Question 1

The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT the example of bribery prevention policies?

Accepted Answer

A)  Reporting gifts 
B)  Discounts 
C)  Business meetings 
D)  Resource diversions

Question 3

Which of the following are the classifications for the Corruption?

Accepted Answer

A)  Bribery, economic extortion, illegal gratuities and conflicts of interest 
B)  Corruption, bribery, economic extortion, conflicts of interest 
C)  Overbilling, bribery, bid-ridding and illegal gratuities 
D)  economic extortion, bribery, illegal gratuities and corruption

Question 4

Forced reconciliation of the account says:

Accepted Answer

A)  to conceal shrinkage is to alter inventory record so that it matches the physical inventory count. 
B)  to conceal inventory is to alter shrinkage record so that it matches the physical inventory count. 
C)  to conceal shrinkage is to change the perpetual inventory record so that it matches the physical inventory count. 
D)  to conceal write-offs is to change the perpetual inventory record so that it matches the physical inventory count.

Question 5

The principle behind full disclosure is:

Accepted Answer

A)  Any material deviation from GAAP must be explained to the reader of the financial information. 
B)  Any material deviation from SAS must be explained to the writer oh the financial information. 
C)  Any material deviation from GAAP must be explained to writer of the financial information. 
D)  None of above

Question 6

Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor's side of the transaction who is not making an illicit payment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT the aspect of inventory purchase?

Accepted Answer

A)  Inventory purchases purposely increase in year 1 only to be liquidated in year 2. 
B)  inventory for the year 2 will be much greater than year 1. 
C)  Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales. 
D)  might be some fraud scheme in inventory.

Question 8

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:

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

Accepted Answer

A)  Deceive 
B)  Delude 
C)  Mislead 
D)  Beguile

Question 11

Inventory shrinkage is the unaccounted-for reduction in the company's inventory that does not results from theft.

Accepted Answer

A) True 
 B)False

Question 12

Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?

Accepted Answer

A)  Endorse check scheme 
B)  Legitimate check scheme 
C)  Payable check scheme 
D)  Concealed check scheme

Question 13

Which counts sometimes can give rise to inventory theft detection?

Accepted Answer

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

Question 14

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

Accepted Answer

A)  Proper documentation, segregation of duties, independent checks and physical safeguards 
B)  Proper documentation, segregation of duties, independent checks and inventory control 
C)  Proper documentation, physical padding, independent checks and physical safeguards 
D)  prenumbered affiliations, segregation of duties, independent checks and physical safeguards

Question 15

SIMULATION The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

Accepted Answer

The answer of SIMULATION The _______________ cost method of pricing...

Question 16

A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:

Accepted Answer

A)  Bid opening 
B)  Fictitious Bidding 
C)  Bid pooling 
D)  Bid log

Question 17

Larceny is the scheme in which an employee simply takes inventory from the company premises without attempting to conceal it in the books and records.

Accepted Answer

A) True 
 B)False

Question 18

The most basic skimming scheme occurs when:

Accepted Answer

A)  An employee sells goods or services to a customer, collects the customer's payment, but makes no record of the sale. 
B)  An employee buy goods or services from a customer, drop the customer's payment, but makes no record of the purchase. 
C)  An employee sells goods or services to a stakeholder, collects the stakeholder's payment and makes record of the sale too. 
D)  An employee buy goods or services from a stakeholder, drop the stakeholder's payment and makes record of the purchase too.

Question 19

"Anticipate possible losses and omit potential profits", this results in:

Accepted Answer

A)  Asymmetrical accounting 
B)  Symmetrical accounting 
C)  Playing accounting 
D)  Bearing accounting

Question 20

In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

Accepted Answer

A)  Bid-rigging 
B)  Kickbacks 
C)  Competitive bidding 
D)  Bid solicitation

Exam 1: Certified Fraud Examiner

The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.

Which of the following is NOT the example of bribery prevention policies?

Which of the following are the classifications for the Corruption?

Forced reconciliation of the account says:

The principle behind full disclosure is:

Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor's side of the transaction who is not making an illicit payment.

Which of the following is NOT the aspect of inventory purchase?

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:

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

________, one of the Fraud synonyms implies that deceiving so thoroughly as to obscure the truth:

Inventory shrinkage is the unaccounted-for reduction in the company's inventory that does not results from theft.

Which are check tempering frauds in which an employee prepares a fraudulent check and submits it usually along with legitimate checks to an authorized maker who signs it without a proper review?

Which counts sometimes can give rise to inventory theft detection?

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

SIMULATION The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

A process by which several bidders conspire to split contracts up and ensure that each gets a certain amount of work is called:

Larceny is the scheme in which an employee simply takes inventory from the company premises without attempting to conceal it in the books and records.

The most basic skimming scheme occurs when:

"Anticipate possible losses and omit potential profits", this results in:

In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?