Get Ready to Boost your Prepare for your CFE-Financial-Transactions-and-Fraud-Schemes Exam with 232 Questions
Use Free CFE-Financial-Transactions-and-Fraud-Schemes Exam Questions that Stimulates Actual EXAM
The Association of Certified Fraud Examiners (ACFE) offers a comprehensive certification program for professionals seeking to enhance their knowledge and skills in detecting and preventing fraud. The Certified Fraud Examiner - Financial Transactions and Fraud Schemes (CFE-Financial-Transactions-and-Fraud-Schemes) is one of the most sought-after certifications in the field of fraud examination. Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam certification exam is designed to test the knowledge and skills of professionals in the areas of financial transactions and fraud schemes.
The Financial Transactions and Fraud Schemes section of the CFE exam is essential for professionals who work in the field of fraud prevention and detection. It provides a comprehensive understanding of the different types of financial transactions and the schemes that fraudsters use to exploit them. By passing this section of the exam, professionals can demonstrate their proficiency in identifying and preventing fraud, which can make them invaluable assets to their organizations.
ACFE CFE-Financial-Transactions-and-Fraud-Schemes exam is a certification exam that is designed to test the knowledge and skills of individuals who are interested in becoming a Certified Fraud Examiner. CFE-Financial-Transactions-and-Fraud-Schemes exam focuses on financial transactions and fraud schemes, and it covers topics such as fraud prevention and detection, investigation techniques, and legal considerations.
NEW QUESTION # 47
Which of the following is NOT one of the information security goals that should be achieved to secure an e- commerce system for users and account holders?
- A. Authentication
- B. Accuracy of data
- C. Availability of data
- D. Non-repudiation
Answer: B
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: The key goals of information security (the CIA triad plus authentication and non-repudiation) are confidentiality, integrity, availability, authentication, and non-repudiation. While accuracy of data is important, it is not formally one of the core security goals.
* Analysis of Incorrect Options:
* A. Availability - Ensures users can access data when needed.
* C. Authentication - Confirms identities before granting access.
* D. Non-repudiation - Prevents denial of legitimate transactions.
* Key Concept: Information security objectives for fraud prevention.
Reference: ACFE Manual, Fraud Prevention and Deterrence - Cybersecurity Principles.
NEW QUESTION # 48
Which of the following is NOT a red flag of register disbursement schemes?
- A. Personal checks from cashiers are found in the cash register.
- B. Cashiers are authorized to void their own transactions.
- C. There are gaps in the transaction numbers on the register log.
- D. Voids just over the review limit have been approved by a supervisor.
Answer: D
NEW QUESTION # 49
Jones is an accounts payable clerk at Smith Company. He intentionally sent the wrong vendor a check for some supplies. He then called the vendor, explained his "mistake", and requested that the vendor mail back the check. Jones then intercepted the returned check and deposited it in his own account. What type of scheme did he commit?
- A. A pass-through scheme
- B. An altered payee scheme
- C. A pay and return scheme
- D. A shell company scheme
Answer: C
Explanation:
Explanation/Reference: https://www.gma-cpa.com/blog/billing-schemes-3-ways-fraudsters-can-cash-in-on-your-nonprofit#:~:text=Also%20known%20as%20a%20%E2%80%9Cpay,doesn't%20know%20it's%20occurring
NEW QUESTION # 50
"Anticipate possible losses and omit potential profits", this results in:
- A. Symmetrical accounting
- B. Bearing accounting
- C. Playing accounting
- D. Asymmetrical accounting
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:This description reflects asymmetrical accounting, which is based on the conservatism principle. Possible losses are recorded, but potential gains are omitted until realized.
This creates an asymmetry in recognizing losses versus gains.
* Analysis of Incorrect Options:
* B. Symmetrical accounting - Would recognize gains and losses equally, contrary to conservatism.
* C. Playing accounting - Fraud scheme, not a principle.
* D. Bearing accounting - Not a recognized concept.
* Key Concept:Asymmetry in accounting - conservative recognition of losses versus gains.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Accounting Concepts - Conservatism and Asymmetric Accounting.
