CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Online Practice Questions and Answers

The behavior profile of employees who are involved in bribery schemes may include:

A. Gambling habit

B. Extravagant lifestyle

C. Drug and/or alcohol addiction

D. All of the above

Skimming is:

A. The removal of cash from a victim entity prior to its entry in an accounting system.

B. The addition of cash from a victim entity prior to its entry in an accounting system.

C. The removal of cash from a victim entity after its entry in an accounting system.

D. None of above

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

A running count that records how much inventory should be on hand is referred to:

A. Altered inventory

B. Perpetual inventory

C. Shrinking inventory

D. Fictitious inventory

According to Hollinger and Clark for Policy development, management must pay attention to:

A. A clear understanding regarding theft behavior

B. Enforcement of sanctions

C. Both A and B

D. Neither A nor B

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

A. Single employee

B. Two employees

C. More then two employees

D. None of the above

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.

A. True

B. False

A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

A. Accomplice residence

B. Shell company

C. Perpetrator check

D. Cash generator

Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.

A. True

B. False

Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

A. True

B. False