ACFE Asset Misappropriation Schemes 3

Question 1

Which type of check tampering scheme involves an employee intercepting outgoing checks and forging the payee's endorsement to deposit them personally?

Accepted Answer

Forged endorsement scheme

Answer

Forged maker scheme

Answer

Altered payee scheme

Answer

Authorized maker scheme

Question 2

A sales representative collects customer cash payments and records them as 'sales returns' to balance the books. This concealment technique is known as:

Accepted Answer

Write-off scheme

Answer

Lapping

Answer

Conversion

Answer

False account entries

Question 3

Under the ACFE Fraud Tree, which of the following is a sub-category of payroll schemes?

Accepted Answer

Ghost employees

Answer

Shell companies

Answer

Skimming

Answer

Larceny of cash on hand

Question 4

An employee uses a company credit card for personal purchases and submits the statements for payment. This scheme is BEST categorized as:

Accepted Answer

Expense reimbursement fraud

Answer

Misuse of company property

Answer

Non-cash misappropriation

Answer

Check tampering

Question 5

Benford's Law is most effective as an analytical tool for detecting asset misappropriation because:

Accepted Answer

It reveals unusual digit distributions in financial data suggesting manipulation

Answer

It identifies vendors without tax ID numbers

Answer

It compares headcount to payroll totals

Answer

It matches purchase orders to receiving reports

Question 6

A supervisor approves overtime for employees who did not actually work those hours, splitting the fraudulent pay. This is classified as:

Accepted Answer

Falsified hours and salary scheme

Answer

Commission scheme

Answer

Ghost employee scheme

Answer

Expense reimbursement fraud

Question 7

Which asset misappropriation scheme would MOST likely be uncovered by comparing the vendor master file to the employee master file?

Accepted Answer

Shell company/fictitious vendor scheme

Answer

Lapping

Answer

Ghost employee scheme

Answer

Register disbursement fraud