ACFE Asset Misappropriation Schemes 2

Question 1

An employee submits expense reports for the same business meal twice using slightly different dates. This is best classified as which type of scheme?

Accepted Answer

Duplicate reimbursement scheme

Answer

Shell company scheme

Answer

Inventory theft

Answer

Payroll ghost employee

Question 2

Which internal control is MOST effective at detecting skimming at a retail point-of-sale?

Accepted Answer

Surprise cash counts and register reconciliations

Answer

Mandatory vacation policies

Answer

Segregation of purchasing duties

Answer

Annual inventory audits

Question 3

A purchasing manager creates a fictitious vendor, approves invoices to that vendor, and diverts payments to a personal bank account. Which element distinguishes this from a simple billing scheme?

Accepted Answer

The fictitious nature of the vendor

Answer

The use of a personal bank account

Answer

The manager's approval authority

Answer

The absence of goods or services

Question 4

Lapping is primarily associated with which asset misappropriation category?

Accepted Answer

Cash skimming of receivables

Answer

Inventory theft

Answer

Payroll fraud

Answer

Non-cash misappropriation

Question 5

An employee in accounts payable alters a legitimate vendor's bank account number in the system to redirect payments to her own account. This is an example of:

Accepted Answer

ACH/EFT fraud

Answer

Check tampering

Answer

Billing scheme

Answer

Register disbursement fraud

Question 6

Which ratio analysis technique is MOST useful for identifying fictitious employee payments?

Accepted Answer

Headcount-to-payroll cost ratio over time

Answer

Gross margin analysis

Answer

Days sales outstanding trend

Answer

Accounts payable turnover

Question 7

A warehouse employee steals raw materials and conceals the theft by falsifying inventory count sheets. The ACFE classifies this under which broad category?

Accepted Answer

Non-cash misappropriation

Answer

Fraudulent statements

Answer

Corruption

Answer

Cash on hand theft