Certified Fraud Examiner v5.0

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Exam contains 186 questions

In which phase of competitive bidding process, fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought?

  • A. Need recognition
  • B. Solicitation
  • C. False specification
  • D. Submission


Answer : B

A journal in which all sales made on credit or cash are listed is:

  • A. Disbursement journal
  • B. Accounts receivable journal
  • C. Accounts payable journal
  • D. General journal


Answer : B

____________ is a process by which a bookkeeper records all transactions and can adjust the books.

  • A. Journal Entries
  • B. Accounting Cycle
  • C. Financial statement
  • D. None of all


Answer : A

The forms that allow noncash assets to be moved from one location in a company to another can be used to facilitate the misappropriation of those assets are called:

  • A. Inventory usages
  • B. Fake sales
  • C. Asset requisition
  • D. All of the above


Answer : C

___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.



Answer : C

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



Answer : C

False billing scheme states that:

  • A. employees do not cause their company to purchase merchandise that the company does not need.
  • B. employees cause their company to sale merchandise that the company does not need.
  • C. employees do not cause their company to sale merchandise that the company does not need.
  • D. employees cause their company to purchase merchandise that the company does not need


Answer : D

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

  • A. Payable cash
  • B. Cash advances
  • C. counterfeit checks
  • D. Payable checks


Answer : B

__________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

  • A. Corruption
  • B. Diverting business to vendors
  • C. Bribery
  • D. Lacking approval authority


Answer : C

When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

  • A. Presolicitation scheme
  • B. Need recognition scheme
  • C. False sole-source scheme
  • D. Submission scheme


Answer : B

Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?

  • A. Endorse check scheme
  • B. Legitimate check scheme
  • C. Payable check scheme
  • D. Concealed check scheme


Answer : D

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.


Answer : C

Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:

  • A. Account analysis
  • B. Bank reconciliation
  • C. Check disbursement controls
  • D. Check tampering


Answer : C

Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

  • A. True
  • B. False


Answer : B

A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

  • A. Fiduciary Capacity
  • B. Embezzlement
  • C. Conversion
  • D. None of the above


Answer : A

Page:    1 / 13   
Exam contains 186 questions

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