ACFE - Association of Certified Fraud Examiners Asset Misappropriation Schemes Questions and Answers

Question 1

An employee in the accounts receivable department steals a customer's payment before it is recorded in the company's books.
To conceal the theft, the employee applies a payment from another customer to the first customer's account.
This fraudulent scheme is best described as:

Accepted Answer

Lapping

Answer

Skimming

Answer

Cash Larceny

Answer

Billing Scheme

Question 2

Which of the following is considered a 'red flag' or behavioral indicator that might suggest an employee is involved in an asset misappropriation scheme?

Accepted Answer

Consistently refusing to take vacation or share job duties.

Answer

Frequently complaining about the company's coffee quality.

Answer

Participating in multiple company-sponsored social events.

Answer

Requesting additional training on new accounting software.

Question 3

A payroll clerk creates a fictitious employee in the company's payroll system and arranges for the ghost employee's paycheck to be directly deposited into a bank account controlled by the clerk. This type of asset misappropriation is a form of:

Accepted Answer

Fraudulent Disbursement

Answer

Skimming

Answer

Expense Reimbursement Fraud

Answer

Non-cash Misappropriation

Question 4

What is the primary difference between cash larceny and skimming?

Accepted Answer

Cash larceny is the theft of cash that has already been recorded on the company's books, while skimming is the theft of off-book funds.

Answer

Cash larceny involves stealing from the cash register, while skimming involves stealing inventory.

Answer

Skimming involves stealing cash that has already been recorded on the company's books, while cash larceny is the theft of off-book funds.

Answer

Cash larceny is a fraudulent disbursement scheme, while skimming is a corruption scheme.

Question 5

An employee uses a company credit card to purchase a home theater system for personal use and submits the expense report with a receipt from a business dinner of the same amount. This is an example of which type of asset misappropriation scheme?

Accepted Answer

Expense Reimbursement Fraud

Answer

Billing Scheme

Answer

Check Tampering

Answer

Theft of Non-Cash Assets

Question 6

Which of the following scenarios describes a non-cash asset misappropriation scheme?

Accepted Answer

A warehouse employee steals a pallet of inventory and sells it to a third party.

Answer

A cashier voids a legitimate sale and pockets the customer's cash payment.

Answer

An accountant forges a signature on a company check and makes it payable to himself.

Answer

A manager approves a payment for a fake invoice from a shell company she created.