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

1. According to Hollinger and Clark, for policy development, management must pay attention to:

A) Both A & B
B) Neither A nor B
C) A clear understanding regarding theft behavior
D) Enforcement of sanctions

2. The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others, is called:

A) Conflict of interest
B) Bribery
C) Overbilling
D) Corruption

3. Fraud in financial statements generally takes the form of _______ assets or revenue and _______ liabilities and expenses.

A) Understated; understated
B) Overstated; overstated
C) Understated; overstated
D) Overstated; understated

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

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

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

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

Solutions: