Free Certified Fraud Examiner (CFE) Trivia Questions and Answers — Questions and Answers
Question 1: Last-minute changes to revenue, numbers on balance sheets that can't be backed up, and wrongly recorded revenue are examples of:
- Control symptoms
- Perceptional symptoms
- Documentary symptoms (Correct answer)
- Analytical symptoms
Correct answer: Documentary symptoms
Explanation: <br> Last-minute revenue adjustments, unsupported balance sheet amounts, and improperly recorded revenues are examples of documentary symptoms associated with fictitious revenues.
Question 2: This is what the Gramm-Leach-Bliley Act lets:
- Customers to opt out and ask that their info not be shared
- Banks to sell customer info
- All of the above (Correct answer)
- Financial institution to share info
Correct answer: All of the above
The Gramm-Leach-Bliley Act covers all three: it permits financial institutions to share and sell customer information while also requiring that customers be given the right to opt out of having their information shared. Because each option is a valid provision, 'All of the above' is correct.
Question 3: Each of these agencies is a good fit for the kind of information it gives, except:
- State attorney gen: maintains birth records and info about people's SSNs (Correct answer)
- Dept of justice: maintains records relating to detection, prosecution, and rehab of offenders
- CIA: investigates security matters outside of US
- The secret service: deals with counterfeiting theft of gov checks, interstate credit card violations, and some computer crimes
Correct answer: State attorney gen: maintains birth records and info about people's SSNs
Maintaining birth records and SSN information is not a State Attorney General function — vital statistics are kept by state health/vital records offices and SSNs by the Social Security Administration. The other three correctly match the DOJ, CIA, and Secret Service to their actual responsibilities.
Question 4: During an audit, the auditor looks at the situation of the person being audited and plans the audit accordingly:
- Fraudulent
- Zero order
- First order (Correct answer)
- High order
Correct answer: First order
First-order planning is when the auditor assesses the auditee's specific circumstances and tailors the audit strategy accordingly at the outset. 'Zero order' and 'high order' don't describe this initial context-based planning, and 'fraudulent' is unrelated to the level of planning.
Question 5: Which of these is usually the best way to get proof that something happened?
- Chance, accident, or tip discovery
- A statistically sound sampling approach like discovery sampling
- Computer based queries of full population accounting and other databases (Correct answer)
- None of the above are effective methods of discovering evidence
Correct answer: Computer based queries of full population accounting and other databases
Explanation: <br> Computer-based queries of full population accounting and other databases are not always the best way to obtain documentary evidence. The best way to get documentary proof depends on the specific circumstances of the audit or investigation. For example, in some cases, requesting physical documents from the auditee or third-party sources may be necessary. In contrast, electronic documentation may be readily available and sufficient in other cases. Ultimately, the auditor or investigator should use professional judgment to determine the most appropriate and effective means of obtaining the necessary documentary evidence.
Question 6: Which of the following methods is typically the most effective for obtaining documentary evidence?
- Possible public exposure resulting because of the investigation
- Possible cost of the investigation
- All of the above (Correct answer)
- Perceived strength of the predication
Correct answer: All of the above
Effective gathering of documentary evidence typically relies on a combination of techniques rather than a single method, so 'All of the above' is correct. Using multiple approaches together yields more reliable and comprehensive documentation than any one alone.
Question 7: Which of the following tasks does not fall under the purview of bankruptcy courts?
- Supervising bankruptcy petitions (Correct answer)
- Conducting hearings and trials to resolve disputes
- Appointing trustees, examiners and committees
- Approving reorganization plans
Correct answer: Supervising bankruptcy petitions
Supervising the filing of bankruptcy petitions is an administrative/clerical function, not a duty of the bankruptcy court itself. The court's role is to oversee the legal proceedings — conducting hearings and trials, appointing trustees and committees, and approving reorganization plans.
Free Certified Fraud Examiner (CFE) Trivia Questions and Answers
Last-minute changes to revenue, numbers on balance sheets that can't be backed up, and wrongly recorded revenue are examples of: