CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Online Practice Questions and Answers

CORRECT TEXT _________ is defined as a person who works for the victim organization and who is primary culprit

A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

A. Microline numbering

B. Holographic safety border

C. Embossed pearlescent numbering

D. None of the above

Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

A. True

B. False

Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.

A. Single employee

B. Two employees

C. More then two employees

D. None of the above

In which approach, fraudsters produce whatever financial statements they wish, perhaps using just a typewriter or a personal computer.

A. Organized accounting

B. Playing the accounting

C. Beating accounting

D. Outside accounting system

Accounting records are designed to be kept on subjective rather than objective evidence.

A. True

B. False

In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and

A. Violation

B. Isolation

C. Rationalization

D. None of the above

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

A. Proper documentation, segregation of duties, independent checks and physical safeguards

B. Proper documentation, segregation of duties, independent checks and inventory control

C. Proper documentation, physical padding, independent checks and physical safeguards

D. prenumbered affiliations, segregation of duties, independent checks and physical safeguards

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. Usual growth in the number of days purchase in receivables

C. A significant volume of sales to entries whose substance and ownership is not known.

D. A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.

What is sometimes used to overcome well-designed internal controls of a victim company?

A. Shell company

B. Fraudulent invoices

C. Collusion

D. Rubber stamp supervisors