Question 1

Which legal code makes the bribing of public officials illegal?

Accepted Answer

A) Title 18,U.S.Code Section 201 
B) Title 41,U.S.Code Section 51 to 58 
C) Title 18,U.S.Code Section 1341 
D) Title 18,U.S.Code Section 1344 
A) Title 18,U.S.Code Section 201 
B) Title 41,U.S.Code Section 51 to 58 
C) Title 18,U.S.Code Section 1341 
D) Title 18,U.S.Code Section 1344

Question 2

The burden of proof in a criminal case must:

Accepted Answer

A) be beyond a reasonable doubt. 
B) be the preponderance of knowledge and power. 
C) be preponderance of evidence. 
D) lie with the defendant. 
A) be beyond a reasonable doubt. 
B) be the preponderance of knowledge and power. 
C) be preponderance of evidence. 
D) lie with the defendant.

Question 3

Employee embezzlement can be direct or indirect.Indirect fraud occurs when:

Accepted Answer

A) an employee uses company assets to run his/her private business. 
B) employees establish dummy companies and have their employers pay for goods that are not actually delivered. 
C) an employee receives a kickback from a vendor. 
D) an employee steals company cash,inventory,tools,or other assets. 
A) an employee uses company assets to run his/her private business. 
B) employees establish dummy companies and have their employers pay for goods that are not actually delivered. 
C) an employee receives a kickback from a vendor. 
D) an employee steals company cash,inventory,tools,or other assets.

Question 4

The study conducted by the Association of Certified Fraud Examiners in 2008 estimated that U.S.organizations lose _____ percent of their annual revenues to fraud.

Accepted Answer

A) 8 
B) 7 
C) 23 
D) 17 
A) 8 
B) 7 
C) 23 
D) 17

Question 5

Perpetrators of some fraud schemes often target conspiracy theorists,promising access to the "secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns.Such schemes are best described as:

Accepted Answer

A) Affinity frauds. 
B) Ponzi schemes. 
C) Franchise frauds. 
D) Prime bank schemes. 
A) Affinity frauds. 
B) Ponzi schemes. 
C) Franchise frauds. 
D) Prime bank schemes.

Question 6

How is the confidence element established in a Ponzi scheme?

Accepted Answer

A) By investing in prime bonds. 
B) By issuing notarized certificates. 
C) By paying returns to initial investors. 
D) By returning money to all investors. 
A) By investing in prime bonds. 
B) By issuing notarized certificates. 
C) By paying returns to initial investors. 
D) By returning money to all investors.

Question 7

The following are all elements of Title 26,U.S.Code Section 7201 EXCEPT:

Accepted Answer

A) not reporting bribe income may be grounds for being charged with tax evasion. 
B) filing income tax that excludes income from fraud may be considered an improper tax filing. 
C) bribes may be deducted as legitimate business expenses. 
D) failure to report income from fraud may be grounds for being charged with tax evasion. 
A) not reporting bribe income may be grounds for being charged with tax evasion. 
B) filing income tax that excludes income from fraud may be considered an improper tax filing. 
C) bribes may be deducted as legitimate business expenses. 
D) failure to report income from fraud may be grounds for being charged with tax evasion.

Question 8

The GDP in the economy of Ponziland was $5 billion in the year prior to the frauds (year 1).The economy were growing at 4 percent.Frauds during the year reduce aggregate income by $200 million.During the year,the economy has:

Accepted Answer

A) shrunk by 1 percent. 
B) grown by only 1 percent. 
C) remained flat. 
D) grown by 4 percent. 
A) shrunk by 1 percent. 
B) grown by only 1 percent. 
C) remained flat. 
D) grown by 4 percent.

Question 9

Which of the following frauds is usually the most expensive?

Accepted Answer

A) Vendor fraud 
B) Customer fraud 
C) Occupational fraud 
D) Financial statement fraud 
A) Vendor fraud 
B) Customer fraud 
C) Occupational fraud 
D) Financial statement fraud

Question 10

Civil claims begin when one party files a complaint against another,usually for the purpose of:

Accepted Answer

A) penalty. 
B) imprisonment. 
C) proving the other party wrong. 
D) financial restitution. 
A) penalty. 
B) imprisonment. 
C) proving the other party wrong. 
D) financial restitution.

Question 11

To be successful,plaintiffs in civil cases must prove their case by which of the following?

Accepted Answer

A) Preponderance of evidence. 
B) Beyond a reasonable doubt. 
C) To a degree of reasonable mitigation. 
D) To the standard of prima facie. 
A) Preponderance of evidence. 
B) Beyond a reasonable doubt. 
C) To a degree of reasonable mitigation. 
D) To the standard of prima facie.

Question 12

Management fraud is often referred to as:

Accepted Answer

A) stockholder fraud. 
B) financial statement fraud. 
C) affinity fraud. 
D) investment fraud. 
A) stockholder fraud. 
B) financial statement fraud. 
C) affinity fraud. 
D) investment fraud.

Question 13

Which of the following observations concerning occupational fraud is NOT true?

Accepted Answer

A) It is clandestine. 
B) It is committed for the purpose of direct or indirect financial benefit to the employee. 
C) It always involves two or more employees. 
D) It costs the employing organization assets,revenues,or reserves. 
A) It is clandestine. 
B) It is committed for the purpose of direct or indirect financial benefit to the employee. 
C) It always involves two or more employees. 
D) It costs the employing organization assets,revenues,or reserves.

Question 14

Fraud has a direct dollar for dollar impact on a company's:

Accepted Answer

A) Revenues. 
B) Net income. 
C) Profit margin. 
D) Stock price. 
A) Revenues. 
B) Net income. 
C) Profit margin. 
D) Stock price.

