CFE-FINANCIAL-TRANSACTIONS-AND-FRAUD-SCHEMES Online Practice Questions and Answers

Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

A. True

B. False

A special scheme in which employees know their employer is seeking to purchase a certain asset and take advantage of the situation by purchasing the asset themselves is:

A. Conflict of interest in sale

B. Turnaround sale or flip

C. Unauthorized sale

D. Written sale of unique assets

The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:

A. Absolute value

B. Fair value

C. Cost value

D. material value

Which of the following is the criterion for bid solicitation?

A. Containing false statements

B. Allowing the purchaser to discuss possible employment with the contractor

C. To withdraw low bids

D. To falsify the bid log

When employee committing the fraud removes cash from the register and also the item allegedly being returned is debited back into the inventory, this refers to:

A. Registry destroying records

B. Register false voids

C. Fraudulent register occurrences

D. Concealing register disbursement

Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?

A. Net realizable value

B. Going concern

C. Cost

D. Fair value

In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

A. Bid-rigging

B. Kickbacks

C. Competitive bidding

D. Bid solicitation

Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes and wages.

A. Equity

B. Balance sheet

C. Expense

D. Financial record

Employees steal an incoming payment and then place the incoming funds in an interest bearing account for:

A. Converting stolen checks

B. Concealing the fraud

C. Short-term skimming

D. All of the above

Which of the following is NOT the aspect of inventory purchase?

A. Inventory purchases purposely increase in year 1 only to be liquidated in year 2.

B. inventory for the year 2 will be much greater than year 1.

C. Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales.

D. might be some fraud scheme in inventory.