Free Certified Fraud examiner Exam CFE Exam Practice Test

Which of the following method is NOT used to detect conflicts of interest?

• Tips & Complaints
• Review of vendor ownership files
• Underbillings of assets
• Interviews with purchasing personnel

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

• Equity
• Accrual basis accounting
• Expense
• Financial record

__________ can be defined as conduct detrimental to the organization and to the employee.

• Employee deviance
• Employee theft
• Employee fraud
• All of the above

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

• Until installation and customer testing and acceptance has occurred.
• A written order exists but contains a right of return.
• Both A & B
• Neither A nor B

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

Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

• Check disbursement
• Bank confirmation
• Bank confirmation
• Cut-off statements

According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

• Assets
• Liabilities
• Credentials
• None of above

According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

• Revenue and corresponding expenses
• Revenue and Income statement
• Income statement and Long-term contracts
• Capitalized expenses and Liabilities

The heart of book keeping system is the ___________.

• Asset
• Liability
• Checkbook
• Journal

A ____________ can be very costly for an organization to undertake, both in terms of money and time spent.