Question 15

A company was the victim of several frauds that totaled approximately $10 million in one year.With a profit margin of 10 percent,and assuming that the company's product sold for $1,000 per unit,how many additional units must the company sell to compensate for the fraud losses?

Accepted Answer

A) 1 million 
B) 100 million 
C) 100,000 
D) 10,000 
A) 1 million 
B) 100 million 
C) 100,000 
D) 10,000

Question 16

Generally applicants for CFE certification should have a minimum of a bachelor's degree or equivalent from an institution of higher learning.Alternatively if applicants do not have a bachelor's degree,they may substitute ______ months of fraud-related professional experience for each year of academic study.

Accepted Answer

A) 24 
B) 18 
C) 15 
D) 12 
E) 9 
A) 24 
B) 18 
C) 15 
D) 12 
E) 9

Question 17

A company is a victim of a $414 million fraud.At that time its profit margin is 10%.How much additional revenue should the company generate in order to recover the effect on net income?

Accepted Answer

A) $41.4 million 
B) $414 million 
C) $4.14 billion 
D) $41.4 billion 
A) $41.4 million 
B) $414 million 
C) $4.14 billion 
D) $41.4 billion

Question 18

Which of the following is NOT a characteristic of management fraud?

Accepted Answer

A) Top management deception. 
B) Manipulation of financial statements. 
C) Kickbacks or bribes. 
D) Pressure to earn year-end bonuses. 
A) Top management deception. 
B) Manipulation of financial statements. 
C) Kickbacks or bribes. 
D) Pressure to earn year-end bonuses.

Question 19

The word "con," which means to deceive,comes from the word:

Accepted Answer

A) Contract. 
B) Conserve. 
C) Confuse. 
D) Confidence. 
A) Contract. 
B) Conserve. 
C) Confuse. 
D) Confidence.

Question 20

The ACFE includes three major categories of occupational fraud EXCEPT:

Accepted Answer

A) asset misappropriations. 
B) corruption. 
C) fraudulent statements. 
D) pension fraud. 
A) asset misappropriations. 
B) corruption. 
C) fraudulent statements. 
D) pension fraud.

Which legal code makes the bribing of public officials illegal?

The burden of proof in a criminal case must:

Employee embezzlement can be direct or indirect.Indirect fraud occurs when:

The study conducted by the Association of Certified Fraud Examiners in 2008 estimated that U.S.organizations lose _____ percent of their annual revenues to fraud.

Perpetrators of some fraud schemes often target conspiracy theorists,promising access to the "secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns.Such schemes are best described as:

How is the confidence element established in a Ponzi scheme?

The following are all elements of Title 26,U.S.Code Section 7201 EXCEPT:

The GDP in the economy of Ponziland was $5 billion in the year prior to the frauds (year 1).The economy were growing at 4 percent.Frauds during the year reduce aggregate income by $200 million.During the year,the economy has:

Which of the following frauds is usually the most expensive?

Civil claims begin when one party files a complaint against another,usually for the purpose of:

To be successful,plaintiffs in civil cases must prove their case by which of the following?

Management fraud is often referred to as:

Which of the following observations concerning occupational fraud is NOT true?

Fraud has a direct dollar for dollar impact on a company's:

A company was the victim of several frauds that totaled approximately $10 million in one year.With a profit margin of 10 percent,and assuming that the company's product sold for $1,000 per unit,how many additional units must the company sell to compensate for the fraud losses?

A company is a victim of a $414 million fraud.At that time its profit margin is 10%.How much additional revenue should the company generate in order to recover the effect on net income?

Which of the following is NOT a characteristic of management fraud?

The word "con," which means to deceive,comes from the word:

The ACFE includes three major categories of occupational fraud EXCEPT:

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability,asset,and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 1: The Nature of Fraud

Which legal code makes the bribing of public officials illegal?

The burden of proof in a criminal case must:

Employee embezzlement can be direct or indirect.Indirect fraud occurs when:

The study conducted by the Association of Certified Fraud Examiners in 2008 estimated that U.S.organizations lose _____ percent of their annual revenues to fraud.

Perpetrators of some fraud schemes often target conspiracy theorists,promising access to the "secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns.Such schemes are best described as:

How is the confidence element established in a Ponzi scheme?

The following are all elements of Title 26,U.S.Code Section 7201 EXCEPT:

The GDP in the economy of Ponziland was $5 billion in the year prior to the frauds (year 1).The economy were growing at 4 percent.Frauds during the year reduce aggregate income by $200 million.During the year,the economy has:

Which of the following frauds is usually the most expensive?

Civil claims begin when one party files a complaint against another,usually for the purpose of:

To be successful,plaintiffs in civil cases must prove their case by which of the following?

Management fraud is often referred to as:

Which of the following observations concerning occupational fraud is NOT true?

Fraud has a direct dollar for dollar impact on a company's:

A company was the victim of several frauds that totaled approximately $10 million in one year.With a profit margin of 10 percent,and assuming that the company's product sold for $1,000 per unit,how many additional units must the company sell to compensate for the fraud losses?

A company is a victim of a $414 million fraud.At that time its profit margin is 10%.How much additional revenue should the company generate in order to recover the effect on net income?

Which of the following is NOT a characteristic of management fraud?

The word "con," which means to deceive,comes from the word:

The ACFE includes three major categories of occupational fraud EXCEPT:

Why People Commit Fraud

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability,asset,and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

Bankruptcy, divorce, and Tax Fraud

Fraud in E-Commerce

Legal Follow-Up

Filters