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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Which of the following options BEST describes horizontal analysis?

A) A means of measuring the performance of a parent company to one of its subsidiaries
B) A means of measuring the relationship between two different financial statement amounts
C) A means of examining the relationship of items on a financial statement by expressing components as percentages of a specified base value
D) A means of examining the percentage change in individual line items on a financial statement from one accounting period to the next

2. Which of the following is a recommended activity that organizations should engage in to protect their proprietary information from threats?

A) Conducting confidential meetings in specially constructed quiet rooms
B) Maximizing data collection to limit the information available during a data breach
C) Enlisting a task force to identify the information security practices of competitors
D) Prohibiting all nonemployees from entering the organization's premises

3. When an employee processes a fictitious refund of goods for cash, which of the following consequences occurs?

A) Merchandise is returned to the company's stockroom.
B) The victim company's reported inventory balance is understated.
C) The amount of cash in the register remains unchanged.
D) The register log matches the amount of cash in the register.

4. Which of the following terms BEST describes a property and casualty insurance scheme that involves filing an insurance claim for destroyed items, such as a boat or expensive equipment, that never actually existed?

A) Inflated theft scheme
B) Paper property scheme
C) Inflated inventory scheme
D) Staged theft scheme

5. By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.

A) Matching
B) Fraudulent statement
C) Misappropriations
D) Conservatism

Solutions: