CFE Trivia 2

Question 1

Which organization publishes the Report to the Nations on Occupational Fraud and Abuse?

Accepted Answer

ACFE

Answer

The Association of Certified Fraud Examiners (ACFE) publishes the Report to the Nations, the primary global study on occupational fraud.

Question 2

The 'fraud triangle' concept was originally introduced by which criminologist?

Accepted Answer

Donald Cressey

Answer

Donald Cressey developed the fraud triangle theory through his study of embezzlers, identifying pressure, opportunity, and rationalization.

Question 3

According to ACFE research, what percentage of fraud cases are initially detected by tips?

Accepted Answer

About 43%

Answer

ACFE's Report to the Nations consistently finds that tips are the most common fraud detection method, accounting for roughly 43% of cases.

Question 4

Which of the following best describes 'lapping' as a fraud scheme?

Accepted Answer

Stealing cash and covering it by applying later receipts

Answer

Lapping involves stealing a customer's payment and then covering the shortage by posting a subsequent customer's payment to the first account.

Question 5

What is the primary purpose of a 'hotline' in fraud prevention programs?

Accepted Answer

To provide an anonymous channel for reporting suspected fraud

Answer

Fraud hotlines give employees and others an anonymous means to report suspected misconduct, which is the most effective fraud detection tool.

Certified Fraud Examiner Exam Practice Test