Question 1

When employees committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

Accepted Answer

A)  Registry destroying records 
B)  Register false voids 
C)  Fraudulent register occurrences 
D)  Concealing register disbursement

Question 2

Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?

Accepted Answer

A)  Net realizable value 
B)  Going concern 
C)  Cost 
D)  Fair value

Question 3

__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

Accepted Answer

A)  Conflict of interest 
B)  Turnaround sale or flip 
C)  Disclosure 
D)  Resource diversion

Question 4

A scheme is classified as a Conflict of interest:

Accepted Answer

A)  when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice. 
B)  when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales. 
C)  when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase. 
D)  when a dealer must have some kind of dealership interest in the vendor submitting the stock.

Question 5

Another way to eliminate competition in the solicitation phase of the selection process is to:

Accepted Answer

A)  Solicit bid from fictitious suppliers 
B)  Solicit transaction from fictitious vendors 
C)  Solicit bid-splitting from fictitious vendors 
D)  None of the above

Question 6

Which of the following are used in a short-term skimming scheme?

Accepted Answer

A)  Unrecorded sales, understated sales and theft of incoming checks 
B)  Unrecorded sales, understated sales and dual endorsements 
C)  False company accounts, understated sales and theft of incoming checks 
D)  Understated sales, theft of incoming checks and check-for-currency substitutions

Question 7

Which of the following is NOT the reason to bribe employees of the purchaser?

Accepted Answer

A)  To ensure receipt of a late bid 
B)  To extend the bid opening date 
C)  To ensure bid-splitting 
D)  To falsify the bid log

Question 8

What can make it easy for an employee to skim sales or receivables?

Accepted Answer

A)  Revenue sources and recording procedures 
B)  Poor collection and recording procedures 
C)  Internal audits and recording procedures 
D)  Register manipulations and recording procedures

Question 9

_________ assumes the business will go on indefinitely in the future.

Accepted Answer

A)  Materiality 
B)  Going concern 
C)  Cost 
D)  Fair value

Question 10

One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.

Accepted Answer

A) True 
 B)False

Question 11

The amount of cash on hand in a register may be compared to the amount showing in the register tape in order to detect _______.

Accepted Answer

A)  Employee theft 
B)  Recorded sales 
C)  Internal audits 
D)  Occupational frauds

Question 12

According to a survey, in principal perpetrator, males in a majority of cases, accounting for ___ percent of frauds versus ___ percent in which a female was the primary culprit.

Accepted Answer

A)  62 versus 36 
B)  61 versus 39 
C)  62 versus 37 
D)  None of the above

Question 13

__________ are the amounts which are owned to other entities:

Accepted Answer

A)  Supplies 
B)  Expenses 
C)  Assets 
D)  Liabilities

Question 14

By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.

Accepted Answer

A)  Journal Entries 
B)  Out-of-balance 
C)  False debits 
D)  None of all

Question 15

When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

Accepted Answer

A)  Equity 
B)  Accrual basis accounting 
C)  Expense 
D)  Financial record

Question 16

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:

Accepted Answer

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

Question 17

One reason employees might be hesitant to use PO boxes in shell company schemes is that some businesses are specially vary of sending checks to vendors that have street addresses only.

Accepted Answer

A) True 
 B)False

Question 18

Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.

Accepted Answer

A) True 
 B)False

Question 19

The fraudsters' interest lies with an employer other than a company.

Accepted Answer

A) True 
 B)False

Question 20

Collusion or bid-rigging between bidders is called

Accepted Answer

A)  Bribery receipt 
B)  Bid solicitation 
C)  To withdraw low bids 
D)  Contract acceptance

Exam 1: Certified Fraud Examiner

When employees committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?

__________ is required if and when officers, executives or other persons in trusted positions become subjects of a criminal indictment.

A scheme is classified as a Conflict of interest:

Another way to eliminate competition in the solicitation phase of the selection process is to:

Which of the following are used in a short-term skimming scheme?

Which of the following is NOT the reason to bribe employees of the purchaser?

What can make it easy for an employee to skim sales or receivables?

_________ assumes the business will go on indefinitely in the future.

One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.

The amount of cash on hand in a register may be compared to the amount showing in the register tape in order to detect _______.

According to a survey, in principal perpetrator, males in a majority of cases, accounting for _ percent of frauds versus _ percent in which a female was the primary culprit.

__________ are the amounts which are owned to other entities:

By removing a tangible asset from the business (a debit) , the books will be ___________ by the exact amount of the tangible asset misappropriated.

When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

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:

One reason employees might be hesitant to use PO boxes in shell company schemes is that some businesses are specially vary of sending checks to vendors that have street addresses only.

Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.

The fraudsters' interest lies with an employer other than a company.

Collusion or bid-rigging between bidders is called