[Mar 02, 2026] Get Free Updates Up to 365 days On Developing CFE-Financial-Transactions-and-Fraud-Schemes Braindumps [Q51-Q66]

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[Mar 02, 2026] Get Free Updates Up to 365 days On Developing CFE-Financial-Transactions-and-Fraud-Schemes Braindumps [Q51-Q66]

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[Mar 02, 2026] Get Free Updates Up to 365 days On Developing CFE-Financial-Transactions-and-Fraud-Schemes Braindumps

Best Quality ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam Questions

QUESTION 51
Which of the following search is used for unusually high incidence of returns and allowances scheme?

Allowances by vendors

Disposals of allowances than reorders

Returns and allowances

None of the above

QUESTION 52
According to accounting principles, ________ and ________ should be recorded or atched in the same accounting period; failing to do so violates the matching principle of AAP.

Revenue and corresponding expenses

Revenue and Income statement

Income statement and Long-term contracts

Capitalized expenses and Liabilities

QUESTION 53
The principal way to detect omitted credits from books of account is through:

Forced Balance

Trend analysis

Expense account

None of all

QUESTION 54
Which of the following is a reason why prepaid debit and gift card fraud schemes are attractive to fraudsters?

Prepaid cards are difficult for authorities to track after the cards have been purchased and activated for use.

Prepaid cards can only be purchased from financial institutions.

Prepaid cards are often not accepted by online retailers and can only be used in transactions where the cards must be physically present.

All of the above are reasons why prepaid cards are attractive to fraudsters.

Explanation/Reference: https://www.acfe.com/article.aspx?id=4294980869

QUESTION 55
The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a willing seller is called:

Absolute value

Fair value

Cost value

Material value

Detailed Explanation:
* Rationale for Correct Answer:Fair value is defined as the price an asset would fetch in an orderly transaction between willing market participants. It reflects current market conditions, not historical cost.
* Analysis of Incorrect Options:
* A. Absolute value – Mathematical concept, not accounting.
* C. Cost value – Historical cost, not current market.
* D. Material value – Not a recognized accounting term.
* Key Concept:Fair Value Measurement under GAAP/IFRS.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts – Fair Value
.

QUESTION 56
Which of the following statements about corporate espionage is CORRECT?

Corporate espionage involves the use of illegal, clandestine means to acquire information for commercial purposes.

Corporate espionage is considered to be a legitimate business function.

Corporate espionage and competitive intelligence are synonymous terms.

Corporate espionage is the process by which competitor data re assembled into relevant, accurate, and usable knowledge.

Explanation/Reference: https://en.wikipedia.org/wiki/Industrial_espionage

QUESTION 57
Which of the following items do NOT appear on the balance sheet?

Owners’ equity

Liabilities

Expenses

Assets

Detailed Explanation:
* Rationale for Correct Answer: Expenses appear on the income statement, not the balance sheet. The balance sheet includes assets, liabilities, and owners’ equity, representing the accounting equation.
* Analysis of Incorrect Options:
* A, B, D – All appear on the balance sheet.
* Key Concept: Distinction between financial statements: balance sheet vs. income statement.
Reference: ACFE Manual, Accounting Concepts – Financial Statement Structure.

QUESTION 58
Every bribe is a two-sided transaction, in which where a vendor bribes a purchaser, there is someone on the vendor’s side of the transaction who is not making an illicit payment.

True

False

QUESTION 59
Which of the following statements describes a best practice for preventing contract and procurement fraud?

Companies should conduct background checks on all vendors before they are added to the vendor master file.

Companies should have vendor-monitoring procedures that address the red flags of all vendor schemes.

Companies should permit the person who maintains the vendor master file to also have authority to approve payments for invoices.

Companies should restrict the monitoring of their procurement activities to once a year to ensure comparability from year to year.

QUESTION 60
Schemes in which an employee physically misappropriates cash that has already appeared on the victim organization’s books are known as:

Understated sales skimming schemes

Cash larceny schemes

Unrecorded sales skimming schemes

General ledger schemes

Explanation/Reference: https://www.acfe.com/uploadedFiles/Shared_Content/Products/Self-Study_CPE/Intro%20to%20Fraud-Chapter%20Excerpt.pdf

QUESTION 61
Which of the following is TRUE regarding ghost employee schemes?

The ghost employee must be a fictitious person.

The ghost employee must be classified as an exempt employee.

The ghost employee must be someone who has never worked for the victim company.

The ghost employee must be added to the payroll.

Detailed Explanation:
* Rationale for Correct Answer: A ghost employee scheme occurs when someone (real or fictitious) is added to payroll, and paychecks are diverted to the fraudster. The key requirement is that the “ghost” is listed on payroll records.
* Analysis of Incorrect Options:
* A – The ghost may be fictitious or a real former employee.
* B – Employment classification is irrelevant.
* C – A ghost could be a current, terminated, or entirely fictitious employee.
* Key Concept: Payroll fraud – ghost employee schemes.
Reference: ACFE Manual, Asset Misappropriation – Payroll Schemes.

QUESTION 62
Which of the following is TRUE regarding accrual-basis accounting?

Expenses are recorded in the accounting system when they are paid.

Accrual-basis accounting is simpler to use than cash-basis accounting.

The accrual-basis method focuses on tracking a company’s current cash flow.

Revenues are generally recognized when goods are delivered to a customer.

QUESTION 63
___________ allows the fraud examiner to inspect key attributes on a smaller portion (or sample) of those documents.

Sampling
* Rationale for Correct Answer:Sampling is a fraud examination technique that enables investigators to review a subset of documents rather than all records. Properly designed sampling provides reasonable assurance and allows focus on anomalies or red flags.
* Key Concept:Sampling in fraud examination and audit testing.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Fraud Examination Techniques – Sampling and Document Review.

QUESTION 64
Which of the following statements is TRUE with regard to the income statement?

Gross profit is equal to revenues less operating expenses.

Net profit is the difference between total sales and the cost of goods sold.

A company’s cash balance is usually the first line item listed.

Gross revenue is the total amount of sales before deductions are applied.

Explanation/Reference: https://www.zoho.com/books/guides/what-is-an-income-statement.html#:~:text=The%20income%20statement%20shows%20a,on%20a%20good%20financial%20footing

QUESTION 65
Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.

True

False

QUESTION 66
Which of the following would be MOST INDICATIVE of loan fraud in a draw request submitted by a construction developer?

The developer’s personal account statements have been omitted.

Change orders have been included.

Lien releases from subcontractors are not included with the request.

There are several inspection reports.

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CFE-Fraud-Prevention-and-Deterrence (1)
CFE-Financial-Transactions-and-Fraud-Schemes (2)

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