Certified Fraud Examiner Asset Misappropriation Schemes Questions and Answers

Question 1

An employee at a retail store processes a customer's cash payment for a $100 item but only records a sale of $20 in the cash register, pocketing the $80 difference.
This cash has not yet been recorded on the company's books.
Which type of asset misappropriation scheme does this scenario describe?

Accepted Answer

Skimming

Answer

Cash larceny

Answer

Billing scheme

Answer

Expense reimbursement fraud

Question 2

Which of the following is considered a fraudulent disbursement scheme?

Accepted Answer

Creating a shell company and submitting fake invoices for payment.

Answer

Stealing cash from a co-worker's desk.

Answer

Pocketing a customer's payment before it is entered into the sales system.

Answer

Misusing a company vehicle for personal errands.

Question 3

A payroll clerk creates a fictitious employee in the company's payroll system, complete with a fake social security number and address. Each pay period, the clerk processes a paycheck for this 'ghost employee' and deposits it into a bank account they control. This is an example of what type of asset misappropriation?

Accepted Answer

Payroll fraud

Answer

Check tampering

Answer

Cash larceny

Answer

Skimming

Question 4

The primary difference between cash larceny and skimming is:

Accepted Answer

Whether the stolen funds were on the company's books before the theft.

Answer

The amount of money stolen.

Answer

The perpetrator's level of authority within the company.

Answer

Whether the theft involves physical currency or electronic funds.

Question 5

Which of the following is a common red flag that might indicate an employee is involved in an asset misappropriation scheme?

Accepted Answer

The employee consistently lives a lifestyle that appears to be beyond their known salary.

Answer

The employee frequently works overtime and completes all assigned tasks.

Answer

The employee regularly shares job duties with colleagues to promote teamwork.

Answer

The employee takes all of their allotted vacation time each year.

Question 6

An employee uses a company-owned delivery truck to run a personal moving business on weekends, keeping all the profits. This is best described as what form of asset misappropriation?

Accepted Answer

Misuse of non-cash assets

Answer

Inventory theft

Answer

Billing scheme

Answer

Corruption