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

When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

1. A. Forced Balance
2. B. Out-of-balance
3. C. False balance
4. D. None of all

Correct Answer: A

______ can be detected by closely examining the documentation submitted with the cash receipts.

1. A. Voided purchases
2. B. Fictitious refunds
3. C. Approved transaction
4. D. None of the above

Correct Answer: B

The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:

1. A. Bogus claims
2. B. Billing scheme
3. C. Reliance billing
4. D. Misappropriate claims

Correct Answer: A

According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:

1. A. Persuasive evidence of an arrangement exists
2. B. Services has been rendered
3. C. Timings have been met
4. D. Collectability is reasonably assured

Correct Answer: C

What can make it easy for an employee to skim sales or receivables?

1. A. Revenue sources and recording procedures
2. B. Poor collection and recording procedures
3. C. Internal audits and recording procedures
4. D. Register manipulations and recording procedures

Correct Answer: B