CFE Exam Training Practice Tests (ACFE Certified Fraud Examiner)]

Question 1

Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

A. Bank confirmation B. Check disbursement C. Bank confirmation D. Cut-off statements

Correct Answer: A

Question 2

Most of the shell company schemes involve the purchase of goods rather than services.

A. True B. False

Correct Answer: B

Question 3

Which of the following search is used for unusually high incidence of returns and allowances scheme?

A. Allowances by vendors B. Disposals of allowances than reorders C. None of the above D. Returns and allowances

Correct Answer: D

Question 4

Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.

A. More then two employees B. Single employee C. None of the above D. Two employees

Correct Answer: B

Question 5

Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

A. Presolicitaion B. Kickbacks C. Bid-rigging D. None of the above

Correct Answer: B

Question 6

Skimming cases can more likely to be detected by:

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

Correct Answer: D

Question 7

According to fraud tree, cash has three following schemes:

A. Skimming, cash larceny and fraudulent disbursements B. Fraud analysis, skimming and cash misappropriations C. Cash larceny, cash distribution and fraudulent disbursements D. Cash distribution, skimming and fraud analysis

Correct Answer: A

Question 8

Which of the following is not the skimming scheme?

A. Unrecorded sales B. Theft of checks through the mail C. Fraud & Cost D. Understand sales and receivables

Correct Answer: C

Question 9

Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

A. Short-term skimming B. Converting stolen checks C. Concealing the fraud D. All of the above

Correct Answer: A

Question 10

According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

A. Income statement and Long-term contracts B. Revenue and corresponding expenses C. Revenue and Income statement D. Capitalized expenses and Liabilities

Correct Answer: B

Question 11

Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

A. True B. False

Correct Answer: A

Question 12

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

A. Red flag revenues B. Financial revenues C. Fictitious or fabricated revenues D. Concealed revenues

Correct Answer: C

Question 13

When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

A. Out-of-balance B. False balance C. None of all D. Forced Balance

Correct Answer: D

Question 14

Persuasive evidence of an arrangement does not exist when:

A. Capitalized expenses and Liabilities will not be up to satisfied level B. No written or verbal agreement exists. C. Timings not meet properly D. Revenue and corresponding expenses doesn't match each other.

Correct Answer: B

ACFE Certified Fraud Examiner - CFE Exam Practice Test