Question 1

Which one of the following is NOT a characteristic of a criminal proceeding?

Accepted Answer

A) Deals with offenses against society. 
B) Consequences include restitution and damage payments. 
C) Jury of 12 individuals. 
D) Only one claim may be heard at a time. 
A) Deals with offenses against society. 
B) Consequences include restitution and damage payments. 
C) Jury of 12 individuals. 
D) Only one claim may be heard at a time.

Question 2

Fraud in companies such as WorldCom,Enron,Waste Management,Sunbeam,Rite-Aid,Phar-Mor,Parmalat,and ZZZZBest are examples of:

Accepted Answer

A) Customer fraud. 
B) Investment scams. 
C) Vendor fraud. 
D) Management fraud. 
A) Customer fraud. 
B) Investment scams. 
C) Vendor fraud. 
D) Management fraud.

Question 3

Which of the following is NOT an example of a fraud-fighting career?

Accepted Answer

A) Working for the criminal investigation division of the IRS. 
B) Serving as an expert witness. 
C) Maintaining the security of public records. 
D) Defending an organization being sued in a civil case. 
A) Working for the criminal investigation division of the IRS. 
B) Serving as an expert witness. 
C) Maintaining the security of public records. 
D) Defending an organization being sued in a civil case.

Question 4

Customer fraud includes all of the following EXCEPT:

Accepted Answer

A) Get something for nothing. 
B) Do not pay for goods purchased. 
C) Fraud perpetrated through collusion between buyers and vendors. 
D) Deceive organization into giving them something they should not. 
A) Get something for nothing. 
B) Do not pay for goods purchased. 
C) Fraud perpetrated through collusion between buyers and vendors. 
D) Deceive organization into giving them something they should not.

Question 5

Which of the following is NOT an element of a Ponzi scheme?

Accepted Answer

A) Gaining other's confidence. 
B) Promising abnormally high returns. 
C) Collected money is invested. 
D) Investment principle is partially used to make payments to previous investors. 
A) Gaining other's confidence. 
B) Promising abnormally high returns. 
C) Collected money is invested. 
D) Investment principle is partially used to make payments to previous investors.

Question 6

Who are the primary victims of financial statement fraud?

Accepted Answer

A) Middle management 
B) Organizations that buy goods or services 
C) Analysts 
D) Stockholders 
A) Middle management 
B) Organizations that buy goods or services 
C) Analysts 
D) Stockholders

Question 7

Which of the following statements about criminal and civil cases is correct?

Accepted Answer

A) The purpose of a criminal case is "to right a wrong", the purpose of civil case is to obtain a remedy. 
B) Jury must have 12 people in civil cases but in criminal cases may consist of fewer than 12 persons. 
C) Both criminal cases and civil cases require a fraud perpetrator to make payments for damages. 
D) Only one claim at a time in civil cases however in criminal cases, various claims may be joined in one action. 
A) The purpose of a criminal case is "to right a wrong", the purpose of civil case is to obtain a remedy. 
B) Jury must have 12 people in civil cases but in criminal cases may consist of fewer than 12 persons. 
C) Both criminal cases and civil cases require a fraud perpetrator to make payments for damages. 
D) Only one claim at a time in civil cases however in criminal cases, various claims may be joined in one action.

Question 8

The burden of proof in a criminal case:

Accepted Answer

A) level is beyond a reasonable doubt. 
B) is determined by the majority of the jury members. 
C) level is the preponderance of evidence. 
D) lies with the defendant. 
A) level is beyond a reasonable doubt. 
B) is determined by the majority of the jury members. 
C) level is the preponderance of evidence. 
D) lies with the defendant.

Question 9

The word "con," which means to deceive,comes from the word:

Accepted Answer

A) Contract. 
B) Conserve. 
C) Confuse. 
D) Confidence. 
A) Contract. 
B) Conserve. 
C) Confuse. 
D) Confidence.

Question 10

Management fraud is often referred to as:

Accepted Answer

A) stockholder fraud. 
B) financial statement fraud. 
C) employee fraud. 
D) investment fraud. 
A) stockholder fraud. 
B) financial statement fraud. 
C) employee fraud. 
D) investment fraud.

Question 11

Which of the following is NOT a primary reason for increased size and number of frauds?

Accepted Answer

A) The advent of computers 
B) Complex accounting systems 
C) Increased centralization of businesses 
D) The Internet 
A) The advent of computers 
B) Complex accounting systems 
C) Increased centralization of businesses 
D) The Internet

Question 12

Which of the following would NOT be acceptable as fraud-related experience to satisfy the education requirements to apply for CFE certification?​

Accepted Answer

A) ​auditor (internal or external) 
B) ​investigator for law enforcement agency or private sector 
C) ​experience in the Human Resources department of an organization 
D) ​paralegal for a prosecuting attorney 
A) ​auditor (internal or external) 
B) ​investigator for law enforcement agency or private sector 
C) ​experience in the Human Resources department of an organization 
D) ​paralegal for a prosecuting attorney

Question 13

Generally applicants for CFE certification should have a minimum of a bachelor's degree or equivalent from an institution of higher learning.Alternatively if applicants do not have a bachelor's degree,they may substitute ______ months of fraud-related professional experience for each year of academic study.

Accepted Answer

A) 24 
B) 18 
C) 15 
D) 12 
E) 9 
A) 24 
B) 18 
C) 15 
D) 12 
E) 9

Question 14

Which of the following observations concerning occupational fraud is NOT true?

