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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Which of the following is a method that a fraudster might use to conceal inventory shrinkage?

A) Writing off stolen inventory as scrap
B) All of the above
C) Selling merchandise without recording the sale
D) Falsely increasing the perpetual inventory record

2. Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes, and wages.

A) Equity
B) Balance sheet
C) Expense
D) Financial record

3. A ___________ occurs when an employee, manager, or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.

A) Unauthorized purchase
B) Conflict of interest
C) Financial disclosure
D) Illegal sale

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

A) False
B) True

5. Which of the following measures would be MOST EFFECTIVE in detecting an expense reimbursement scheme?

A) Assess expense reports for expenses that are lower than those of other employees.
B) Review all travel expenses that occurred outside the dates of known employee business trips.
C) Extract all expense accounts with balances that match historical amounts and subject them to further review.
D) Discuss each expense an employee incurred with the Human Resources Department.

Solutions: