Pass Your Certified Fraud Examiner CFE-Financial-Transactions-and-Fraud-Schemes Exam on Jul 23, 2023 with 100 Questions [Q41-Q57] : Actual Test Materials : http://blog.actualtests4sure.com

NO.41 A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:

Conflict of interest in sale

Turnaround sale or flip

Unauthorized sale

Written sale of unique assets

NO.42 If an analytical review reveals that a company’s cost of goods sold has increased by a disproportionate amount relative to its sales, and no changes have occurred in the purchase prices, quantities purchased, or quality of products purchased, what does this most likely indicate?

There were excessive sales returns during the period.

The company started recording warranty liabilities.

Inventory has been depleted by theft.

Sales were unusually poor this year compared to last year.

NO.43 Which of the following is the MOST APPROPRIATE technique for detecting a nonconforming goods or services scheme?

Determining if contract costs have exceeded or are expected to exceed the contract value

Comparing the direct and indirect labor account totals from the prior year to the current year

Examining change orders that increase the price of the existing contract

Interviewing procurement personnel about the presence of any red flags

NO.44 Which of the following is an example of a corruption scheme?

A public company omits recurring costs from its financial statements to make the company appear more profitable than it actually is.

A government procurement manager awards a lucrative contract to a vendor in exchange for an offer of future employment.

A warehouse manager receives thirty tablets in a shipment but excludes five from the records and sells them to third parties.

Two data analysts steal confidential algorithms from their workplace and use the stolen data to start a competing business.

NO.45 A ____________ can be very costly for an organization to undertake, both in terms of money and time spent.

NO.46 Which of the following scenarios is an example of an electronic extortion scheme?

A vendor rewards a purchasing employee with tickets for a professional sports team’s game after the employee directs business to the vendor.

An employee receives a payment for directing excess business to a vendor.

A purchasing employee and vendor agree to bill the company for services never rendered.

A politician threatens to shut down a business if it does not pay a bribe.

NO.47 A shell company scheme in which actual goods or services are sold to the victim company is known as:

Maintenance scheme

Allocation scheme

Distribution scheme

Pass-through scheme

NO.48 Which of the following is a common red flag of procurement fraud schemes involving collusion among contractors?

More competitors than usual submit bids on a project or product.

Bid prices rise when a new contractor enters the competition.

The winning bidder does not subcontract any work to a third party.

There is a pattern where the last party to bid wins the contract.

NO.49 ______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.

NO.50 Which sale occurs when the accomplice of the employee-fraudster “buys” merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Whole sale

Fake sale

Fraudster sale

Preliminary sale

NO.51 All of the following methods would be helpful in detecting a skimming scheme EXCEPT:

Comparing register totals to the cash count

Confirming customers’ outstanding account balances

Counting the physical inventory

Examining journal entries for accounts receivable write-offs

NO.52 In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red flags or indicators of occupational fraud and abuse.

81

82

83

84

NO.53 The principal way to detect omitted credits from books of account is through:

Forced Balance

Trend analysis

Expense account

None of all

NO.54 ____________ is a process by which a bookkeeper records all transactions and can adjust the books.

Journal Entries

Accounting Cycle

Financial statement

None of all

NO.55 Physical assets including _________ and ________ are the most commonly misappropriated noncash asset in our study.

Interest & Collusion

Inventory & Equipment

Inventory & Purchase

Sales & Equipment

NO.56 What can make it easy for an employee to skim sales or receivables?

Revenue sources and recording procedures

Poor collection and recording procedures

Internal audits and recording procedures

Register manipulations and recording procedures

NO.57 The most common method of detection in corruption cases is:

Internal audits

Internal controls

Tips

By accident