CFS Asset Misappropriation 2

Question 1

In a 'pay-and-return' billing scheme, the fraudster typically:

Accepted Answer

Overpays a vendor and intercepts the vendor's refund check when returned

Answer

In a pay-and-return scheme, the fraudster intentionally overpays or pays a fraudulent invoice, then intercepts and keeps the vendor's refund when the error is discovered.

Question 2

Which of the following is an example of non-cash asset misappropriation?

Accepted Answer

Stealing or misusing company inventory and equipment

Answer

Non-cash asset misappropriation involves stealing or misusing tangible assets such as inventory, equipment, or supplies rather than cash or monetary instruments.

Question 3

A payroll clerk adds unauthorized overtime hours to her own paycheck each pay period. This is best classified as:

Accepted Answer

Hours and earnings fraud

Answer

Hours and earnings fraud involves falsifying the hours worked or earnings calculations on one's own paycheck, such as adding unauthorized overtime, to inflate compensation received.

Question 4

An employee 'force balances' the petty cash fund by:

Accepted Answer

Creating fictitious receipts to cover cash shortages caused by theft

Answer

Forced balancing involves fabricating receipts or supporting documentation to make the petty cash fund appear fully intact despite actual theft of the funds.

Question 5

An employee uses a company credit card to purchase a personal laptop and codes the charge as 'office equipment supplies.' This is known as:

Accepted Answer

Personal purchases scheme

Answer

A personal purchases scheme involves using company payment mechanisms—credit cards, purchase orders—to acquire personal items while misrepresenting them as legitimate business expenditures.

(CFS) Certified Fraud Specialist Practice Test

(CFS) Certified Fraud Specialist Practice Test

CFS Asset Misappropriation 2