[Q87-Q102] Updated Aug-2022 Test Engine to Practice Test for CFE Exam Questions and Answers!

QUESTION 87
By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.

Journal Entries

Out-of-balance

False debits

None of all

QUESTION 88
In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.

Deliberate writing of vague specifications

Need recognition

False specification

Bid-splitting

QUESTION 89
__________ inventory and other assets is relatively common way for fraudsters to remove assets from the books before or after they are stolen.

Altered

Perpetual

False shipping slip

Write-offs

QUESTION 90
A voucher is:

a file that includes the purchase order that was send to the vendor, the vendor invoice listing the cost and quantity of items purchased, and the internal receiving reports that verify the purchased items have been delivered.

a figure that includes the sale order that was send to the dealer, the vendor invoice listing the cost and quantity of items sold, and the internal receiving reports that verify the purchased items have been delivered.

a report that includes the purchase order that was send to the vendor, the vendor invoice listing the quality and quantity of items purchased, and the external receiving reports that verify the items have been sold.

a mammogram that includes the purchase order that was send to the purchaser, the purchaser invoice listing the benefits and quantity of items purchased, and the internal receiving reports that verify the purchased items have been sold.

QUESTION 91
Which of the following is NOT the reason why senior management will overstate business statement?

Comply with debit covenants

Meet personal performance criteria

Trigger performance related compensation

Show a pattern of growth to support sale of a business

QUESTION 92
Skimming cases can more likely to be detected by:

Internal audits

Accidents

Internal controls

occupational frauds

QUESTION 93
A voucher is:

a file that includes the purchase order that was send to the vendor, the vendor invoice listing the cost and quantity of items purchased, and the internal receiving reports that verify the purchased items have been delivered.

a figure that includes the sale order that was send to the dealer, the vendor invoice listing the cost and quantity of items sold, and the internal receiving reports that verify the purchased items have been delivered.

a report that includes the purchase order that was send to the vendor, the vendor invoice listing the quality and quantity of items purchased, and the external receiving reports that verify the items have been sold.

a mammogram that includes the purchase order that was send to the purchaser, the purchaser invoice listing the benefits and quantity of items purchased, and the internal receiving reports that verify the purchased items have been sold.

QUESTION 94
Employees with the authority to grant discounts in order to skim revenues may use which authority?

False discounts

Recording a discount on sale procedure

Internal discount sales audits

None of the above

QUESTION 95
When an incorrect total is carried from the journal to the ledger or from ledger to the financial statements, this method is called:

Forced Balance

Out-of-balance

False balance

None of all

QUESTION 96
The amount of cash on hand in a register may be compared to the amount showing in the register tape in order to detect _______.

Employee theft

Recorded sales

Internal audits

Occupational frauds

QUESTION 97
Skimming is:

The removal of cash from a victim entity prior to its entry in an accounting system.

The addition of cash from a victim entity prior to its entry in an accounting system.

The removal of cash from a victim entity after its entry in an accounting system.

None of above

QUESTION 98
When expenses used to produce income- all of them- should be matched in a consistent manner against that income, this is referred to:

Equity

Accrual basis accounting

Expense

Financial record

QUESTION 99
Which of the following is NOT the method for stealing inventory and other assets?

Larceny schemes

Asset requisition and transfer

Purchasing and receiving schemes

Sales & Equipment handling

QUESTION 100
Which of the following is NOT the aspect of inventory purchase?

Inventory purchases purposely increase in year 1 only to be liquidated in year 2.

inventory for the year 2 will be much greater than year 1.

Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales.

might be some fraud scheme in inventory.

QUESTION 101
Which sale occurs when the accomplice of the employee-fraudster “buys” merchandise, but the employee does not ring up the sale, and the accomplice takes the merchandise without making any payment?

Whole sale

Fake sale

Fraudster sale

Preliminary sale

QUESTION 102
A fabricated name and the post office box that an employee uses to collect disbursements from false billings is called:

Accomplice residence

Shell company

Perpetrator check

Cash generator