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SAEE Special Agent Entrance Exam — VIP Practice Exam III
SAEE — The SAEE (Special Agent Entrance Exam) is administered by the IRS Criminal Investigation Division and other federal law enforcement agencies to assess candidates' verbal reasoning, quantitative reasoning, analytical/investigative skills, and written communication ability for special agent positions.
52
Questions
90m
Time Limit
70.00%
To Pass
Question 1 of 52👑 VIP
Read the following passage and answer the question below. "Federal investigators discovered that a regional accounting firm had been systematically inflating client revenue figures by recording fictitious sales transactions in the final quarter of each fiscal year. The scheme allowed clients to obtain larger lines of credit from lending institutions. Investigators noted that the false entries were always reversed in the first week of the following fiscal year, leaving no net effect on annual totals but temporarily distorting quarterly balance sheets. The firm's managing partner approved each adjustment personally." According to the passage, which of the following best describes why the fraudulent entries were ultimately difficult to detect on annual financial statements?
Questions 2–52 and full explanations are VIP-exclusive.