NEW QUESTION # 51
A scheme is classified as a Conflict of interest:
- A. when an employee must have some kind of ownership or employment interest in the vendor submitting the invoice.
- B. when a salesman must have some kind of ownership or employment interest in the vendor submitting the sales.
- C. when a purchaser must have some kind of ownership or employment interest in the vendor submitting the purchase.
- D. when a dealer must have some kind of dealership interest in the vendor submitting the stock.
Answer: A
NEW QUESTION # 52
Which of the following is a method of identity theft prevention recommended for individuals?
- A. Avoid the use of biometric authentication to ensure the security of fingerprints, voice patterns, and other identifying information.
- B. Do not reuse the same answers to security questions for more than two accounts.
- C. Install security updates and patches for personal computers every six months.
- D. Create passwords that are at least eight characters long and contain a combination of letters, numbers, and symbols.
Answer: C
Explanation:
Explanation/Reference: https://www.houstontx.gov/police/crime_prevention/id_theft.htm
NEW QUESTION # 53
Which of the following is an example of a cash larceny scheme?
- A. Anne buys a $500 table from a resale shop. Olive, the cashier, rings up a $400 sale on the register and steals the excess $100.
- B. Michael is a cashier at a clothing store. He rings up a fictitious return of a $50 sweater and takes $50 from the cash register.
- C. Scott rings a "no sale" transaction at his cash register, opens the drawer, and takes a $100 bill.
- D. Laura pretends to ring up a sale when Amy makes a purchase, but instead she pockets Amy's cash and gives her the merchandise without recording the sale.
Answer: B
Explanation:
Explanation/Reference: https://www.agacgfm.org/Intergovernmental-Toolbox/Fraud-Prevention/Tools-by-Fraud-Type/Cash-Larceny.aspx#:~:text=Among%20the%20five%20most%20prevalent,Stealing%20cash%20from%20the%
20register
NEW QUESTION # 54
Which of the following is NOT one of the information security goals that should be achieved to secure an e- commerce system for users and account holders?
- A. Authentication
- B. Accuracy of data
- C. Availability of data
- D. Non-repudiation
Answer: B
NEW QUESTION # 55
"Anticipate possible losses and omit potential profits", this results in:
- A. Symmetrical accounting
- B. Bearing accounting
- C. Playing accounting
- D. Asymmetrical accounting
Answer: D
NEW QUESTION # 56
A method for gaining unauthorized access to a computer system whereby the attacker deceives victims into disclosing personal information or convinces them to commit acts that facilitate the attacker's intended scheme is known as:
- A. Packet sniffing
- B. IP spoofing
- C. Electronic piggybacking
- D. Social engineering
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Social engineering involves manipulating or deceiving people into revealing confidential information or taking actions that aid the attacker (e.g., clicking malicious links, sharing credentials). It targets human weaknesses rather than technical vulnerabilities.
* Analysis of Incorrect Options:
* A. IP spoofing - Forging an IP address to disguise origin.
* B. Electronic piggybacking - Unauthorized use of someone else's access connection.
* C. Packet sniffing - Monitoring data traffic across a network.
* Key Concept: Cyberfraud techniques - social engineering.
Reference: ACFE Manual, Fraud Prevention and Deterrence - Social Engineering Attacks.
NEW QUESTION # 57
Which of the following is a method that a fraudster might use to conceal inventory shrinkage?
- A. Writing off stolen inventory as scrap
- B. Selling merchandise without recording the sale
- C. Falsely increasing the perpetual inventory record
- D. All of the above
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Fraudsters conceal inventory shrinkage through multiple methods, including unrecorded sales, false write-offs, or manipulating perpetual records. The ACFE manual notes that concealment is a common theme in inventory fraud. Hence, all of the above are valid.
* Analysis of Incorrect Options:
* A, B, C - Each is correct individually, but the most comprehensive answer is D.
* Key Concept: Concealment methods for inventory theft.
Reference: ACFE Manual, Asset Misappropriation - Inventory and Other Assets.
