ACFE Asset Misappropriation Schemes 5

Question 1

A cashier voids a legitimate sale transaction after collecting payment from the customer and pockets the cash. This is BEST described as:

Accepted Answer

Voiding and cash theft (larceny)

Answer

Skimming

Answer

Register disbursement fraud

Answer

Refund scheme

Question 2

Which of the following scenarios represents a 'fictitious refund' scheme?

Accepted Answer

A manager approves refunds for returns that never occurred and routes the cash to herself

Answer

A customer requests a refund for a defective product

Answer

A vendor credits the company for returned goods

Answer

An employee falsifies her expense report

Question 3

An employee misappropriates company funds over three years before detection. The ACFE data shows that longer-duration schemes tend to cause:

Accepted Answer

Larger median losses than schemes detected quickly

Answer

Smaller losses due to smaller individual transactions

Answer

No difference in loss amounts

Answer

Lower losses because auditors catch them sooner

Question 4

A payroll clerk adds a deceased employee to the payroll for two months after death, depositing checks into a joint account. This is BEST classified as:

Accepted Answer

Ghost employee scheme

Answer

Falsified hours scheme

Answer

Commission scheme

Answer

Expense reimbursement fraud

Question 5

Which of the following is the PRIMARY reason asset misappropriation schemes are so prevalent compared to other occupational fraud categories?

Accepted Answer

They are the most numerous and accessible to employees at all levels

Answer

They cause the greatest financial losses per incident

Answer

They are the easiest to prosecute criminally

Answer

They are the hardest to detect by auditors

Question 6

A company implements a hotline allowing anonymous reporting of suspected fraud. According to the ACFE, this control primarily reduces fraud by:

Accepted Answer

Deterring fraud through fear of detection

Answer

Automatically detecting financial statement anomalies

Answer

Eliminating the need for internal audits

Answer

Reducing the number of external audits required

Question 7

Which document comparison would BEST help detect an altered payee check tampering scheme?

Accepted Answer

Comparing original check images from the bank to the amounts in the cash disbursements journal

Answer

Comparing vendor invoices to purchase orders

Answer

Comparing payroll registers to HR headcount

Answer

Comparing inventory counts to purchase records