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Free ACFE CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Sample Questions
Question 1
Which of the following is true for Red flags associated with fictitious revenues?
A. Slow growth or usual profitability, when not compared to other companies in the sameindustry.
B. Usual growth in the number of days purchase in receivables
C. A significant volume of sales to entries whose substance and ownership is not known.
D. A usual surge in purchase by a majority of units within a company, or of purchaserecorded by corporate headquarters.
Answer: C
Question 2
Which of the following is the amount of money that would be realized upon the sale of theasset at some point in the future, less the costs associated with owing, operating andselling it?
A. Net realizable value
B. Going concern
C. Cost
D. Fair value
Answer: A
Question 3
Accounting records are designed to be kept on subjective rather than objective evidence.
A. True
B. False
Answer: B
Question 4
Accounting records are designed to be kept on subjective rather than objective evidence.
A. True
B. False
Answer: B
Question 5
What can make it easy for an employee to skim sales or receivables?
A. Revenue sources and recording procedures
B. Poor collection and recording procedures
C. Internal audits and recording procedures
D. Register manipulations and recording procedures
Answer: B
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