[UPDATED] ACFE CFE-Financial-Transactions-and-Fraud-Schemes Certification Exam Questions
Quickly and Easily Pass ACFE Exam with CFE-Financial-Transactions-and-Fraud-Schemes real Dumps
ACFE CFE-Financial-Transactions-and-Fraud-Schemes exam is a certification offered by the Association of Certified Fraud Examiners (ACFE) for professionals who want to specialize in financial transactions and fraud schemes. Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam certification is designed to equip candidates with the skills and knowledge required to detect, prevent, and investigate financial fraud. CFE-Financial-Transactions-and-Fraud-Schemes exam covers topics such as financial statement fraud, bribery and corruption, asset misappropriation, money laundering, and other types of financial crime.
NEW QUESTION # 33
Organizations can employ ___________ to provide protection for computing resources by increasing security policies and awareness, conducting security audits and tests, and developing an incident response plan.
- A. Administrative security controls
- B. Technical security controls
- C. Physical access controls
- D. Logical access controls
Answer: A
Explanation:
Explanation/Reference: https://purplesec.us/security-controls/#:~:text=Administrative%20security%20controls%20refer%20to,with%20the%20organization's%20security%20goals
NEW QUESTION # 34
A scheme is classified as a Conflict of interest:
- A. when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.
- B. when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.
- C. when a dealer must have some kind of dealership interest in the vendor submitting the stock.
- D. when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.
Answer: D
NEW QUESTION # 35
All of the following are common ways that a procuring employee might engage in a bid manipulation scheme EXCEPT:
- A. Altering bids
- B. Extending bid opening dates without justification
- C. Charging for costs that are not allowable
- D. Opening bids prematurely
Answer: C
NEW QUESTION # 36
All of the following methods are useful in the detection of cash larceny schemes EXCEPT:
- A. Performing surprise cash counts
- B. Having the accounts receivable clerk prepare the bank deposit
- C. Analyzing journal entries made to cash accounts
- D. Reconciling cash register totals to the amount of cash in the drawer
Answer: C
Explanation:
Explanation/Reference: https://www.acfe.com/uploadedFiles/Shared_Content/Products/Self-Study_CPE/intro-to-fraud-exam-2011-extract.pdf
NEW QUESTION # 37
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 log
- B. Bid opening
- C. Bid pooling
- D. Fictitious Bidding
Answer: C
NEW QUESTION # 38
The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.
Answer:
Explanation:
Price-level adjusted historical cost
NEW QUESTION # 39
Which of the following statements describes a best practice for preventing contract and procurement fraud?
- A. Companies should restrict the monitoring of their procurement activities to once a year to ensure comparability over time.
- B. Companies should permit the person who maintains the vendor master file to have the authority to approve invoices for payment.
- C. Companies should not conduct background checks on vendors until after they are added to the vendor master file.
- D. Companies should have vendor-monitoring procedures that are based on the red flags of the vendor schemes that pose the greatest risk.
Answer: D
Explanation:
Explanation/Reference: https://www.fraudconference.com/31/post-cpf.aspx
NEW QUESTION # 40
All of the following items appear on the balance sheet EXCEPT:
- A. Assets
- B. Cost of goods sold
- C. Liabilities
- D. Retained earnings
Answer: D
Explanation:
Explanation/Reference: https://www.investopedia.com/articles/fundamental-analysis/10/creative-accounting-balance-sheet.asp
NEW QUESTION # 41
A voucher is:
- A. a mammogram that includes the purchase order that was send to the purchaser, the purchaser invoice listing the benefits and quantity of items purchased, and the internal receiving reports that verify the purchased items have been sold.
- B. a figure that includes the sale order that was send to the dealer, the vendor invoice listing the cost and quantity of items sold, and the internal receiving reports that verify the purchased items have been delivered.
- C. a report that includes the purchase order that was send to the vendor, the vendor invoice listing the quality and quantity of items purchased, and the external receiving reports that verify the items have been sold.
- D. a file that includes the purchase order that was send to the vendor, the vendor invoice listing the cost and quantity of items purchased, and the internal receiving reports that verify the purchased items have been delivered.
Answer: D
NEW QUESTION # 42
When employee committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:
- A. Registry destroying records
- B. Fraudulent register occurrences
- C. Register false voids
- D. Concealing register disbursement
Answer: D
NEW QUESTION # 43
Financial statement fraud can BEST be describes as:
- A. The intentional or accidental misstatement of amounts in the financial statements
- B. The deliberate misrepresentation of a company's financial condition
- C. The misstatement or omission of financial information for the purpose of personal gain
- D. The intentional understatement of assets or overstatement of liabilities on the balance sheet
Answer: D
Explanation:
Explanation/Reference: https://www.investopedia.com/articles/financial-theory/11/detecting-financial-fraud.asp
NEW QUESTION # 44
A journal in which all sales made on credit or cash are listed is:
- A. General journal
- B. Accounts receivable journal
- C. Disbursement journal
- D. Accounts payable journal
Answer: B
NEW QUESTION # 45
The seller's price to the buyer is not fixed or determinable when:
- A. Payment terms are not extended for a substantial period.
