CFE-Financial-Transactions-and-Fraud-Schemes Exam Training Practice Tests (ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes)]

Question 1

Conflict of interest cases are more easily prevented than detected.

A. True B. False

Correct Answer: A

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Question 2

All the following are basic methods used to prove corrupt payments in corruption schemes EXCEPT:

A. Identifying and tracing payments through audit steps B. Secretly infiltrating ongoing transactions C. Using an inside witness D. Making inquiries to the relevant Administration of Taxation

Correct Answer: B

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Question 3

Ada uses her mother's government identification card to impersonate her mother and obtain health care for herself under her mother's insurance benefits. Which type of patient health care fraud scheme is Ada MOST LIKELY committing?

A. Multiple claims fraud B. Fictitious claims fraud C. Third-party fraud D. Misrepresentations fraud

Correct Answer: C

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Question 4

Pilar had to purchase computer equipment for ABC Corporation, her employer. Pilar created a shell company, used the shell company to purchase used computer equipment, and then resold that equipment to ABC Corporation at an increased price. This is an example of a:

A. Cash larceny scheme B. Pass-through scheme C. Pay and return scheme D. Need recognition scheme

Correct Answer: B

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Question 5

Mario performs surgery on a patient to replace a bone. The surgery should be billed using one code, but Mario bills the surgery using three codes (one for the entire surgery, one for the removal of the bone, and another for the insertion of the artificial bone), which increases the cost. Which of the following BEST describes Mario's scheme?

A. Unbundling B. Fictitious services C. False diagnosis D. Upcoding

Correct Answer: A

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Question 6

Skimming cases can more likely be detected by:

A. Occupational frauds B. Internal controls C. Internal audits D. Accidents

Correct Answer: D

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Question 7

__________ can be defined as conduct detrimental to the organization and to the employee.

A. Employee theft B. Employee deviance C. All of the above D. Employee fraud

Correct Answer: B

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Question 8

Which counts sometimes can give rise to inventory theft detection?

A. Concealment inventory counts B. Physical inventory counts C. Perpetual inventory counts D. None of the above

Correct Answer: B

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Question 9

____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

A. False shipping slip B. False credit slip C. Fraudulent inventory slip D. False packing slip

Correct Answer: D

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Question 10

Which of the following is the MOST APPROPRIATE technique for detecting a cost mischarging scheme?

A. Inspecting questioned goods or materials by examining packaging, appearance, and description B. Examining any change orders submitted by a contractor that add new items C. Reviewing the inspection and testing reports of questioned goods or materials D. Comparing the direct and indirect labor account totals from the prior year to the current year

Correct Answer: D

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Question 11

The scheme in which the same vendor is receiving favorable treatment can be found in purchases by vendor searches.

A. True B. False

Correct Answer: A

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Question 12

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

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

Correct Answer: C

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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes - CFE-Financial-Transactions-and-Fraud-Schemes Exam Practice Test