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"Certified Fraud Examiner -Fraud Schemes and Financial Crimes", also known as CFE-Fraud-Schemes-and-Financial-Crimes exam, is a ACFE Certification. With the complete collection of questions and answers, PrepAwayTest has assembled to take you through 355 Q&As to your CFE-Fraud-Schemes-and-Financial-Crimes Exam preparation. In the CFE-Fraud-Schemes-and-Financial-Crimes exam resources, you will cover every field and category in Certified Fraud Examiner Certification helping to ready you for your successful ACFE Certification.
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| Section | Weight | Objectives |
|---|---|---|
| Identity Theft | 1–5% | - Types and techniques - Prevention and detection |
| Accounting Concepts | 5–10% | - Recording and summarizing transactions - Basic accounting principles - Financial statements structure - Internal control fundamentals |
| Corruption Schemes | 5–10% | - Conflicts of interest - Bribery and kickbacks - Illegal gratuities and extortion |
| Theft of Data and Intellectual Property | 5–10% | - Corporate espionage - Data and IP theft methods - Safeguarding proprietary information |
| Asset Misappropriation – Cash Disbursements | 10–15% | - Billing schemes - Check and payment tampering - Expense reimbursement schemes - Payroll schemes |
| Financial Statement Fraud | 10–15% | - Expense and liability understatements - Revenue and asset overstatements - Timing and disclosure manipulations - Detection and red flags |
| Industry-Specific Financial Crimes | 15–25% | - Financial institution fraud - Real estate and securities fraud - Insurance fraud - Cyber-enabled and cryptocurrency fraud - Healthcare fraud |
| Asset Misappropriation – Cash Receipts | 5–10% | - Cash larceny schemes - Cash skimming schemes - Prevention and detection methods |
| Asset Misappropriation – Non-Cash Assets | 5–10% | - Misuse of assets - Inventory and equipment theft - Concealment techniques |
1. Horizontal analysis can BEST be described as:
A) A technique for analyzing the relationships among items on the financial statement where components are expressed as percentages of a specified base value.
B) A technique for analyzing the percentage change in individual line items on a financial statement from one accounting period to the next accounting period.
C) A technique for comparing the performance of different companies in the same industry for an extended period.
D) A technique for measuring the relationship between any two different financial statement amounts.
2. Which of the following measures would be MOST EFFECTIVE for insurance companies to take to prevent fraud?
A) Inspect insurance policy applications for irregularities, inconsistencies, and missing information before granting insurance coverage.
B) Start a monitoring program to track how policyholders use their claim distributions to determine if they are involved in fraudulent activity.
C) Require one person to conduct all claims processing and underwriting functions in order to maintain control over the process.
D) Discourage any information sharing with other insurance companies or internal divisions to mitigate the risk of fraud.
3. Which of the following is true for red flags associated with fictitious revenues?
A) A significant volume of sales to entities whose substance and ownership is not known.
B) Slow growth or unusual profitability, when not compared to other companies in the same industry.
C) An unusual surge in purchases by a majority of units within a company, or of purchases recorded by corporate headquarters.
D) Unusual growth in the number of days' purchases in receivables.
4. Assets that are long-lived and that differ from property, plant, and equipment that has been purchased outright or acquired under a capital lease are:
A) Forced Assets
B) Intangible Assets
C) None of the above
D) Tangible Assets
5. Which of the following statements is MOST ACCURATE?
A) Government and public sector organizations have more autonomy in how they practice fraud detection than private sector organizations.
B) Government and public sector organizations might need to conduct and respond to fraud risk assessments more frequently than private sector organizations.
C) Government and public sector organizations are required to reprioritize areas of focus for fraud detection less frequently than private sector organizations.
D) Government and public sector organizations can usually accept more fraud risk than private sector organizations because there are no shareholders.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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