- B. The transaction includes an option to exchange the product for others.
- C. When the price is not contingent on some future events
- D. A service or membership fee is not subject predictable cancellation during the contract period.
Answer: B
NEW QUESTION # 46
Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, are called:
- A. Expenses
- B. Financial record
- C. Depreciations
- D. Accruals
Answer: D
NEW QUESTION # 47
Which of the following can constitute a bribe, even if the illicit payment is never actually made?
- A. kickback payment
- B. Overbilling in payment
- C. Offering a payment
- D. Corruption in payment
Answer: C
NEW QUESTION # 48
Which of the following is FALSE concerning methods corporate spies generally use to steal information from other organizations?
- A. Spies often gain direct access to a target company by obtaining employment as a security officer or a member of the janitorial crew.
- B. Spies often create counterfeit employee badges to gain entrance into a target company.
- C. When spies use technical surveillance to obtain information about target companies, they gather documentary evidence that can be found through open sources.
- D. When spies use social engineering, they manipulate people into handing over secret information through the use of trickery, persuasion, threats, or cajolery.
Answer: B
NEW QUESTION # 49
Which of the following is NOT the example of bribery prevention policies?
- A. Resource diversions
- B. Discounts
- C. Reporting gifts
- D. Business meetings
Answer: A
NEW QUESTION # 50
Green was a salesperson whose job required frequent travel. When Green went on a trip with her family that was not business related, she saved the receipts from her flight, hotel, and restaurant expenses. She turned in these receipts to her manager along with an expense report that described the expenses as business related.
Green's company reimbursed her for the expenses. This is an example of what type of expense reimbursement scheme?
- A. An overstated expense scheme
- B. A fictitious expense scheme
- C. A multiple reimbursement scheme
- D. A mischaracterized expense scheme
Answer: D
Explanation:
Explanation/Reference: https://www.bakertilly.com/insights/expense-reimbursement-schemes
NEW QUESTION # 51
The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.
- A. False
- B. True
Answer: B
NEW QUESTION # 52
People commit financial statement fraud to:
- A. Maintain personal income
- B. Stand outside the accounting system
- C. Conceal false business performances
- D. Preserve personal status/control
Answer: D
NEW QUESTION # 53
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 # 54
Which of the following is true for Red flags associated with fictitious revenues?
- A. Slow growth or usual profitability, when not compared to other companies in the same industry.
- B. A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.
- C. A significant volume of sales to entries whose substance and ownership is not known.
- D. Usual growth in the number of days purchase in receivables
Answer: C
NEW QUESTION # 55
Green, an employee of ABC Corporation, formed a company called Acme Consulting. He opened a bank account in Acme's name and used his home computer to create invoices from Acme for "consulting services." In reality, Acme does not provide any services at all. It is a company in name only. Green submitted the invoices from Acme Consulting to his employer, ABC Corporation. When ABC made payment on the false invoices, Green collected and deposited them. What type of scheme has Green committed?
- A. A cash larceny scheme
- B. A pass-through scheme
- C. A pay and return scheme
- D. A shell company scheme
Answer: D
Explanation:
Explanation/Reference: https://www.millerkaplan.com/is-your-business-inadvertently-paying-a-shell-company
NEW QUESTION # 56
Another way to eliminate competition in the solicitation phase of the selection process is to:
- A. None of the above
- B. Solicit bid-splitting from fictitious vendors
- C. Solicit transaction from fictitious vendors
- D. Solicit bid from fictitious suppliers
Answer: D
NEW QUESTION # 57
June, a 76-year-old woman, receives a phone call from a man impersonating one of her relatives. He claims to have a lot of debt and asks her to secretly send him money so that the rest of the family will not find out. June has MOST LIKELY been victimized by which of the following schemes?
- A. Affinity fraud
- B. Grandparent scheme
- C. Pretexting fraud
- D. Missing-heir scheme
Answer: C
Explanation:
Explanation/Reference: https://www.acfe.com/article.aspx?id=504
NEW QUESTION # 58
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Passing the CFE-FTFS exam is a significant achievement in the field of fraud investigation. It demonstrates that the candidate has a thorough understanding of financial transactions and fraud schemes and has the skills to investigate and prevent fraud. Employers often look for candidates with the CFE-FTFS designation when hiring fraud examiners, making it a valuable asset to have in the industry.
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