CFE Sample Questions Answers

According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

_________ revenues involve the recording sales of goods or services hat did not occur.

Which of the following method is NOT used to detect conflicts of interest?

_________ assumes the business will go on indefinitely in the future.

Which of the following offender types in which people who take the money and run away?

Delivery has not occurred or services have not been rendered when:

Which counts sometimes can give rise to inventory theft detection?

Physical tampering prevention is a check tampering technique that is used to secure bankassisted controls.

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:

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

________ increase assets and expenses and/or decrease liabilities and/or equity

According to fraud tree, cash has three following schemes:

In which approach, fraudsters produce whatever financial statements they wish, perhaps using just a typewriter or a personal computer.

Collusion or bid-rigging between bidders is called

A voucher is:

Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:

Conflict of interest cases are more easily prevented than detected.

One reason employees might be hesitant to use PO boxes in shell company schemes is that some businesses are specially vary of sending checks to vendors that have street addresses only.

__________ are the amounts which are owned to other entities:

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

Accounting records are designed to be kept on subjective rather than objective evidence.

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

In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through:

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

Fraudsters use the accounting system as a tool to generate the results they want in ___________ approach:

____________ corrupt employees can cause inventory to be fraudulently delivered to themselves or accomplices.

___________ should be examined to see that all are properly documented and that inappropriate payments have not been made to employees.

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?

The difference between assets and liabilities is called:

___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.

Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

The most common method for billing scheme is:

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.

____________ is a summary of the account balances carried in a ledger.

In ___________ scheme, an employee creates false vouchers or submits false invoices to the employer.

By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.

Larceny is the scheme in which an employee simply takes inventory from the company premises without attempting to conceal it in the books and records.

The principle behind full disclosure is:

______________ can be detected by closely examining the documentation submitted with the cash receipts.

By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.

In Cressey’s fraud triangle, its three of the legs are Opportunity, Pressure and

The seller’s price to the buyer is not fixed or determinable when:

Which sale occurs when the accomplice of the employee-fraudster “buys” merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Another way to eliminate competition in the solicitation phase of the selection process is to:

A running count that records how much inventory should be on hand is referred to:

Financial statement fraud is committed by:

Which of the following is NOT standard of generally accepted accounting principles?

______________ can be detected by closely examining the documentation submitted with the cash receipts.

Statistical sampling enables the examiner to predict the occurrence rate for the population and therefore determine with some accuracy the error rate, or the potential for fraud.

When employees avoid detection in a refund scheme to keep the sizes of the disbursement low, is referred to:

The most common method for billing scheme is:

In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through: