FREE Certified Fraud Examiner (CFE) V5.0 Questions and Answers
Check to tamper is fraud in which an employee writes a fake check and gives it to an authorized maker, who signs it without a proper review, usually along with reality checks.
Explanation:
The "Concealed Check Scheme" is a type of check tampering fraud where an employee hides or conceals a check, usually by intercepting it before it reaches its intended recipient, and then cash or deposits it for personal gain.
The forms that allow noncash assets to be moved from one place in a company to another are called:
Explanation:
The forms that allow noncash assets to be moved from one location in a company to another can be used to facilitate the misappropriation of those assets and are called "Asset requisition fraud."
A journal that keeps track of all sales made on credit or cash is:
Explanation:
An accounts receivable journal keeps track of all sales made on credit or cash. It records the date, customer name, invoice number, amount of the deal, and any payments made on the account. This information is then used to generate customer statements and track the overall accounts receivable balance.
Which of the following is true about red flags related to fake income?
Explanation:
A significant sales volume to entries whose substance and ownership are unknown is a red flag associated with fictitious revenues. Other red flags related to fictitious revenues may include unusual payment or return patterns, missing or altered documents, and transactions with related parties.
According to the false billing scheme,
Explanation:
A fraudulent billing scheme refers to fraud in which an employee causes their company to pay false invoices or bills for goods or services that were never received or performed. The employee typically creates or approves fraudulent invoices from a shell company or a non-existent vendor and then authorizes payment to that vendor, allowing the employee to collect the payment for themselves.
Fraudsters try to influence the choice of a contractor during which phase of the competitive bidding process by limiting the number of competitors from whom bids are sought.
Explanation:
Fraudsters attempt to influence the selection of a contractor by restricting the pool of competitors from whom bids are sought during the solicitation phase of the competitive bidding process.