CFE Certified Fraud Examiner (CFE) MCQ 3

Question 1

An employee steals cash before it is recorded in the company's accounting system. This is an example of which fraud scheme?

Accepted Answer

Skimming

Answer

Skimming is an off-book fraud where cash is stolen before it is recorded in the accounting system, making it harder to detect.

Question 2

In occupational fraud, which department most commonly perpetrates billing schemes?

Accepted Answer

Accounts payable

Answer

Accounts payable employees have access to the payment process, making them the most common perpetrators of billing schemes.

Question 3

The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies from doing which of the following?

Accepted Answer

Bribing foreign government officials to obtain business

Answer

The FCPA makes it illegal for U.S. persons and companies to bribe foreign government officials to obtain or retain business.

Question 4

Which of the following best describes 'lapping' in the context of accounts receivable fraud?

Accepted Answer

Concealing a cash theft by misapplying subsequent customer payments

Answer

Lapping conceals theft of a customer's payment by applying a later customer's payment to the first account, creating a perpetual cover-up chain.

Question 5

Which of the following is a PRIMARY objective of a fraud risk assessment?

Accepted Answer

Identifying inherent fraud risks and evaluating controls

Answer

A fraud risk assessment aims to identify where fraud could occur and evaluate the effectiveness of existing controls to mitigate those risks.

Certified Fraud Examiner Exam Practice Test