CFE-Financial-Transactions-and-Fraud-Schemes Dumps PDF New [2023] Ultimate Study Guide
CFE-Financial-Transactions-and-Fraud-Schemes Exam Dumps PDF Updated Dump from Actual4Dumps Guaranteed Success
NEW QUESTION # 14
People commit financial statement fraud to:
- A. Maintain personal income
- B. Conceal false business performances
- C. Preserve personal status/control
- D. Stand outside the accounting system
Answer: C
NEW QUESTION # 15
According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:
- A. Persuasive evidence of an arrangement exists
- B. Services has been rendered
- C. Timings have been met
- D. Collectability is reasonably assured
Answer: C
NEW QUESTION # 16
The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.
Answer:
Explanation:
Price-level adjusted historical cost
NEW QUESTION # 17
Which of the following is true for Red flags associated with fictitious revenues?
- A. A significant volume of sales to entries whose substance and ownership is not known.
- B. Usual growth in the number of days purchase in receivables
- C. Slow growth or usual profitability, when not compared to other companies in the same industry.
- D. A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.
Answer: A
NEW QUESTION # 18
Skimming is:
- A. None of above
- B. The removal of cash from a victim entity after its entry in an accounting system.
- C. The addition of cash from a victim entity prior to its entry in an accounting system.
- D. The removal of cash from a victim entity prior to its entry in an accounting system.
Answer: D
NEW QUESTION # 19
For a ghost employee scheme to be successful, which of the following must be TRUE?
- A. Paychecks must be generated to someone who used to work for the victim company.
- B. The ghost employee must receive payment via direct deposit.
- C. The ghost employee must be a fictitious person.
- D. Paychecks must be generated to someone who does not actually work for the victim company.
Answer: A
Explanation:
Explanation/Reference: https://www.acfe.com/uploadedFiles/Shared_Content/Products/Self-Study_CPE/Other_Peoples_Money_2018_Excerpt.pdf (2)
NEW QUESTION # 20
One final means of concealing a register scheme, as with many kinds of fraud, is to destroy all records of the transaction.
- A. True
- B. False
Answer: A
NEW QUESTION # 21
The principal way to detect omitted credits from books of account is through:
- A. Expense account
- B. None of all
- C. Forced Balance
- D. Trend analysis
Answer: D
NEW QUESTION # 22
Which of the following is NOT a distinguishing feature of a Ponzi scheme?
- A. Participants attempt to recruit as many new members as possible.
- B. Promoters of Ponzi schemes engage in little or no valid commerce or investments.
- C. Previous investors are paid with money from new members.
- D. Participants believe that they are making a legitimate investment.
Answer: C
Explanation:
Explanation/Reference: https://www.acfe.com/ponzi-schemes.aspx#:~:text=A%20Ponzi%20scheme%20is%20an,actually%20a%20distribution%20of%20capital
NEW QUESTION # 23
Which of the following scenarios does NOT describe a card skimming or shimming scheme?
- A. When paying for a drink at a vending machine, a customer inserts their credit or debit card into a fraudulent device that scans and records their card information.
- B. After processing a customer's payment, a server returns with the receipt but keeps the credit or debit card hoping that the customer does not notice.
- C. A gadget attached to an ATM is used to fraudulently scan and record customers' credit or debit card information while a small camera records their PINs.
- D. While processing a payment outside of the customer's view, a retail employee uses a small device to scan and record the customer's credit or debit card information.
Answer: C
Explanation:
Explanation/Reference: https://www.experian.com/blogs/ask-experian/shimming-is-the-latest-credit-card-scam/#:~:text='Shimming'%20is%20an%20update%20on,number%20on%20the%20dark%20web
NEW QUESTION # 24
According to the recommended methodology for responding to cybersecurity incidents, which of the following activities should occur during the preparation step?
