Fraud examiner Exam CFE Exam Practice Test

Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?

• Endorse check scheme
• Legitimate check scheme
• Payable check scheme
• Concealed check scheme

By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.

• Journal Entries
• Out-of-balance
• False debits
• None of all

Asset misappropriation schemes were the ''middle children'' of the study; they were more common than fraudulent statements and more costly than corruption.

• True
• False

Physical tampering prevention is a check tampering technique that is used to secure bankassisted controls.

• True
• False

In ___________ scheme, an employee creates false vouchers or submits false invoices to the employer.

• Sale requisition
• Purchase requisition
• Voucher handling
• Cash generating

Which of the following is NOT the reason to bribe employees of the purchaser?

• To ensure receipt of a late bid
• To extend the bid opening date
• To ensure bid-splitting
• To falsify the bid log

Financial statement fraud is committed by:

• Organized criminals
• Mid and lower level employees
• Senior Management
• All of the above

Once the expense account is closed, it becomes a historical item and probably will never be reviewed again.

• True
• False

When employees avoid detection in a refund scheme to keep the sizes of the disbursement low, is referred to:

• Small disbursements
• Very small disbursements
• Simple disbursements
• None of the above

_____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.

• Fraudulent statement
• Corruption
• Asset misappropriations
• None of above