Aiva Books - CFE certified Fraud Examiners Exam Practice Questions and Dumps by ACFE: EXAM REVIEW QUESTIONS FOR CFE Exam Prep Updated 2020

CFE Certified Fraud Examiners Exam Practice Questions and Dumps by ACFE

EXAM REVIEW QUESTIONS FOR CFE Exam Prep Updated 2020

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Note: Find answers of the questions at the last of the book.

CFE.exam.89q

Certified Fraud Examiner

Sections

1. Fraud Prevention and Deterrence
2. Financial Transactions and Fraud Schemes
3. Investigation

QUESTION 1

According to a survey, in principal perpetrator, males in a majority of cases, accounting for_____percent of frauds versus____percent in which a female was the primary culprit.

1. 62 versus 36
2. 61 versus 39
3. 62 versus 37
4. None of the above

Section: Fraud Prevention and Deterrence

QUESTION 2

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

1. Forced Balance
2. Trend analysis
3. Expense account
4. None of all

Section: Fraud Prevention and Deterrence

QUESTION 3

People commit financial statement fraud to:

1. Conceal false business performances
2. Preserve personal status/control
3. Maintain personal income
4. Stand outside the accounting system

Section: Fraud Prevention and Deterrence

QUESTION 4

Which of the following is NOT the reason why senior management will overstate business statement?

1. Comply with debit covenants
2. Meet personal performance criteria
3. Trigger performance related compensation
4. Show a pattern of growth to support sale of a business

Section: Fraud Prevention and Deterrence

QUESTION 5

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

1. Proper documentation, segregation of duties, independent checks and physical safeguards
2. Proper documentation, segregation of duties, independent checks and inventory control
3. Proper documentation, physical padding, independent checks and physical safeguards
4. prenumbered affiliations, segregation of duties, independent checks and physical safeguards

Section: Fraud Prevention and Deterrence

QUESTION

SIMULATION

means that traditional bribery statutes proscribe only payments made to influence the decisions of government agents or employees.

QUESTION 7

Which of the following can constitute a bribe, even if the illicit payment is never actually made?

1. Offering a payment
2. Corruption in payment
3. kickback payment
4. Overbilling in payment

Section: Fraud Prevention and Deterrence

QUESTION 8

The most common method of detection in corruption cases is:

1. Internal audits
2. Internal controls
3. Tips
4. By accident

Section: Fraud Prevention and Deterrence

QUESTION 9

Undisclosed payments made by vendors to employees of purchasing companies are referred to as:

1. Bid-rigging
2. Kickbacks
3. Presolicitaion
4. None of the above

Section: Fraud Prevention and Deterrence

QUESTION 10

Bid-rigging scheme occurs when:

1. an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.
2. an employee does not assist a vendor in winning a contract through the competitive bidding process.
3. an employee once assists a vendor in winning a contract through a single competitive bidding process.
4. an employee once assists a vendor in winning a contract through a single competitive bidding process.

Section: Fraud Prevention and Deterrence

QUESTION 11

Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendors side of the transaction who is not making an illicit payment.

1. True
2. False

Section: Fraud Prevention and Deterrence

QUESTION 12

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?

1. Bid-rigging
2. Kickbacks
3. Competitive bidding
4. Bid solicitation

Section: Fraud Prevention and Deterrence

QUESTION 13

The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.

1. True
2. False

Section: Fraud Prevention and Deterrence

QUESTION 14

Which of the following is NOT the phase of the bidding process?

1. Presolicitation
2. Postsolicitation
3. Solicitation
4. Submission

Section: Fraud Prevention and Deterrence

QUESTION 15

When a victim company purchases unnecessary goods or services from a supplier at the direction of the corrupt employee, this results in:

1. Presolicitation scheme
2. Need recognition scheme
3. False sole-source scheme
4. Submission scheme

Section: Fraud Prevention and Deterrence

QUESTION 16

In scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

1. Deliberate writing of vague specifications
2. Need recognition
3. False specification
4. Bid-splitting

Section: Fraud Prevention and Deterrence

QUESTION 17

Which of the following is NOT the reason to bribe employees of the purchaser?

1. To ensure receipt of a late bid
2. To extend the bid opening date
3. To ensure bid-splitting
4. To falsify the bid log

Section: Fraud Prevention and Deterrence

QUESTION 18

Placing any restriction in the solicitation documents that tend to restrict competition is called prebid solicitation.

1. True
2. False

Section: Fraud Prevention and Deterrence

QUESTION 19

Which of the following is the criterion for bid solicitation?

1. Containing false statements
2. Allowing the purchaser to discuss possible employment with the contractor
3. To withdraw low bids
4. To falsify the bid log

Section: Fraud Prevention and Deterrence

QUESTION 20

Collusion or bid-rigging between bidders is called