Online Access Free CFE-Financial-Transactions-and-Fraud-Schemes Practice Test

Black, an accounts receivable clerk, stole Customer A's monthly payment instead of posting it to A's account.
When Customer B's payment arrives a few days later, Black applies the payment to Customer A's account.
When Customer C's payment arrives a few days after that, Black applies it to Customer B's account. Black's method of crediting one account with money taken from another account is known as:

• A.Substitution
• B.Padding
• C.Daisy chain
• D.Lapping

Financial statement fraud is committed by:

• A.Organized criminals
• B.Senior Management
• C.Mid and lower-level employees
• D.All of the above

A typical issue involving materiality and fraud would be:

• A.Misappropriations
• B.Fraudulent statement
• C.Civil lawsuit
• D.Quality control

Conflict of interest cases are more easily prevented than detected.

• A.False
• B.True

Baker, an employee of ABC Corporation, was the only employee who had control of the purchasing function for his department. Baker authorized the purchase of supplies that ABC did not need and used these supplies to make improvements to his house. This is an example of what kind of fraud?

• A.Pay and return scheme
• B.Pass-through scheme
• C.Personal purchases with company funds
• D.Theft of inventory