- A. Identifying all incidents of breach that occurred
- B. Restoring control of the affected systems
- C. Limiting the damage caused by the attack
- D. Creating an incident response plan
Answer: D
Explanation:
Explanation/Reference: https://www.exabeam.com/incident-response/steps/
NEW QUESTION # 25
Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.
- A. None of the above
- B. More then two employees
- C. Two employees
- D. Single employee
Answer: D
NEW QUESTION # 26
According to fraud tree, cash has three following schemes:
- A. Cash distribution, skimming and fraud analysis
- B. Skimming, cash larceny and fraudulent disbursements
- C. Fraud analysis, skimming and cash misappropriations
- D. Cash larceny, cash distribution and fraudulent disbursements
Answer: B
NEW QUESTION # 27
_________ assumes the business will go on indefinitely in the future.
- A. Going concern
- B. Materiality
- C. Cost
- D. Fair value
Answer: A
NEW QUESTION # 28
Which of the following is the MOST ACCURATE statement about the different types of malware?
- A. Ransomware is a malicious self-replicating computer program that penetrates operating systems to spread malicious code to other computers.
- B. A worm is a type of software that, while not definitely malicious, has a suspicious or potentially unwanted aspect to it.
- C. Spyware is software that collects and reports information about a computer user without the user's knowledge or consent.
- D. A Trojan horse is a software program that, while not definitely malicious, monitors and logs the keys pressed on a system's keyboard.
Answer: C
Explanation:
Explanation/Reference: https://www.techtarget.com/searchsecurity/definition/spyware#:~:text=Spyware%20is%20a%20type%20of,data%20firms%20or%20external%20users
NEW QUESTION # 29
By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.
- A. None of all
- B. False debits
- C. Journal Entries
- D. Out-of-balance
Answer: D
NEW QUESTION # 30
___________ and __________ are used to increase (or decrease) the equity account.
- A. Journal Entries & Credit
- B. None of all
- C. Journal Entries & Debit
- D. Journal Entries & transactions
Answer: D
NEW QUESTION # 31
The principle behind full disclosure is:
- A. None of above
- B. Any material deviation from GAAP must be explained to the reader of the financial information.
- C. Any material deviation from GAAP must be explained to writer of the financial information.
- D. Any material deviation from SAS must be explained to the writer oh the financial information.
Answer: B
NEW QUESTION # 32
Geoffrey, a homeowner, has decided to add a patio to the back of his house. Geoffrey hires a contractor who insists on receiving payment up front so that he can pay for the materials required to complete the construction.
The following week, Geoffrey is surprised to learn that the contractor has not arrived and is not answering his phone calls. Geoffrey has MOST LIKELY been victimized by which of the following frauds?
- A. Advance-fee scheme
- B. Scavenger scheme
- C. Block hustle scheme
- D. Deposit scheme
Answer: A
Explanation:
Explanation/Reference: https://www.linkedin.com/pulse/advance-fee-schemes-kabir-ibrahim-cisa-cfe-c
NEW QUESTION # 33
Which of the following is the criterion for bid solicitation?
- A. Containing false statements
- B. To withdraw low bids
- C. Allowing the purchaser to discuss possible employment with the contractor
- D. To falsify the bid log
Answer: C
NEW QUESTION # 34
A financial manager who pressures investors to take regular payouts rather than to reinvest their profits is a red flag of a Ponzi scheme.
- A. True
- B. False
Answer: A
Explanation:
Explanation/Reference: https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme
NEW QUESTION # 35
Which of the following fraud schemes is MOST LIKELY to target a neighborhood of immigrants?
- A. Social control scheme
- B. Advance-fee fraud
- C. Affinity fraud
- D. Bait and switch scheme
Answer: B
NEW QUESTION # 36
A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:
- A. None of the above
- B. Fiduciary Capacity
- C. Embezzlement
- D. Conversion
Answer: B
NEW QUESTION # 37
According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
- A. None of above
- B. Credentials
- C. Assets
- D. Liabilities
Answer: C
NEW QUESTION # 38
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