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CFE Practice Questions

Question # 1

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



B.

False




Question # 2

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

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



A.

Unrecorded sales, understated sales and theft of incoming checks




Question # 3

Which of the following method is NOT used to detect conflicts of interest?

A.

Tips & Complaints

B.

Review of vendor ownership files

C.

Underbillings of assets

D.

Interviews with purchasing personnel



C.

Underbillings of assets




Question # 4

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



D.

All of the above




Question # 5

Larceny by Fraud or deception means that:

A.

Creates or reinforce a false impression

B.

Fails to correct a false impression

C.

Fails to disclose a known lien, adverse claim or other legal impediment

D.

All of the above



D.

All of the above




Question # 6

Physical assets including _________ and ________ are the most commonly
misappropriated noncash asset in our study.

A.

Interest & Collusion

B.

Inventory & Equipment

C.

Inventory & Purchase

D.

Sales & Equipment



B.

Inventory & Equipment




Question # 7

If the assets are intentionally purchased by the company but simply misappropriated by the
fraudster, this is referring to as:

A.

Inventory larceny scheme

B.

B. Asset receiving scheme

C.

Fraudulent purchase

D.

Falsify shipping



A.

Inventory larceny scheme




Question # 8

Depreciation is especially applicable when companies try to overvalue their assets and net
worth; the lower their depreciation expense, the higher the company’s profits.

A.

True

B.

False



A.

True




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ACFE CFE Exam Dumps

Exam Name: Certified Fraud Examiner
Certification Name: Certified Fraud Examiner

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  • Total Questions: 186
  • Last Updation Date: 17-Feb-2025

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