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

1. Which of the following is NOT the reason why senior management will overstate business statements?

A) Trigger performance-related compensation
B) Comply with debt covenants
C) Meet personal performance criteria
D) Show a pattern of growth to support sale of a business

2. Which of the following signs is MOST LIKELY to indicate that a third-party vendor or contractor is engaging in a corruption scheme?

A) The third party provides contact information that contains a single address and a telephone number.
B) The third party requests that payment be sent to a different country from where it conducts business.
C) The third party is consistently awarded contracts based on a reputation for providing higher quality services than its competitors.
D) The third party charges lower-than-average prices for the goods and services it offers to customers.

3. ___________ is to allow the owner, investors, creditors, and others with an interest to know the appropriate book worth of the business at a particular date.

A) Income statement
B) Equity
C) Financial record
D) Balance sheet

4. Perceived certainty of detection is directly related to employee theft for respondents in all industry sectors, that is, the stronger the perception that theft would be detected, the more the likelihood that the employee would engage in deviant behavior.

A) True
B) False

5. Which of the following is a common red flag of a bid tailoring scheme?

A) The procuring entity rebids contracts because fewer than the minimum number of bids are received.
B) The procuring entity's request for bid submissions provides clear bid submission information.
C) There are unusually narrow specifications for the type of goods being procured.
D) Numerous bidders respond to the procuring entity's bid requests.

Solutions: