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

CORRECT TEXT One of the simplest ways to justify unacceptable conduct and avoid guilt feelings is to invent a good reason for ________.

_________ revenues involve the recording sales of goods or services hat did not occur.

A. Fictitious or fabricated revenues

B. Financial revenues

C. Red flag revenues

D. Concealed revenues

__________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

A. Corruption

B. Diverting business to vendors

C. Bribery

D. Lacking approval authority

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?

A. Endorse check scheme

B. Legitimate check scheme

C. Payable check scheme

D. Concealed check scheme

____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

A. False shipping slip

B. False packing slip

C. Fraudulent inventory slip

D. False credit slip

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

A. Equity

B. Accrual basis accounting

C. Expense

D. Financial record

A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:

A. Microline numbering

B. Holographic safety border

C. Embossed pearlescent numbering

D. None of the above

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

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

A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

A. Fiduciary Capacity

B. Embezzlement

C. Conversion

D. None of the above

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.

A. True

B. False