CFS Asset Misappropriation

Question 1

According to ACFE research, approximately what percentage of occupational fraud cases involve asset misappropriation?

Accepted Answer

Approximately 86%

Answer

Approximately 40%

Answer

Approximately 60%

Answer

Approximately 95%

Question 2

Which of the following best defines a 'skimming' scheme?

Accepted Answer

Taking cash before it is entered into the accounting system

Answer

Stealing cash after it has been recorded in the accounting system

Answer

Altering checks to redirect payments to a fraudster

Answer

Creating fictitious vendors to receive payments

Question 3

The 'lapping' scheme is primarily used to:

Accepted Answer

Conceal a cash shortage by applying subsequent customer payments to offset prior thefts

Answer

Inflate inventory counts to cover physical theft

Answer

Create fictitious employee records in payroll

Answer

Generate false invoices through shell companies

Question 4

A billing scheme using a shell company typically involves:

Accepted Answer

Submitting invoices from a fictitious company controlled by the fraudster

Answer

Overstating legitimate vendor invoices by a small percentage

Answer

Using company credit cards for personal purchases

Answer

Falsifying expense reports for non-existent travel

Question 5

What is the critical difference between cash larceny and skimming?

Accepted Answer

Cash larceny occurs after the cash is recorded; skimming occurs before it is recorded

Answer

Cash larceny always involves larger dollar amounts

Answer

Cash larceny always involves check manipulation

Answer

Skimming requires collusion while cash larceny does not

Question 6

Which control is most effective at preventing payroll fraud involving fictitious (ghost) employees?

Accepted Answer

Segregation of duties between HR and payroll combined with periodic headcount verification

Answer

Mandatory direct deposit for all employees

Answer

Fully automated payroll processing systems

Answer

Management approval of all overtime requests

Question 7

An employee submits claims for reimbursement of 500 miles of business driving that never actually occurred. This is classified as:

Accepted Answer

A fictitious expense scheme

Answer

An inflated expense scheme

Answer

A mischaracterized expense scheme

Answer

A multiple reimbursement scheme