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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Which of the following statements regarding financial statement disclosures is TRUE?

A) Events occurring after the close of the reporting period that might significantly affect the financial statements do not need to be disclosed.
B) Changes in accounting principles must be disclosed in the financial statements.
C) Management must disclose potential losses from ongoing litigation even when it is unlikely that the related liability will result in a future obligation.
D) All information relating to the company must be disclosed in the financial statements, regardless of materiality.

2. Which of the following search is used for unusually high incidence of returns and allowances scheme?

A) Allowances by vendors
B) None of the above
C) Disposals of allowances than reorders
D) Returns and allowances

3. Occupational fraud and abuse is a (an) __________ of doing business, in much the same way that we pay expenses for electricity, taxes, and wages.

A) Equity
B) Balance sheet
C) Financial record
D) Expense

4. Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.

A) False
B) True

5. Which of the following actions would balance the accounting equation to conceal the misappropriation of cash?

A) Increasing another asset
B) Creating fictitious revenue
C) Increasing a liability
D) Increasing owners' equity

Solutions: