CFE-Financial-Transactions-and-Fraud-Schemes PDF Pass Leader, CFE-Financial-Transactions-and-Fraud-Schemes Latest Real Test [Q35-Q50]

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CFE-Financial-Transactions-and-Fraud-Schemes PDF Pass Leader, CFE-Financial-Transactions-and-Fraud-Schemes Latest Real Test

Valid CFE-Financial-Transactions-and-Fraud-Schemes Test Answers & CFE-Financial-Transactions-and-Fraud-Schemes Exam PDF

The CFE-Financial-Transactions-and-Fraud-Schemes Certification Exam is an essential certification for professionals who wish to specialize in detecting and investigating financial fraud and fraudulent schemes. By obtaining this certification, professionals can enhance their skills and knowledge in this area, which can lead to better job opportunities and increased earning potential.

The CFE-Financial-Transactions-and-Fraud-Schemes Exam is designed for individuals who are interested in pursuing a career in fraud prevention, detection, and investigation. Certified Fraud Examiner – Financial Transactions and Fraud Schemes Exam certification exam covers various topics related to financial transactions and fraud schemes, including money laundering, bribery, corruption, embezzlement, and financial statement fraud. CFE-Financial-Transactions-and-Fraud-Schemes exam also tests the candidate’s understanding of fraud prevention, risk assessment, and internal controls. By passing CFE-Financial-Transactions-and-Fraud-Schemes exam, candidates demonstrate that they have the necessary skills and knowledge to effectively prevent and detect financial fraud, making them highly sought after by employers in various industries.

NEW QUESTION 35
Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes and wages.

Equity

Balance sheet

Expense

Financial record

NEW QUESTION 36
A tangible asset is one which is:

capable of being perceived

capable of being appraised

Both A & B

Neither A nor B

NEW QUESTION 37
Which of the following is a red flag that might indicate the existence of a need recognition scheme?

The purchasing entity’s materials are being ordered at the optimal reorder point.

The purchasing entity has a large list of backup suppliers.

The purchasing entity has unusually high requirements for stock and inventory levels.

The purchasing entity has few surplus items written off as scrap.

Explanation/Reference: https://www.fraudconference.com/uploadedFiles/Fraud_Conference/Content/Course-Materials/presentations/23rd/ppt/post-05-Collusion-Between-Contractors-and-Employees.pdf

NEW QUESTION 38
Which of the following is FALSE concerning methods that corporate spies generally use to steal information from other organizations?

Spies often create counterfeit employee badges to gain entry into a target company.

Spies often gain direct access to a target company by obtaining employment as a security officer or a member of the maintenance staff.

Spies primarily use social engineering to search for confidential information on employee desks or workstations at the target company.

Spies use technical surveillance to obtain nondocumentary information about target companies that cannot be found through open sources.

NEW QUESTION 39
What type of fraud scheme would MOST LIKELY be revealed by comparing a company’s personnel records with its payroll records to identify duplicate addresses and government identification numbers?

A fraudulent commissions scheme

A falsified hours and salary scheme

An expense reimbursement scheme

A ghost employee scheme

NEW QUESTION 40
The principal way to detect omitted credits from books of account is through:

Forced Balance

Trend analysis

Expense account

None of all

Detailed Explanation:
* Rationale for Correct Answer:Trend analysis is one of the most effective ways to detect omitted credits. By analyzing patterns in revenue, expenses, or balances over time, discrepancies such as missing credits become apparent. Forensic examiners rely on comparative financial analysis to identify anomalies that suggest manipulation.
* Analysis of Incorrect Options:
* A. Forced Balance – Describes concealment, not detection.
* C. Expense account – Accounts can be manipulated but are not detection methods.
* D. None of all – Incorrect, since trend analysis is correct.
* Key Concept:Analytical procedures (trend analysis) in fraud detection.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Fraud Examination Techniques – Analytical Procedures.

NEW QUESTION 41
According to the recommended methodology for responding to cybersecurity incidents, which of the following activities should occur during the detection and analysis step?

Limiting the damage caused by the attack

Creating an incident response plan

Restoring control of the systems that were affected

Identifying all breaches that occurred

Detailed Explanation:
* Rationale for Correct Answer: In the detection and analysis phase of cybersecurity incident response, the focus is on identifying the scope of the incident, including all breaches, compromised systems, and the method of attack. Containment, eradication, and recovery occur in later steps. Thus, identifying all breaches is the correct activity for this step.
* Analysis of Incorrect Options:
* A. Limiting damage – This occurs in the containment phase.
* B. Creating an incident response plan – This is part of the preparation phase.
* C. Restoring control of affected systems – This occurs during eradication and recovery.
* Key Concept: Incident response methodology: preparation # detection/analysis # containment # eradication # recovery.
Reference: ACFE Manual, Fraud Prevention and Deterrence – Cyberfraud Risk and Response.

NEW QUESTION 42
A variation between the physical inventory and the perpetual inventory totals is called:

Altered inventory

Account receivable

Shrinkage

Write-offs

NEW QUESTION 43
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?

Bid-rigging

Kickbacks

Competitive bidding

Bid solicitation

Detailed Explanation:
* Rationale for Correct Answer:In a legitimate competitive bidding process, all bidders must be treated equally, with the same access to information, terms, and conditions. This ensures fairness and prevents procurement fraud.
* Analysis of Incorrect Options:
* A. Bid-rigging – The manipulation of competitive bidding, not the fair process.
* B. Kickbacks – Involve secret payments, not equal bidding.
* D. Bid solicitation – The stage of inviting bids, not the equal treatment requirement.
* Key Concept:Competitive bidding – foundation of fairness in procurement.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Corruption – Procurement and Competitive Bidding Principles.

