CFE

CFE practice questions, page 3 of 7, with answer review and explanations.

Question 11

Which of the following is NOT the reason why senior management will overstate business statement?

  1. Comply with debit covenants
  2. Meet personal performance criteria
  3. Trigger performance related compensation
  4. Show a pattern of growth to support sale of a business

Question 12

Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

  1. Proper documentation, segregation of duties, independent checks and physical safeguards
  2. Proper documentation, segregation of duties, independent checks and inventory control
  3. Proper documentation, physical padding, independent checks and physical safeguards
  4. prenumbered affiliations, segregation of duties, independent checks and physical safeguards

Question 13

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:

  1. Conflict of interest
  2. Corruption
  3. Bribery
  4. Overbilling

Question 14

Which of the following are the classifications for the Corruption?

  1. Bribery, economic extortion, illegal gratuities and conflicts of interest
  2. Corruption, bribery, economic extortion, conflicts of interest
  3. Overbilling, bribery, bid-ridding and illegal gratuities
  4. economic extortion, bribery, illegal gratuities and corruption

Question 15

__________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

  1. Corruption
  2. Diverting business to vendors
  3. Bribery
  4. Lacking approval authority