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

Voiding a legitimate transaction after collecting cash and stealing the proceeds is a form of cash larceny because the sale was recorded before being reversed.

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

Fictitious refund schemes involve employees generating fraudulent refund transactions for non-existent returns and diverting the cash or credit to themselves.

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

ACFE research consistently shows that fraud schemes lasting longer cause significantly higher median losses because the fraud compounds over time before detection.

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

Continuing to pay a deceased employee without authorization creates a ghost employee—a fraudulent payroll record for a person who cannot work.

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

Asset misappropriation is the most common fraud category because opportunities exist at virtually every organizational level wherever employees handle cash, inventory, or other assets.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Asset Misappropriation Schemes 5