FREE Certified Fraud Examiner (CFE) V5.0 Questions and Answers

Question 1

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.

Accepted Answer

Solicitation

Answer

Need recognition

Answer

Submission

Answer

False specification

Question 2

A journal that keeps track of all sales made on credit or cash is:

Accepted Answer

Accounts receivable journal

Answer

Disbursement journal

Answer

General journal

Answer

Accounts payable journal

Question 3

The forms that allow noncash assets to be moved from one place in a company to another are called:

Accepted Answer

Asset requisition

Answer

All of the above

Answer

Inventory usages

Answer

Fake sales

Question 4

According to the false billing scheme,

Accepted Answer

Employees cause their company to purchase merchandise that the company does not need

Answer

Employees cause their company to sale merchandise that the company does not need

Answer

Employees do not cause their company to purchase merchandise that the company does not need

Answer

Employees do not cause their company to sale merchandise that the company does not need

Question 5

When a corrupt employee tells a victim company to buy goods or services from a supplier that they don't need, this leads to:

Accepted Answer

Need recognition scheme

Answer

NFalse sole-source scheme

Answer

Presolicitation scheme

Answer

Submission scheme

Question 6

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.

Accepted Answer

Concealed check scheme

Answer

Payable check scheme

Answer

Legitimate check scheme

Answer

Endorse check scheme

Question 7

Which of the following is true about red flags related to fake income?

Accepted Answer

A significant volume of sales to entries whose substance and ownership is not known

Answer

Usual growth in the number of days purchase in receivables

Answer

Slow growth or usual profitability, when not compared to other companies in the same industry

Answer

A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters