CFE Asset Misappropriation Schemes 5

Question 1

Which of the following scenarios best illustrates a 'fictitious refund' scheme at a retail company?

Accepted Answer

A cashier processes a refund for merchandise that was never returned and pockets the cash

Answer

A fictitious refund scheme involves processing a return transaction for merchandise that was not actually returned, generating cash that the employee steals.

Question 2

A company discovers that its petty cash fund consistently requires reimbursement more frequently than expected. The most likely fraudulent explanation is:

Accepted Answer

The fund custodian is making unsupported disbursements and pocketing cash

Answer

Frequent, unexplained depletion of petty cash beyond normal usage patterns is a classic indicator of the custodian stealing from the fund.

Question 3

Under the ACFE Fraud Tree, which of the following is classified as a 'fraudulent disbursement' scheme?

Accepted Answer

Submitting fictitious expense reimbursement claims

Answer

Fraudulent disbursements involve causing the company to issue payments through legitimate-appearing channels, such as reimbursing fabricated personal expenses.

Question 4

An examiner reviewing accounts receivable finds several large balances that have been written off as uncollectible, all approved by the same accounts receivable clerk. What fraud scheme should be suspected?

Accepted Answer

Skimming with write-off concealment

Answer

Writing off a customer's balance as bad debt after pocketing their payment is a common concealment technique that removes the evidence of the original theft.

Question 5

Which of the following internal controls is specifically designed to prevent check tampering?

Accepted Answer

Storing blank checks in a locked location accessible only to authorized personnel

Answer

Restricting physical access to blank check stock prevents unauthorized individuals from writing or altering checks payable to themselves.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Asset Misappropriation Schemes 5