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

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

________ increase assets and expenses and/or decrease liabilities and/or equity

A. Journal Entries

B. Debit

C. Credit

D. None of all

The scheme in which the same vendor is receiving favorable treatment van be found in purchases by vendor searches.

A. True

B. False

Which of the following must be present for a fraud to exist?

A. A material false statement

B. Knowledge that the statement was false when it was uttered

C. Reliance on the fast statement by the victim

D. All of the above

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

A. Asymmetrical accounting

B. Symmetrical accounting

C. Playing accounting

D. Bearing accounting

In which approach, fraudsters produce whatever financial statements they wish, perhaps using just a typewriter or a personal computer.

A. Organized accounting

B. Playing the accounting

C. Beating accounting

D. Outside accounting system

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 scheme is classified as a Conflict of interest:

A. when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.

B. when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.

C. when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.

D. when a dealer must have some kind of dealership interest in the vendor submitting the stock.

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

Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

A. True

B. False