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| Section | Objectives |
|---|
| Topic 1: Fraud Schemes | - Asset Misappropriation Schemes
- 1. Expense reimbursement fraud
- 2. Inventory and asset theft
- 3. Cash theft and skimming
- 4. Payroll fraud
- Fraudulent Disbursements
- 1. Check tampering
- 2. Billing shell companies
- 3. Billing schemes
|
| Topic 2: Financial Crimes | - Financial Statement Fraud
- 1. Asset overstatement
- 2. Expense understatement
- 3. Revenue manipulation
- Money Laundering
- 1. Layering stage
- 2. Placement stage
- 3. Integration stage
- Corruption Schemes
- 1. Conflicts of interest
- 2. Kickbacks
- 3. Bribery
|
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Free PDF 2026 ACFE CFE-Fraud-Schemes-and-Financial-Crimes Fantastic Training Tools
The Certified Fraud Examiner -Fraud Schemes and Financial Crimes (CFE-Fraud-Schemes-and-Financial-Crimes) practice questions give you a feeling of a real exam which boost confidence. Practice under real Certified Fraud Examiner -Fraud Schemes and Financial Crimes (CFE-Fraud-Schemes-and-Financial-Crimes) exam situations is an excellent way to learn more about the complexity of the ACFE CFE-Fraud-Schemes-and-Financial-Crimes Exam Dumps. You can learn from your Certified Fraud Examiner -Fraud Schemes and Financial Crimes (CFE-Fraud-Schemes-and-Financial-Crimes) practice test mistakes and overcome them before the actual CFE-Fraud-Schemes-and-Financial-Crimes exam.
ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions (Q66-Q71):
NEW QUESTION # 66
In Cressey's fraud triangle, its three legs are Opportunity, Pressure, and:
- A. Rationalization
- B. Isolation
- C. None of the above
- D. Violation
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Donald Cressey's fraud triangle identifies three conditions that lead to occupational fraud: (1) Pressure (financial or other), (2) Opportunity (ability to commit without detection), and (3) Rationalization (justification by the perpetrator to make the act acceptable in their own mind). Thus, the third leg is Rationalization .
* Analysis of Incorrect Options:
* A. Violation - Not part of the fraud triangle.
* B. Isolation - Not a recognized component of the model.
* D. None of the above - Incorrect because rationalization is explicitly the correct answer.
* Key Concept: Fraud Triangle - Opportunity, Pressure, Rationalization .
Reference: ACFE Fraud Examiners Manual (2020 International Edition) , Fraud Theory section - Cressey' s Fraud Triangle .
NEW QUESTION # 67
People commit financial statement fraud to:
- A. Preserve personal status/control
- B. Stand outside the accounting system
- C. Maintain personal income
- D. Conceal false business performances
Answer: D
Explanation:
Reference: ACFE Fraud Examiners Manual (2020 International Edition) , Financial Statement Fraud - Motivations and Incentives .
NEW QUESTION # 68
Which of the following would be helpful in detecting a cash larceny scheme?
- A. Reconciling cash register totals to the amount of cash in the register drawer
- B. Requiring cashiers to perform cash counts of their own cash registers at the end of each shift
- C. Prohibiting employees from performing the duties of an absent employee
- D. Having the accounts receivable clerk prepare the bank deposit
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Cash larceny involves stealing cash after it has been recorded.
Reconciling register totals against actual drawer cash can reveal shortages, making option C the best detection method.
* Analysis of Incorrect Options:
* A - Weakens segregation of duties and increases fraud risk.
* B - Impractical; cross-training is often necessary.
* D - Cashiers counting their own registers weakens independent verification and may conceal theft.
* Key Concept: Detecting cash larceny through reconciliation controls.
Reference: ACFE Manual, Cash Receipts - Cash Larceny Schemes .
NEW QUESTION # 69
Which of the following statements regarding financial statement disclosures is TRUE?
- A. Events occurring after the close of a reporting period that might significantly affect the financial statements do not need to be disclosed.
- B. Related-party transactions only need to be disclosed if they might financially harm the company's stakeholders.
- C. Management must disclose potential losses from ongoing litigation if the likelihood of the related liability is reasonably possible.
- D. Changes in accounting principles do not need to be disclosed in the financial statements.
Answer: C
Explanation:
The correct answer is A. Financial statement disclosures are required when information is necessary for users to understand the entity's financial position and risks. Potential losses from ongoing litigation generally must be disclosed when the likelihood of loss is reasonably possible, even if the amount is not yet certain. Option B is incorrect because significant subsequent events after the reporting period might require disclosure. Option C is incorrect because changes in accounting principles must generally be disclosed to preserve comparability and transparency. Option D is too narrow because related-party transactions require disclosure when material or relevant, not only when they financially harm stakeholders. The ACFE financial statement fraud materials identify improper disclosures, concealed liabilities, subsequent events, and related-party transactions as important fraud risk areas.
NEW QUESTION # 70
According to Hollinger and Clark, for policy development, management must pay attention to:
- A. Enforcement of sanctions
- B. Both A & B
- C. A clear understanding regarding theft behavior
- D. Neither A nor B
Answer: B
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Hollinger and Clark's research emphasized that management policy should focus on: (1) developing a clear understanding of theft behavior and its causes, and (2) enforcing sanctions consistently. Both are necessary to reduce employee deviance and occupational fraud. Thus, C). Both A & B is correct.
* Key Concept: Hollinger-Clark Study - policy implications for managing employee theft.
Reference: ACFE Fraud Examiners Manual (2020 International Edition) , Fraud Theory - Hollinger-Clark Research Findings .
NEW QUESTION # 71
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