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ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Syllabus Topics:

SectionObjectives
Financial Crimes- Money Laundering
  • 1. Integration stage
    • 2. Placement stage
      • 3. Layering stage
        - Corruption Schemes
        • 1. Bribery
          • 2. Kickbacks
            • 3. Conflicts of interest
              - Financial Statement Fraud
              • 1. Asset overstatement
                • 2. Revenue manipulation
                  • 3. Expense understatement
                    Fraud Schemes- Asset Misappropriation Schemes
                    • 1. Inventory and asset theft
                      • 2. Expense reimbursement fraud
                        • 3. Payroll fraud
                          • 4. Cash theft and skimming
                            - Fraudulent Disbursements
                            • 1. Billing schemes
                              • 2. Check tampering
                                • 3. Billing shell companies

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

                                  _________ is defined as a person who works for the victim organization and who is the primary culprit.

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  Employee perpetrator
                                  * Rationale for Correct Answer: In occupational fraud, the primary culprit is generally the employee (insider) who abuses their position of trust. By definition, occupational fraud involves someone inside the organization exploiting their role.
                                  * Key Concept: Employee perpetrator as the primary fraud actor in occupational fraud schemes.
                                  Reference: ACFE Fraud Examiners Manual (2020 International Edition) , Fraud Tree introduction - Occupational Fraud and Abuse Definition .

                                  "Anticipate possible losses and omit potential profits", this results in:

                                  • A. Playing accounting
                                  • B. Bearing accounting
                                  • C. Symmetrical accounting
                                  • D. Asymmetrical accounting
                                  Reveal Solution  Discussion  0

                                  Correct Answer: D  🗳️

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                                  When expenses used to produce income-all of them-should be matched in a consistent manner against that income, this is referred to:

                                  • A. Accrual basis accounting
                                  • B. Equity
                                  • C. Expense
                                  • D. Financial record
                                  Reveal Solution  Discussion  0

                                  Correct Answer: A  🗳️

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                                  Malcolm is a manager at a financial institution. To safeguard the bank and its customers from electronic funds transfer (EFT) fraud, Malcolm is implementing preventive measures. What is one measure Malcolm can take to prevent EFT fraud?

                                  • A. Employ multifactor authentication to verify transfers via electronic bill presentment and payment (EBPP) or person-to-person (P2P) systems.
                                  • B. Send online banking portal PINs, usernames, and passwords in a single communication to ensure the information is not lost or intercepted.
                                  • C. Send electronic communications containing usernames in an unencrypted format to ensure that the intended recipient can access them.
                                  • D. Ensure that the same employee handles both PIN issuance and access device information to limit the number of people accessing this information.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: A  🗳️

                                  Explanation: Only visible for PrepPDF members. You can sign-up / login (it's free).

                                  On the balance sheet, assets must equal the sum of which two components?

                                  • A. Liabilities and owners' equity
                                  • B. Expenses and gross profit
                                  • C. Liabilities and expenses
                                  • D. Revenues and cost of goods sold
                                  Reveal Solution  Discussion  0

                                  Correct Answer: A  🗳️

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