CFS Asset Misappropriation

Question 1

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

Accepted Answer

Approximately 86%

Answer

The ACFE Report to the Nations consistently shows asset misappropriation represents approximately 86% of all occupational fraud cases, making it the most frequent category.

Question 2

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

Accepted Answer

Taking cash before it is entered into the accounting system

Answer

Skimming is an off-book scheme where cash is stolen before any record of the receipt is created, making detection through records alone nearly impossible.

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

In a lapping scheme, an employee steals one customer's payment and covers it by applying the next customer's payment, creating a perpetual cycle of misapplication.

Question 4

A billing scheme using a shell company typically involves:

Accepted Answer

Submitting invoices from a fictitious company controlled by the fraudster

Answer

Shell company billing schemes involve the fraudster establishing a fictitious vendor entity and submitting invoices for goods or services never actually provided.

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

The timing distinguishes these schemes: skimming is off-book theft before recordation, while cash larceny involves stealing cash that has already been entered into the accounting records.

(CFS) Certified Fraud Specialist Practice Test

(CFS) Certified Fraud Specialist Practice Test

CFS Asset Misappropriation