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| Section | Objectives |
|---|
| Financial Transactions | - Fraudulent Financial Transactions
- 1. Improper Disclosures
- 2. Concealed Liabilities and Expenses
- 3. Asset Misappropriation
- 4. Revenue Recognition Schemes
- Accounting Concepts
- 1. Internal Controls
- 2. Financial Statement Components
- 3. Accounting Systems
|
| Investigation Techniques | - Evidence Collection
- 1. Document Examination
- 2. Tracing Transactions
- 3. Interviewing and Interrogation
|
| Fraud Schemes | - Asset Misappropriation Schemes
- 1. Billing Schemes
- 2. Payroll Fraud
- 3. Inventory and Noncash Assets
- 4. Cash Larceny
- Corruption
- 1. Bribery
- 2. Conflicts of Interest
- 3. Economic Extortion
- 4. Illegal Gratuities
|
| Financial Statement Fraud | - Detection Techniques
- 1. Data Analysis Techniques
- 2. Ratio Analysis
- 3. Analytical Procedures
|
| Fraud Prevention and Deterrence | - Fraud Risk Management
- 1. Fraud Risk Assessment
- 2. Anti-Fraud Controls
- 3. Corporate Governance
|
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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Sample Questions (Q147-Q152):
NEW QUESTION # 147
Which of the following offender types are people who take the money and run away?
- A. Absconders
- B. None of the above
- C. Offender types
- D. Long-term violators
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:According to the Fraud Examiners Manual (2020 International Edition), offenders can be categorized into types. Absconders are individuals who commit fraud and immediately flee with the proceeds ("take the money and run"). They differ from long-term violators who maintain their frauds for extended periods while concealing them. Thus, the correct answer is A.
Absconders.
* Analysis of Incorrect Options:
* B. Long-term violators - These offenders commit frauds over a long period and often maintain their positions of trust while continuing the scheme.
* C. Offender types - Too vague; not a specific classification.
* D. None of the above - Incorrect, since "Absconders" directly matches.
* Key Concept:Offender Typologies - distinguishing between absconders and long-term violators in occupational fraud.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Fraud Theory - Types of Offenders
.
NEW QUESTION # 148
Accounting records are designed to be kept on subjective rather than objective evidence.
Answer: A
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:This is False. Accounting is based on the objectivity principle, requiring that records and financial information be supported by objective, verifiable evidence (e.g., invoices, contracts, receipts). Subjective evidence would undermine reliability.
* Analysis of Incorrect Options:
* A. True - Incorrect, as subjectivity is discouraged in accounting.
* B. False - Correct, since accounting relies on objective documentation.
* Key Concept:Objectivity principle in accounting.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts - Objectivity Principle.
NEW QUESTION # 149
The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others is called:
- A. Corruption
- B. Bribery
- C. Overbilling
- D. Conflict of interest
Answer: A
NEW QUESTION # 150
Which of the following is a red flag that might indicate the existence of a need recognition scheme?
- A. The purchasing entity's materials are being ordered at the optimal reorder point.
- B. The purchasing entity has unusually high requirements for stock and inventory levels.
- C. The purchasing entity has few surplus items written off as scrap.
- D. The purchasing entity has a large list of backup suppliers.
Answer: B
Explanation:
Explanation/Reference: https://www.fraudconference.com/uploadedFiles/Fraud_Conference/Content/Course-Materials/presentations/23rd/ppt/post-05-Collusion-Between-Contractors-and-Employees.pdf

NEW QUESTION # 151
According to Marshall, ______ are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
- A. Liabilities
- B. Credentials
- C. None of above
- D. Assets
Answer: D
NEW QUESTION # 152
......
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