CFE-Financial-Transactions-and-Fraud-Schemes Valid Practice Materials | Reliable CFE-Financial-Transactions-and-Fraud-Schemes Exam Guide

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| Section | Objectives |
|---|
| Financial Transactions | - Accounting Concepts
- 1. Accounting Systems
- 2. Internal Controls
- 3. Financial Statement Components
- Fraudulent Financial Transactions
- 1. Revenue Recognition Schemes
- 2. Asset Misappropriation
- 3. Concealed Liabilities and Expenses
- 4. Improper Disclosures
|
| Fraud Schemes | - Corruption
- 1. Illegal Gratuities
- 2. Bribery
- 3. Economic Extortion
- 4. Conflicts of Interest
- Asset Misappropriation Schemes
- 1. Inventory and Noncash Assets
- 2. Payroll Fraud
- 3. Cash Larceny
- 4. Billing Schemes
|
| Investigation Techniques | - Evidence Collection
- 1. Interviewing and Interrogation
- 2. Document Examination
- 3. Tracing Transactions
|
| Financial Statement Fraud | - Detection Techniques
- 1. Analytical Procedures
- 2. Ratio Analysis
- 3. Data Analysis Techniques
|
| Fraud Prevention and Deterrence | - Fraud Risk Management
- 1. Corporate Governance
- 2. Anti-Fraud Controls
- 3. Fraud Risk Assessment
|
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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Sample Questions (Q87-Q92):
NEW QUESTION # 87
Which of the following is a method of identity theft prevention that is recommended for businesses?
- A. Collect government identification numbers from customers only when legally required to gather that information
- B. Audit practices involving the handling of information only when regulators require it
- C. Use government identification numbers as employee identification numbers
- D. Use encryption only when sending personal information externally through a hardwired internet connection
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Best practice is to minimize collection of sensitive data such as government identification numbers, only obtaining them when legally required. This reduces the risk of identity theft exposure in case of a breach.
* Analysis of Incorrect Options:
* A. Use government IDs as employee IDs - Increases risk of exposure, not prevention.
* B. Audit information practices only when required - Insufficient; audits should be regular and proactive.
* C. Use encryption only for external transfers - Encryption should always be applied, not selectively.
* Key Concept: Identity theft prevention for businesses.
Reference: ACFE Fraud Examiners Manual (2020), Corruption: Identity Theft Prevention Practices.
NEW QUESTION # 88
Which of the following is a recommended activity that organizations should engage in to protect their proprietary information from threats?
- A. Strong devices containing sensitive data in specially constructed quiet rooms
- B. Prohibiting all nonemployees from entering the organization's premises
- C. Enlisting a company task force to identify areas most at risk for theft by a competitor
- D. Practicing data maximization to limit the information available during a data breach
Answer: C
Explanation:
Explanation/Reference: https://www.acfe.com/uploadedfiles/acfe_website/content/documents/managing-business-risk.pdf
NEW QUESTION # 89
Blue borrowed her employer's snowplow for her own snow removal business, which she operates on the side.
Blue only used the snowplow on the weekends or after hours, when her employer was not open for business.
Blue falsified the mileage and usage logs for the snowplow so that no one would know she had been using it.
The snowplow was returned unharmed. Which of the following statements is MOST ACCURATE?
- A. Blue committed larceny of a noncash asset.
- B. Blue committed a fictitious sales scheme.
- C. Blue did not commit occupational fraud.
- D. Blue committed misuse of a noncash asset.
Answer: D
NEW QUESTION # 90
Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.
Answer: B
NEW QUESTION # 91
Which of the following ratios can be used to determine the efficiency with which a company uses its assets?
- A. Quick ratio
- B. Asset turnover ratio
- C. Receivable turnover ratio
- D. Debt-to-equity ratio
Answer: B
NEW QUESTION # 92
......
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