CFE Practice Questions 4

Question 1

Which document analysis technique involves examining the pressure indentations on paper beneath a written document?

Accepted Answer

ESDA (Electrostatic Detection Apparatus)

Answer

ESDA detects latent impressions on paper caused by writing pressure, useful for detecting altered or forged documents.

Question 2

Benford's Law is most useful in fraud examination for:

Accepted Answer

Identifying unusual patterns in naturally occurring numerical data sets

Answer

Benford's Law predicts the frequency distribution of leading digits in legitimate data sets, and deviations may indicate manipulation.

Question 3

The 'fraud triangle' theory attributes occupational fraud to three conditions. Which of the following is NOT one of them?

Accepted Answer

Greed

Answer

The fraud triangle consists of perceived pressure, opportunity, and rationalization—greed is not one of the three elements.

Question 4

During an investigation, an examiner discovers that a purchasing manager approved invoices from a vendor owned by their spouse. This is an example of:

Accepted Answer

Conflicts of interest

Answer

A conflict of interest exists when an employee has an undisclosed personal stake in a transaction that influences their business decisions.

Question 5

Which statement about the False Claims Act is accurate?

Accepted Answer

It allows private citizens to file suit on behalf of the government and share in any recovery

Answer

The False Claims Act's qui tam provisions allow whistleblowers (relators) to sue on the government's behalf and receive a portion of the recovered funds.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Practice Questions 4