NEW QUESTION # 58
The behavior profile of employees who are involved in bribery schemes may include:
- A. Extravagant lifestyle
- B. All of the above
- C. Drug and/or alcohol addiction
- D. Gambling habit
Answer: B
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Employees involved in bribery or corruption schemes often exhibit lifestyle red flags such as gambling habits, drug/alcohol addiction, or extravagant spending. These behaviors create financial pressures that may motivate or result from corrupt activity.
* Analysis of Incorrect Options:
* A, B, C individually - Each is a red flag, but the most accurate answer is all of the above.
* Key Concept:Behavioral red flags in corruption cases.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Corruption - Red Flags of Bribery
.
NEW QUESTION # 59
By what accountant means that the financial figures presented by the company are at least as much as reflected in the statements, if not more.
- A. Fraudulent statement
- B. Matching
- C. Misappropriations
- D. Conservatism
Answer: D
NEW QUESTION # 60
Which of the following are used in a short-term skimming scheme?
- A. Understated sales, theft of incoming checks, and check-for-currency substitutions
- B. False company accounts, understated sales, and theft of incoming checks
- C. Unrecorded sales, understated sales, and dual endorsements
- D. Unrecorded sales, understated sales, and theft of incoming checks
Answer: D
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Short-term skimming schemes include tactics like unrecorded sales, understated sales, and theft of incoming checks. These involve diverting funds before recording and typically last for a shorter duration because of higher detection risk.
* Analysis of Incorrect Options:
* B. Dual endorsements - Relates more to check fraud, not skimming.
* C. False company accounts - Typically used in long-term fraud concealment.
* D. Check-for-currency substitutions - More relevant to larceny and kiting schemes.
* Key Concept:Short-term skimming schemes involve quick thefts before recording transactions.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Cash Receipts - Short-term Skimming.
NEW QUESTION # 61
Which of the following is an example of a corruption scheme?
- A. Two coworkers steal confidential information from their employer and use the stolen data to start a competing business.
- B. A vendor offers the use of a beach house to a government procurement agent for free after the agent awards a contract to the vendor.
- C. A warehouse manager receives twenty laptops in a shipment but excludes five of the laptops from the records so that they can be sold to third parties.
- D. A public company omits recurring costs from its financial statements to make the company appear more profitable than it is.
Answer: B
Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Corruption schemes involve the misuse of influence in business transactions for personal benefit, often through bribery, kickbacks, or conflicts of interest. In this case, the procurement agent accepts an improper benefit (use of a beach house) in exchange for contract favoritism, which is a classic bribery scheme.
* Analysis of Incorrect Options:
* A - Theft of confidential information = asset misappropriation/intellectual property theft, not corruption.
* C - Excluding laptops from records = inventory theft, not corruption.
* D - Omitting costs = financial statement fraud.
* Key Concept: Bribery as a form of corruption.
Reference: ACFE Manual, Corruption - Bribery and Kickbacks.
NEW QUESTION # 62
Which of the following is NOT an indicator of insider cyberfraud?
- A. Access logs are not reviewed by management.
- B. Access privileges are beyond those required to perform assigned job functions.
- C. Exception reports are not reviewed and resolved.
- D. Production programs are run during normal business hours.
Answer: B
Explanation:
Explanation/Reference: https://www.acfe.com/article.aspx?id=4295013393
NEW QUESTION # 63
To keep the accounting equation in balance, which of the following actions will need to be taken if someone wants to conceal the fraudulent removal of a liability from the books?
- A. Creating a fictitious expense
- B. Decreasing a different liability
- C. Decreasing owners' equity
- D. Decreasing an asset
Answer: A
NEW QUESTION # 64
......
BEST Verified ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam Questions (2026) : https://www.dumpsvalid.com/CFE-Financial-Transactions-and-Fraud-Schemes-still-valid-exam.html
Get 100% Real CFE-Financial-Transactions-and-Fraud-Schemes Free Online Practice Test: https://drive.google.com/open?id=1eR2mcL0QUz3gfcNYA0PlDxaD_WyzUcUr