Free Access to ACFE.CFE-Financial-Transactions-and-Fraud-Schemes.v2025-06-02.q127 with Valid Practice Test (Page 23)

Which of the following statements describes a best practice for preventing contract and procurement fraud?

A.Companies should have vendor-monitoring procedures that are based on the red flags of the vendor schemes that pose the greatest risk.
B.Companies should not conduct background checks on vendors until after they are added to the vendor master file.
C.Companies should restrict the monitoring of their procurement activities to once a year to ensure comparability over time.
D.Companies should permit the person who maintains the vendor master file to have the authority to approve invoices for payment.

Which of the following is an example of a cash larceny scheme?

A.Paul sold insurance policies to individuals but never filed the policies with the insurance company. He then stole the customers' payments, which he was able to do because the insurance company did not know the policies existed.
B.Sarah returned a $250 mirror to the store. Jenna, the cashier, recorded a $350 return on the cash register and kept the remaining $100.
C.Mark, a cashier, knew the access code for Joe's cash register. He logged in as Joe and processed transactions as usual. He then took $50 from the register at the end of his shift.
D.Emily is an accounts receivable clerk. She stole Customer A's monthly payment. When Customer B's payment arrived, she applied it to Customer A's account. When Customer C's payment arrived, she applied it to Customer B's account.

Which of the following is a method that a fraudster might use to conceal inventory shrinkage?

Which of the following statements regarding new account fraud is MOST ACCURATE?

A.It is more likely that fraud will occur in established accounts than in accounts that are still considered to be new.
B.Mobile deposits are at high risk for new account fraud because fraudsters can easily make deposits using forged or counterfeit images.
C.New account fraud can be defined as any fraud that occurs on an account during the first six months that it is open.
D.Automated teller machines (ATMs) are rarely targets of new account fraud because it is easier for criminals to commit fraud via face-to-face transactions.

Which of the following statements is MOST ACCURATE regarding the methods used for making corrupt payments in corruption schemes?

A.Payers cannot make corrupt payments by providing loans to recipients.
B.Payers cannot pay off a recipient's credit card debt because of anti-money laundering rules.
C.Payers can make corrupt payments by giving recipients hidden interests in profit-making enterprises.
D.Payers often make corrupt payments by selling property to recipients at prices higher than the property's market value.

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