CFE Asset Misappropriation Schemes 4

Question 1

An employee steals a company laptop and then signs a surplus property disposal form to make it appear the laptop was properly scrapped. Which category of asset misappropriation does this represent?

Accepted Answer

Non-cash asset larceny

Answer

Theft of physical non-cash assets such as equipment, combined with falsified disposal documentation, falls under the non-cash larceny branch of asset misappropriation.

Question 2

Which of the following best describes a 'pass-through' vendor scheme?

Accepted Answer

An employee-controlled entity buys goods and resells them to the employer at an inflated price

Answer

In a pass-through scheme, the fraudster's entity purchases goods at market price and resells them to the employer at a markup, capturing the profit as illicit gain.

Question 3

Data analytics used to detect payroll fraud would most likely flag which of the following as suspicious?

Accepted Answer

Two employees sharing the same bank account routing and account number

Answer

Duplicate bank account numbers on different employee records indicate a ghost employee whose pay is being diverted to a real person's account.

Question 4

A buyer at a manufacturing company receives cash payments from a supplier in exchange for steering contracts to that supplier. Under the ACFE classification, this is best described as:

Accepted Answer

Corruption — bribery/kickback

Answer

Receiving payments for influencing business decisions on behalf of another party is a corruption scheme (bribery/kickback), not asset misappropriation, under the ACFE fraud tree.

Question 5

Which of the following payroll schemes is most likely to be revealed by comparing current payroll records to terminated employee files?

Accepted Answer

Ghost employee scheme using former employee identities

Answer

Continuing to pay a terminated employee's record after separation, and diverting the funds, is detected when active payroll is compared against the HR termination list.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Asset Misappropriation Schemes 4