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

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

• Payable cash
• Cash advances
• counterfeit checks
• Payable checks

According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

• Persuasive evidence of an arrangement exists
• Services has been rendered
• Timings have been met
• Collectability is reasonably assured

Which of the following is NOT the method for stealing inventory and other assets?

• Larceny schemes
• Asset requisition and transfer
• Purchasing and receiving schemes
• Sales & Equipment handling

Which of the following is NOT the type of billing scheme?

• Invoicing via shell companies
• Invoicing via non-accomplice companies
• Invoicing via accomplice companies
• Personal purchases with company funds

Conflict of interest cases are more easily prevented than detected.

• True
• False

Larceny is the scheme in which an employee simply takes inventory from the company premises without attempting to conceal it in the books and records.

• True
• False

__________ 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

Assets that are long-lived and that differ from property, plant and equipment hat has been purchased outright or acquired under a capital lease are:

• Tangible Assets
• Intangible Assets
• Forced Assets
• None of above

Which of the following is true for Red flags associated with fictitious revenues?

• Slow growth or usual profitability, when not compared to other companies in the same industry.
• Usual growth in the number of days purchase in receivables
• A significant volume of sales to entries whose substance and ownership is not known.
• A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.

_____________ 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