CFE - Financial Transactions and Fraud Schemes

CFE - Financial Transactions and Fraud Schemes practice questions, page 7 of 10, with answer review and explanations.

Question 31

Which of the following is MOST ACCURATE concerning common methods that identity thieves use to steal information?

  1. Vishing involves using an imitation website to trick targets into revealing personal or business information.
  2. Stealing a credit card number by watching someone enter it on a computer is an example of shoulder surfing.
  3. Searching for sensitive personal information on used mobile phones purchased from a reseller is an example of dumpster diving.
  4. Baiting is defined as the practice of manipulating people into revealing personal or business information.

Question 32

Which of the following would NOT be helpful in the prevention of expense reimbursement schemes?

  1. Requiring all receipts to be submitted electronically
  2. Comparing current expenses to budgeted expense amounts
  3. Requiring employees to explain the specific business purpose of each expense
  4. Comparing current expenses to historical expenditure amounts

Question 33

All of the following items appear on the balance sheet EXCEPT:

  1. Liabilities
  2. Cost of goods sold
  3. Assets
  4. Retained earnings

Question 34

Which of the following is an example of a corruption scheme?

  1. A public company omits recurring costs from its financial statements to make the company appear more profitable than it actually is.
  2. A government procurement manager awards a lucrative contract to a vendor in exchange for an offer of future employment.
  3. A warehouse manager receives thirty tablets in a shipment but excludes five from the records and sells them to third parties.
  4. Two data analysts steal confidential algorithms from their workplace and use the stolen data to start a competing business.

Question 35

Green, an employee of ABC Corporation, formed a company called Acme Consulting. He opened a bank account in Acme’s name and used his home computer to create invoices from Acme for “consulting services.” In reality, Acme does not provide any services at all. It is a company in name only. Green submitted the invoices from Acme Consulting to his employer, ABC Corporation. When ABC made payment on the false invoices, Green collected and deposited them. What type of scheme has Green committed?

  1. A shell company scheme
  2. A pay and return scheme
  3. A cash larceny scheme
  4. A pass-through scheme