CFE Trivia 3

Question 1

The term 'skimming' in occupational fraud refers to which type of scheme?

Accepted Answer

Removing cash before it is recorded in the accounting system

Answer

Skimming is an off-book fraud where cash is stolen before it is entered into the accounting records, making it difficult to detect through normal reconciliations.

Question 2

Which element is NOT part of the classic fraud triangle?

Accepted Answer

Capability

Answer

The classic fraud triangle consists of pressure, opportunity, and rationalization; 'capability' was added by David Wolfe and Dana Hermanson to form the fraud diamond.

Question 3

What does the term 'shell company' refer to in a fraud context?

Accepted Answer

A fictitious or inactive entity used to disguise financial transactions

Answer

A shell company is an entity with no real operations used to funnel fraudulent payments, launder money, or conceal asset ownership.

Question 4

Under the ACFE's occupational fraud classification system, which category includes financial statement fraud?

Accepted Answer

Financial statement fraud

Answer

The ACFE Occupational Fraud and Abuse Classification System (Fraud Tree) has three primary branches: asset misappropriation, corruption, and financial statement fraud.

Question 5

What is 'check tampering' in the context of occupational fraud?

Accepted Answer

All of the above

Answer

Check tampering encompasses altering checks, forging signatures, intercepting and redirecting checks, and concealing the fraud — making 'all of the above' correct.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Trivia 3