Accepted Answer

A) It is clandestine. 
B) It is committed for the purpose of direct or indirect financial benefit to the employee. 
C) It usually involves two or more employees. 
D) It costs the employing organization assets, revenues, or reserves. 
A) It is clandestine. 
B) It is committed for the purpose of direct or indirect financial benefit to the employee. 
C) It usually involves two or more employees. 
D) It costs the employing organization assets, revenues, or reserves.

Question 15

Which of the following is the most common type of occupational fraud?

Accepted Answer

A) Financial statement fraud 
B) Mail fraud 
C) Investment fraud 
D) Employee embezzlement 
A) Financial statement fraud 
B) Mail fraud 
C) Investment fraud 
D) Employee embezzlement

Question 16

​Which individual listed is most likely to commit financial statement fraud in order to benefit an organization?

Accepted Answer

A) ​an executive 
B) ​an internal auditor 
C) ​a floor manager (line supervisor) 
D) ​the company Treasurer 
A) ​an executive 
B) ​an internal auditor 
C) ​a floor manager (line supervisor) 
D) ​the company Treasurer

Question 17

Government agencies such as the FBI,FDIC,IRS,or various health agencies publish fraud statistics from time to time.Which of the following observations concerning such statistics is true?

Accepted Answer

A) Generally, their statistics are complete. 
B) Such information is rarely used. 
C) They provide only those statistics related to their jurisdiction. 
D) They usually provide a total picture in the areas for which they have responsibility. 
A) Generally, their statistics are complete. 
B) Such information is rarely used. 
C) They provide only those statistics related to their jurisdiction. 
D) They usually provide a total picture in the areas for which they have responsibility.

Question 18

The most common fraud committed on behalf of an organization is:

Accepted Answer

A) Vendor fraud 
B) Employee embezzlement 
C) Fraudulent financial reporting 
D) Customer fraud 
A) Vendor fraud 
B) Employee embezzlement 
C) Fraudulent financial reporting 
D) Customer fraud

Question 19

How is the confidence element established in a Ponzi scheme?

Accepted Answer

A) By investing in prime bonds. 
B) By issuing notarized certificates. 
C) By paying returns to investors initially. 
D) By returning money to all investors. 
A) By investing in prime bonds. 
B) By issuing notarized certificates. 
C) By paying returns to investors initially. 
D) By returning money to all investors.

Question 20

Telemarketing fraud usually falls into this category.

Accepted Answer

A) Investment scams 
B) Management fraud 
C) Vendor fraud 
D) Embezzlement 
A) Investment scams 
B) Management fraud 
C) Vendor fraud 
D) Embezzlement

Which one of the following is NOT a characteristic of a criminal proceeding?

Fraud in companies such as WorldCom,Enron,Waste Management,Sunbeam,Rite-Aid,Phar-Mor,Parmalat,and ZZZZBest are examples of:

Which of the following is NOT an example of a fraud-fighting career?

Customer fraud includes all of the following EXCEPT:

Which of the following is NOT an element of a Ponzi scheme?

Who are the primary victims of financial statement fraud?

Which of the following statements about criminal and civil cases is correct?

The burden of proof in a criminal case:

The word "con," which means to deceive,comes from the word:

Management fraud is often referred to as:

Which of the following is NOT a primary reason for increased size and number of frauds?

Which of the following would NOT be acceptable as fraud-related experience to satisfy the education requirements to apply for CFE certification?

Which of the following observations concerning occupational fraud is NOT true?

Which of the following is the most common type of occupational fraud?

Which individual listed is most likely to commit financial statement fraud in order to benefit an organization?

Government agencies such as the FBI,FDIC,IRS,or various health agencies publish fraud statistics from time to time.Which of the following observations concerning such statistics is true?

The most common fraud committed on behalf of an organization is:

How is the confidence element established in a Ponzi scheme?

Telemarketing fraud usually falls into this category.

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 1: The Nature of Fraud

Which one of the following is NOT a characteristic of a criminal proceeding?

Fraud in companies such as WorldCom,Enron,Waste Management,Sunbeam,Rite-Aid,Phar-Mor,Parmalat,and ZZZZBest are examples of:

Which of the following is NOT an example of a fraud-fighting career?

Customer fraud includes all of the following EXCEPT:

Which of the following is NOT an element of a Ponzi scheme?

Who are the primary victims of financial statement fraud?

Which of the following statements about criminal and civil cases is correct?

The burden of proof in a criminal case:

The word "con," which means to deceive,comes from the word:

Management fraud is often referred to as:

Which of the following is NOT a primary reason for increased size and number of frauds?

Which of the following would NOT be acceptable as fraud-related experience to satisfy the education requirements to apply for CFE certification?​

Which of the following observations concerning occupational fraud is NOT true?

Which of the following is the most common type of occupational fraud?

​Which individual listed is most likely to commit financial statement fraud in order to benefit an organization?

Government agencies such as the FBI,FDIC,IRS,or various health agencies publish fraud statistics from time to time.Which of the following observations concerning such statistics is true?

The most common fraud committed on behalf of an organization is:

How is the confidence element established in a Ponzi scheme?

Telemarketing fraud usually falls into this category.

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Which of the following would NOT be acceptable as fraud-related experience to satisfy the education requirements to apply for CFE certification?

Which individual listed is most likely to commit financial statement fraud in order to benefit an organization?