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

Which of the following are used in a short term skimming scheme?

• Unrecorded sales, understated sales and theft of incoming checks
• Unrecorded sales, understated sales and dual endorsements
• False company accounts, understated sales and theft of incoming checks
• Understated sales, theft of incoming checks and check-for-currency substitutions

The most common method for billing scheme is:

• Register
• Tips
• Accident
• None of the above

One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

• True
• False

The person or persons who have access to __________ are often the targets of unethical vendors seeking an advantage in the process.

• Bid-splitting
• Sealed bids
• General purchasing
• Tailor specifications

__________ inventory and other assets is relatively common way for fraudsters to remove assets from the books before or after they are stolen.

• Altered
• Perpetual
• False shipping slip
• Write-offs

A scheme is classified as a Conflict of interest:

• when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.
• when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.
• when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.
• when a dealer must have some kind of dealership interest in the vendor submitting the stock.

________ decrease assets and expenses and/or increase liabilities and/or equity

• Journal Entries
• Debit
• Credit
• None of all

____________ is a summary of the account balances carried in a ledger.

• Balance sheet
• Income statement
• Financial statement
• General journal

___________ and __________ are used to increase (or decrease) the equity account.

• Journal Entries & Debit
• Journal Entries & transactions
• Journal Entries & Credit
• None of all