CFS Fraud Prevention & Detection 3

Question 1

Which element of the Fraud Triangle represents an employee's belief that fraud will not be discovered?

Accepted Answer

Opportunity

Answer

Opportunity reflects the perceived ability to commit fraud undetected, often due to weak internal controls.

Question 2

A company implements mandatory job rotation for employees who handle cash. This control primarily addresses which fraud risk factor?

Accepted Answer

Opportunity

Answer

Job rotation limits continuous access to assets and records, reducing the opportunity for sustained fraud.

Question 3

Which document best supports detection of fictitious employees in a payroll fraud scheme?

Accepted Answer

HR personnel files with verified I-9 forms

Answer

Verifying personnel files and I-9 documentation confirms that all employees on payroll are legitimate, real individuals.

Question 4

Continuous monitoring differs from periodic auditing primarily because it:

Accepted Answer

Detects anomalies in real time as transactions occur

Answer

Continuous monitoring uses automated tools to review transactions as they happen, enabling faster detection of irregularities.

Question 5

A supervisor who approves their own subordinate's expense reports is an example of a breakdown in:

Accepted Answer

Segregation of duties

Answer

Segregation of duties requires that no single person control all phases of a transaction, including both submission and approval.

(CFS) Certified Fraud Specialist Practice Test