CFE-Financial-Transactions-and-Fraud-Schemes Free Practice Test

Bid-rigging scheme occurs when:

1. A. an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.
2. B. an employee does not assist a vendor in winning a contract through the competitive bidding process.
3. C. an employee once assists a vendor in winning a contract through a single competitive bidding process.
4. D. an employee once assists a vendor in winning a contract through a single competitive bidding process.

Correct Answer: A

What is sometimes used to overcome well-designed internal controls of a victim company?

1. A. Shell company
2. B. Fraudulent invoices
3. C. Collusion
4. D. Rubber stamp supervisors

Correct Answer: C

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.

1. A. Fraudulent statement
2. B. Misappropriations
3. C. Conservatism
4. D. Matching

Correct Answer: C

Forced reconciliation of the account says:

1. A. to conceal shrinkage is to alter inventory record so that it matches the physical inventory count.
2. B. to conceal inventory is to alter shrinkage record so that it matches the physical inventory count.
3. C. to conceal shrinkage is to change the perpetual inventory record so that it matches the physical inventory count.
4. D. to conceal write-offs is to change the perpetual inventory record so that it matches the physical inventory count.

Correct Answer: C

According to fraud tree, cash has three following schemes:

1. A. Skimming, cash larceny and fraudulent disbursements
2. B. Fraud analysis, skimming and cash misappropriations
3. C. Cash larceny, cash distribution and fraudulent disbursements
4. D. Cash distribution, skimming and fraud analysis

Correct Answer: A