CFE Certified Fraud Examiner (CFE) MCQ 2

Question 1

A company controller creates fictitious vendors and approves invoices from those vendors for payment. This scheme is best classified as which type of asset misappropriation?

Accepted Answer

Billing scheme

Answer

Billing schemes involve employees causing an organization to issue fraudulent payments to fictitious or real vendors under false pretenses.

Question 2

Under the ACFE's fraud tree, which of the following is a subcategory of corruption?

Accepted Answer

Economic extortion

Answer

Economic extortion is a subcategory of corruption in which an employee demands payment in exchange for a business decision favorable to the payer.

Question 3

Which interview technique involves asking open-ended, narrative questions to encourage a subject to tell a story in their own words?

Accepted Answer

Cognitive interview

Answer

The cognitive interview uses memory-enhancing techniques including open-ended narrative questions to maximize the amount of accurate information gathered.

Question 4

The 'tone at the top' concept in fraud prevention primarily refers to which of the following?

Accepted Answer

Management's attitude and commitment to ethical conduct

Answer

Tone at the top reflects how senior management's ethical behavior and commitment to integrity sets the cultural standard for the entire organization.

Question 5

A fraud examiner obtains bank records through a grand jury subpoena. This type of evidence is considered which of the following?

Accepted Answer

Documentary evidence

Answer

Bank records, invoices, and other written documents obtained during an investigation are classified as documentary evidence.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Certified Fraud Examiner (CFE) MCQ 2