CFE Practice Questions 2

Question 1

Under the ACFE's Fraud Tree, which category does expense reimbursement fraud fall under?

Accepted Answer

Asset Misappropriation

Answer

Expense reimbursement fraud is a form of asset misappropriation under the fraudulent disbursements branch.

Question 2

A shell company scheme is best described as:

Accepted Answer

Submitting invoices from a fictitious vendor controlled by the fraudster

Answer

A shell company scheme involves creating a fake vendor entity to submit fraudulent invoices and divert payments.

Question 3

Which analytical technique compares an organization's financial ratios to industry benchmarks to identify anomalies?

Accepted Answer

Ratio analysis

Answer

Ratio analysis compares financial metrics to industry norms or historical data to identify potential fraud indicators.

Question 4

The Foreign Corrupt Practices Act (FCPA) primarily prohibits U.S. companies from:

Accepted Answer

Bribing foreign government officials to obtain business

Answer

The FCPA prohibits U.S. persons and companies from paying bribes to foreign officials to obtain or retain business.

Question 5

Which element is NOT required to prove occupational fraud in a civil case?

Accepted Answer

The perpetrator had a prior criminal record

Answer

Prior criminal history is not a required element of civil fraud; the elements focus on the act, reliance, and resulting harm.

Certified Fraud Examiner Exam Practice Test