ACFE Financial Transactions & Fraud Schemes 2

Question 1

A company discovers that an employee has been submitting expense reports for personal meals and entertainment while falsely labeling them as business expenses. This is best classified as:

Accepted Answer

Expense reimbursement fraud

Answer

Expense reimbursement fraud occurs when employees claim personal expenses as business-related to receive unauthorized reimbursements.

Question 2

In a check tampering scheme, an employee intercepts checks made payable to vendors and alters the payee name to herself before depositing them. This is an example of:

Accepted Answer

Altered payee scheme

Answer

An altered payee scheme involves changing the name of the legitimate payee on a check to redirect funds to the fraudster.

Question 3

Which type of financial statement fraud involves recording revenue before it has been earned or before the earnings process is complete?

Accepted Answer

Premature revenue recognition

Answer

Premature revenue recognition records sales before all conditions for revenue recognition under accounting standards have been met.

Question 4

A purchasing manager sets up a shell company and submits invoices to her employer for goods never delivered. The invoices are approved and paid. This scheme is categorized as:

Accepted Answer

Shell company scheme

Answer

A shell company scheme involves creating a fictitious business entity to submit fraudulent invoices to the victim organization.

Question 5

The term 'larceny' in the context of asset misappropriation refers to:

Accepted Answer

Theft of cash or assets after they have been recorded in the books

Answer

Larceny involves the theft of assets that have already been recorded on the books, distinguishing it from skimming where assets are taken before recording.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Financial Transactions & Fraud Schemes 2