NEW QUESTION 44
______________ is required not only for theft, but for procedures to detect errors, avoid waste, and ensure a proper amount of inventory is maintained.

Internal control (Inventory Control)
* Rationale for Correct Answer:Strong internal controls – particularly inventory controls – are essential not just to prevent theft, but also to detect errors, reduce waste, and ensure that inventory levels are appropriate. Controls such as physical counts, reconciliations, and segregation of duties protect against misappropriation and inefficiencies.
* Key Concept:Internal Controls as a preventive and detective mechanism in asset safeguarding.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Inventory and Other Assets – Inventory Control procedures.

NEW QUESTION 45
Skimming cases can more likely be detected by:

Internal audits

Accidents

Internal controls

Occupational frauds

Detailed Explanation:
* Rationale for Correct Answer:Skimming is difficult to detect because the stolen cash is never recorded (“off-book”). Therefore, it is often discovered by accident – such as customer complaints, discovery of missing deposits, or unexpected reconciliations – rather than through audits or routine controls.
* Analysis of Incorrect Options:
* A. Internal audits – Effective for many frauds but weak at uncovering skimming because records appear normal.
* C. Internal controls – Preventive controls may deter but cannot detect unrecorded theft.
* D. Occupational frauds – Too broad and not a detection method.
* Key Concept:Detection of Skimming – most often accidental.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Cash Receipts – Skimming Schemes and Detection.

NEW QUESTION 46
Baker, an employee of ABC Corporation, was the only employee who had control of the purchasing function for his department. Baker authorized the purchase of supplies that ABC did not need and used these supplies to make improvements to his house. This is an example of what kind of fraud?

Pay and return scheme

Personal purchases with company funds

Pass-through scheme

Theft of inventory

Detailed Explanation:
* Rationale for Correct Answer: This is personal purchases with company funds, where an employee uses company resources to acquire goods or services for personal benefit. Baker used ABC’s funds to buy supplies for home improvements.
* Analysis of Incorrect Options:
* A. Pay and return scheme – Involves overpaying a vendor and pocketing the refund.
* C. Pass-through scheme – Involves using a controlled company to bill the employer at inflated prices.
* D. Theft of inventory – Involves stealing company stock, not purchasing items for personal use.
* Key Concept: Fraudulent disbursement – billing fraud through unauthorized personal purchases.
Reference: ACFE Manual, Fraudulent Disbursements – Personal Purchases Schemes.

NEW QUESTION 47
Otto, a bank manager, purchases a new boat that he cannot afford. Knowing that one of the bank customers is an older client who does not regularly check their account, Otto takes money from the customer’s account to make his boat payments. To conceal the missing amount, Otto adjusts the bank’s general ledger. Which of the following BEST describes Otto’s scheme?

Unauthorized disbursement of funds

Moving money from dormant accounts

False accounting entry

Unauthorized withdrawal

NEW QUESTION 48
Which of the following scenarios BEST describes an electronic funds transfer (EFT) fraud scheme?

An individual uses another person’s personal identifying information to fill out a credit card application in their name and plans to make online purchases using the new card.

A hacker obtains the account and password information of consumers and uses them to direct funds from their accounts.

A restaurant server secretly scans a customer’s credit card information into a small device for fraudulent use at a later time.

An employee of a person-to-person (P2P) provider misrepresents the number of hours that they worked to increase the amount of money earned on their paycheck.

NEW QUESTION 49
Which of the following is a condition that facilitates insider cyberfraud?

Access logs are not reviewed by management.

Production programs are run during the business day.

Access privileges are restricted to assigned job functions.

Separation of duties exists in the data center.

Detailed Explanation:
* Rationale for Correct Answer:Insider cyberfraud thrives in environments where monitoring is weak.
If access logs are not reviewed, malicious activity can go undetected, enabling fraud.
* Analysis of Incorrect Options:
* B. Programs run during business day – Normal IT operations, not a fraud risk.
* C. Restricted access – This is a preventive control, not a facilitator.
* D. Separation of duties – Strong control, prevents insider fraud.
* Key Concept: Conditions facilitating insider cyberfraud.
Reference: ACFE Fraud Examiners Manual (2020), Computer and Internet Fraud: Insider Threats.

NEW QUESTION 50
Which of the following is TRUE regarding accrual-basis accounting?

Expenses are recorded in the accounting system when they are paid.

Accrual-basis accounting is simpler to use than cash-basis accounting.

The accrual-basis method focuses on tracking a company’s current cash flow.

Revenues are generally recognized when goods are delivered to a customer.

Detailed Explanation:
* Rationale for Correct Answer: Under accrual-basis accounting, revenues are generally recognized when earned (often upon delivery of goods or services), not necessarily when cash is received.
Similarly, expenses are recorded when incurred, not when paid. This provides a more accurate picture of performance and financial position.
* Analysis of Incorrect Options:
* A – This describes cash-basis accounting, not accrual-basis.
* B – Accrual accounting is more complex, not simpler.
* C – Focuses on earned revenues and incurred expenses, not immediate cash flow.
* Key Concept: Accrual accounting matches revenues with expenses in the period they occur.
Reference: ACFE Manual, Accounting Concepts – Accrual vs. Cash-Basis Accounting.

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