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

CORRECT TEXT The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

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

_________ revenues involve the recording sales of goods or services hat did not occur.

A. Fictitious or fabricated revenues

B. Financial revenues

C. Red flag revenues

D. Concealed revenues

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

A. Unrecorded sales, understated sales and theft of incoming checks

B. Unrecorded sales, understated sales and dual endorsements

C. False company accounts, understated sales and theft of incoming checks

D. Understated sales, theft of incoming checks and check-for-currency substitutions

Which of the following are the classifications for the Corruption?

A. Bribery, economic extortion, illegal gratuities and conflicts of interest

B. Corruption, bribery, economic extortion, conflicts of interest

C. Overbilling, bribery, bid-ridding and illegal gratuities

D. economic extortion, bribery, illegal gratuities and corruption

According to Hollinger and Clark for Policy development, management must pay attention to:

A. A clear understanding regarding theft behavior

B. Enforcement of sanctions

C. Both A and B

D. Neither A nor B

Which of the following can constitute a bribe, even if the illicit payment is never actually made?

A. Offering a payment

B. Corruption in payment

C. kickback payment

D. Overbilling in payment

Forced reconciliation of the account says:

A. to conceal shrinkage is to alter inventory record so that it matches the physical inventory count.

B. to conceal inventory is to alter shrinkage record so that it matches the physical inventory count.

C. to conceal shrinkage is to change the perpetual inventory record so that it matches the physical inventory count.

D. to conceal write-offs is to change the perpetual inventory record so that it matches the physical inventory count.

Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.

A. True B. False

Maintain the presence of a manager or supervisor near the area of the cash register as a deterrent to theft is a prevention for:

A. Fraudulent statement scheme

B. Asset misappropriation scheme

C. Larceny scheme

D. Register disbursement scheme