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

1. Skimming is:

A) None of above
B) The removal of cash from a victim entity after its entry in an accounting system.
C) The removal of cash from a victim entity prior to its entry in an accounting system.
D) The addition of cash from a victim entity prior to its entry in an accounting system.

2. 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) False
B) True

3. Which of the following statements regarding financial statement disclosures is TRUE?

A) Changes in accounting principles must be disclosed in the financial statements.
B) All information relating to the company must be disclosed in the financial statements, regardless of materiality.
C) Management must disclose potential losses from ongoing litigation even when it is unlikely that the related liability will result in a future obligation.
D) Events occurring after the close of the reporting period that might significantly affect the financial statements do not need to be disclosed.

4. An analytical review reveals that XYZ Company's cost of goods sold has increased by 75% in the last year.
However, its sales revenues only increased by 25% during the same period. This situation MOST LIKELY indicates which of the following?

A) There were more sales returns this year than in the prior year.
B) There were fewer sales this year compared to last year.
C) Inventory has been depleted by theft.
D) The company started recording warranty liabilities.

5. Inventory shrinkage is the unaccounted-for reduction in the company's inventory that does not result from theft.

A) False
B) True

Solutions: