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

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.

Question 2

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

Accepted Answer

Accounts receivable journal

Answer

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.

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

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."

Question 4

According to the false billing scheme,

Accepted Answer

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

Answer

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.

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

When a corrupt employee manufactures a justification for buying goods or services the company doesn't actually need, that occurs at the need-recognition stage of the procurement cycle, making it a need recognition scheme. Sole-source, presolicitation, and submission schemes target other phases of the procurement process.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

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