RCMS RCMS Financial Crimes & Fraud Prevention

Question 1

Which federal law primarily governs anti-fraud efforts by requiring accurate financial reporting and internal controls for public companies?

Accepted Answer

Sarbanes-Oxley Act (SOX)

Answer

Bank Secrecy Act (BSA)

Answer

Dodd-Frank Act

Answer

Gramm-Leach-Bliley Act

Question 2

What is 'occupational fraud' as defined by the Association of Certified Fraud Examiners (ACFE)?

Accepted Answer

The use of one's occupation for personal enrichment through deliberate misuse of employer resources

Answer

Fraud committed by outsiders posing as employees

Answer

Cybercrime targeting employee credentials

Answer

Identity theft of a company's brand

Question 3

Which of the following is a red flag indicating potential asset misappropriation?

Accepted Answer

Employees living beyond apparent means

Answer

Employees requesting overtime frequently

Answer

Managers conducting performance reviews

Answer

Staff completing mandatory training

Question 4

A compliance officer discovers that invoices are being submitted by a vendor that shares an address with an employee. This most likely indicates:

Accepted Answer

A shell company billing scheme

Answer

A legitimate vendor relationship

Answer

An error in vendor onboarding

Answer

A pricing dispute

Question 5

Under the Foreign Corrupt Practices Act (FCPA), which type of payment to a foreign official is explicitly prohibited?

Accepted Answer

Payments to obtain or retain business

Answer

Nominal gifts within company policy

Answer

Legitimate travel expenses for facility tours

Answer

Charitable donations to approved nonprofits

Question 6

Which internal control is most effective at preventing check tampering fraud?

Accepted Answer

Segregation of duties between check preparation and authorization

Answer

Requiring all employees to take annual leave

Answer

Installing cameras in the finance department

Answer

Conducting background checks at hiring